142
The National Pension Commission (PenCom) has said its ongoing recapitalisation requirement for licensed pension fund operators is a strategic move to strengthen the financial base of the industry and safeguard the nation’s fast-growing pension assets.
Speaking on Tuesday in Abuja at a seminar to mark the 2025 Customer Service Week, the Director-General of PenCom, Ms. Omolola Oloworaran, represented by the Acting Commissioner Inspectorate, Mr. Samuel Uwandu, said the recapitalisation directive is meant to boost confidence in the pension system and ensure its sustainability.
“The recapitalisation requirement for Licensed Pension Fund Operators is a major step towards strengthening the financial resilience of the pension industry by ensuring that the operators are adequately capitalised to secure the pension assets under management,” Oloworaran stated. “The Commission is safeguarding all pension assets and promoting a more stable, efficient, and competitive industry.”
She explained that the recapitalisation exercise is part of a broader reform plan called “Pension 2.0”, which aims to modernise pension administration and transform the customer experience in Nigeria’s pension sector.
According to her, the initiative is anchored on innovation, inclusion, and integrity, all designed to deliver better services and expand pension coverage for Nigerian workers.
As part of the Pension 2.0 reforms, PenCom has issued new guidelines allowing retirement savings accounts (RSAs) to be held in foreign currency, a move that enables Nigerians in the diaspora and employees of foreign companies to participate in the Contributory Pension Scheme.
Oloworaran also highlighted the rollout of the Personal Pension Plan, a new product aimed at bringing self-employed individuals and informal sector workers into the pension system.
“The Personal Pension Plan embodies the spirit of ‘Mission Possible’ as it breaks long-standing barriers to financial inclusion and ensures that every Nigerian, regardless of income or occupation, can build a secure retirement,” she said.
She added that the Commission had introduced a framework for accredited pension agents, who would market and sell the Personal Pension Plan nationwide, especially in underserved communities.
The PenCom boss further said that governance reforms remain a key part of the recapitalisation agenda. She noted that the Revised Guidelines for Corporate Governance for pension operators were developed to strengthen accountability, transparency, and ethical conduct across the industry.
According to her, recapitalisation and governance reforms together are necessary to protect contributors’ savings and sustain public trust. “This is a reminder that behind every regulation and every reform is a human story of individuals who have entrusted their future to the pension system. Our duty is to ensure we justify that trust through efficiency, transparency, and responsiveness to those we serve,” she said.
Oloworaran assured stakeholders that PenCom will continue to promote service excellence through digital innovation, stronger compliance mechanisms, and improved customer communication.
Also speaking at the event, the Head of Operations at SERVICOM, Mrs. Ngozi Akinbodewa, represented by Mr. Duruba Sesugh, emphasised the need for customer-centred reforms in the pension sector. She commended PenCom’s leadership for prioritising service delivery and citizen-focused initiatives.
Akinbodewa said this year’s Customer Service Week theme, “Mission Possible”, reflects determination and teamwork in transforming customer service delivery across Nigeria’s public institutions.
She added that “determination, collaboration, and data-driven decisions are key to achieving service excellence and maintaining the trust of pension contributors.”
Recent industry data shows that Nigeria’s total pension assets surpassed N25 trillion, reaching N25.89 trillion as of August 2025. According to PenCom’s monthly report, the funds first crossed the N25 trillion mark in July 2025 and rose further by N97.88 billion in August.
The appreciation in pension funds, which grew by about N1.26 trillion (5.14 per cent) between June and August 2025, reflects increasing compliance among employers and improved returns on investment in the regulated pension space.
PenCom said the recapitalisation directive forms part of efforts to maintain stability in the growing industry. The Commission increased the minimum capital requirement for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to N20 billion and N25 billion, respectively.
The Commission also introduced new classifications for operators based on the size of assets under management (AUM):
- Category A: PFAs managing N500 billion and above must have a minimum capital of N20 billion plus one per cent of AUM exceeding N500 billion.
- Category B: PFAs with AUM below N500 billion must raise their capital to N20 billion.
- Category C: Special-purpose PFAs, such as NPF Pensions Limited (N30 billion minimum) and the Nigerian University Pension Management Company Limited (N20 billion minimum).
For new entrants into the industry, PenCom set the minimum capital requirement at N20 billion, effective immediately.
Similarly, the minimum capital for PFCs—unchanged since 2004 when it stood at N2 billion—has now been revised to N25 billion plus 0.1 per cent of assets under custody.
PenCom said the new capital thresholds must be met by December 31, 2026, adding that the recapitalisation effort will create a more resilient pension industry capable of protecting contributors’ funds and expanding pension coverage nationwide.
