The National Pension Commission has increased the minimum capital requirements of Pension Fund Administrators and Pension Fund Custodians to N20bn and N25bn, respectively, with a deadline of 31 December 2026 to meet the new capital requirements. This was disclosed in the latest circular from the regulator, which has unveiled significant guidelines throughout the past week as part of its Pension Revolution 2.0. The last review of the minimum capital requirement for PFA business was in April 2021, when it was increased from N1bn to N5bn. Under the new directive, three categories were created, with Category A consisting of PFAs with Assets Under Management of N500bn and above, who are expected to have a minimum capital of N20bn + one per cent of AUM, N500bn. Category B comprises PFAs with AUM below N500bn, who must raise their capital base to N20bn. Those in Category C are special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30bn, and the Nigerian University Pension Management Company Limited, whose minimum capital was fixed at N20bn. PenCom added that the minimum capital requirement for a new PFA licence shall be N20bn with immediate effect.

Punch