From Uche Usim, Abuja

The National Pension Commission (PenCom) has revealed that all Pension Fund Administrators (PFAs) have fully complied with the Commission’s directive for the increase of the minimum regulatory capital (shareholders’ fund) from N1 billion to N5 billion.

PenCom made the disclosure in a press statement released Friday night where it informed relevant stakeholders and the public of the development.

PenCom recalled that PFAs were given a 12-month transition period from 27 April 2021 to 27 April 2022 to recapitalise as the value of pension fund assets under

management and custody had grown exponentially by 244 percent; from N3 trillion in 2012 (when the previous recapitalisation was done) to N12.29 trillion (as at December 31, 2020).

“The sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs. The urgent need to ramp up PFAs capacity to manage the increasing number of registered contributors and value of pension fund assets under management led to the

recapitalisation exercise.

“It is worthwhile to state that 10 PFAs had met the new regulatory capital requirement of N5 billion as at 31 December 2021, while the others intensified efforts to meet the deadline of 27 April 2022. This resulted in some mergers and

acquisitions, which led to the reduction of the number of PFAs from 22 to 20”, the statement explained.

It added that the Commission approved the acquisition of AIICO Pension Managers Limited by FCMB Pensions Limited; and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and subsequent change of name of the merged entity to Tangerine APT Pensions Limited.

In addition, the Commission also approved Norrenberger’s acquisition of IEI-Anchor Pension

Managers Limited, after its acquisition of the majority shareholder, IEI Plc.

With the conclusion of the recapitalisation exercise, stakeholders, particularly

RSA holders, should expect increased effectiveness and efficiency as well as

improved service delivery from PFAs.

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Source: news