PenCom says 20 PFAs have met N5bn minimum regulatory capital
Mrs. Aisha Dahir-Umar, AG D-G, Pencom

National Pension Commission (PenCom) says 20 Pension Fund Administrators (PFAs) have meet the April 27 deadline for a Minimum Regulatory Capital (shareholders’ fund) from N1 billion to N5 billion.

PenCom made the disclosure in a statement on Friday, after approving recapitalisation for PFAs, with a 12-month transition from April 27, 2021, to April 27, 2022.

During the start of the year, PenCom had issued certificates of compliance to 207 organizations.

According to the commission, assets had grown by 244 per cent from N3 trillion in 2012 (when the previous recapitalisation was done), to N12.29 trillion (as at Dec. 31, 2020).

It added that sustained growth in assets signifies increased responsibilities that require more operational capacity by the PFAs.

The statement said, “10 PFAs had met the new regulatory capital requirement of N5 billion as at Dec. 31, 2021, while the others intensified efforts to meet the April 27, 2022 deadline” citing that the exercise resulted in some mergers and acquisitions, which led to the reduction of the number of PFAs from 22 to 20.

“The commission approved the acquisition of AIICO Pension Managers Ltd. by FCMB Pensions Ltd. and the merger between Tangerine Pensions Ltd. and APT Pension Funds Managers Ltd.

“It also approved a subsequent change of name of the merged entities to Tangerine APT Pensions Limited.

“In addition, the commission approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Ltd. after its acquisition of majority shareholding.”

It added that the with the end of the recapitalization scheme, stakeholders, particularly Retirement Savings Accounts holders should expect increased effectiveness and efficiency as well as improved service delivery from PFAs

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