The National Pension Commission (PenCom) has said that 20 pension fund administrators (PFAs) have scaled through the N5 billion pension industry recapitalisation exercises whose deadline was April 27, 2022.
This was contained in the statement made available to this medium by the Commission at the weekend. The statement said all the PFAs have complied with the directive, although there were mergers and acquisitions in the process, which shrank the number of PFAs from 22 to 20.
The Commission, in April last year, announced an increase in the minimum share capital of PFAs from N1 billion to N5 billion. The PenCom, gave the operators 12 months to meet the new capital regime.
The industry statistics show that as of December 31, 2021, 10 PFAs had met the new regulatory requirement.
PenCom stated: “This resulted in some mergers and acquisitions which led to the reduction of the number of PFAs from 22 to 20.
“In between the announcement of the new capital regime and the deadline, the Commission approved the acquisition of AllCO Pension Managers Limited by FCMB Pensions Limited and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited as well as the subsequent change of name of the merged entity to Tangerine APT Pensions Limited. The Commission also approved Norrenberger’s acquisition of IEI-Anchor Pension Managers Limited, after it acquired the majority shareholder, IEI Pic.”
With the conclusion of the recapitalisation exercise, it said, stakeholders, particularly retirement savings account (RSA) holders should expect increased efficiency as well as improved service delivery from PFAs.
The exercise, according to PenCom, became expedient as the value of pension fund assets under management and custody had grown exponentially, from N3 trillion in 2012 (when the previous recapitalisation was done) to N12.29 trillion (as of December 31, 2020).