Economy

PenCom Recapitalisation of PFAs on Track for 2027

Published

10 months ago

December 19, 2025

PenCom PFA recapitalisation remains on course; operators must meet capital requirements by June 2027 or risk licence revocation

The National Pension Commission (PenCom) has confirmed that the recapitalisation of Pension Fund Administrators (PFAs) remains on course, with all operators expected to meet the new capital thresholds by June 2027.

Also read: Strong Progress Seen as Bank Recapitalisation Advances

Director-General Omolola Oloworaran dismissed claims that the exercise had been suspended during the 2025 PenCom Media Conference on Thursday, warning that non-compliant PFAs would have their licences revoked.

“Recapitalisation has not been suspended. We have communicated the requirements to the PFAs, and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence,” Oloworaran said.

She noted broad industry acceptance of the policy, with many PFAs already taking steps to raise additional capital or pursue mergers and acquisitions. “You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us,” she said.

Oloworaran also highlighted ongoing regulatory challenges, including improving employer compliance with pension remittances.

PenCom has signed a memorandum of understanding with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and is collaborating with labour unions to ensure timely contributions.

The commission has also streamlined documentation requirements for public sector workers and participants in the Personal Pension Plan to facilitate enrolment and benefit processing.

In addition, PenCom will ensure PFAs resume mandatory awareness and advocacy programmes across Nigeria’s six geopolitical zones.

On capital requirements, PenCom’s September 26 circular mandates that PFAs with Assets Under Management (AUM) of N500 billion and above maintain a minimum of N20 billion plus one per cent of the excess above N500 billion.

PFAs with AUM below N500 billion are required to maintain a capital base of N20 billion.

Special-purpose PFAs such as NPF Pensions Ltd. require N30 billion, while the Nigerian University Pension Management Company Ltd. will maintain N20 billion.

The minimum capital for new PFA licences is N20 billion, and PFC licences now require N25 billion plus 0.1 per cent of Assets Under Custody (AUC).

Also read: CBN, BDC Recapitalisation Policy Threatens Northern Economic Stability

Oloworaran reiterated PenCom’s commitment to strengthening regulation, improving compliance, and safeguarding the pension rights of Nigerian workers and retirees.

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Economy

NRS Assures Taxpayers VAT Remains at 7.5% Amid Tax Reform Concerns

Published

1 day ago

October 27, 2026

Peculiar Adirika

NRS VAT rate remains 7.5%, the agency says, while addressing concerns over bank deductions, loans and the implementation of Nigeria’s tax reforms

The Nigeria Revenue Service (NRS) has assured taxpayers that Nigeria’s standard Value Added Tax (VAT) rate remains 7.5 per cent, while addressing concerns over the implementation of the country’s new tax reforms.

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The assurance was given by the Tax Administrator responsible for Kano, Jigawa and Katsina states, Samaila Abdullahi, during an NRS stakeholders’ engagement and tax reform sensitisation programme in Kano.

Abdullahi said concerns raised by individuals, traders, business owners and other stakeholders about the new tax laws were understandable, particularly questions relating to bank transactions, loans, family transfers, business income and the potential impact on small businesses.

He urged taxpayers to understand the reforms through the provisions of the law rather than rely on assumptions or misinformation.

According to him, the tax laws do not automatically authorise deductions from personal bank accounts.

He stressed that tax collection and recovery must follow the applicable legal provisions and procedures.

Abdullahi also clarified that money received as a loan should not automatically be classified as business income or profit, explaining that proper documentation is essential to establish the nature of a transaction.

“For instance, when a trader receives a loan of N500,000, the amount should not automatically be treated as N500,000 in sales or profit, provided the transaction is properly documented,” he said.

The NRS official’s comments were aimed at addressing public concerns about how the new tax framework would affect personal finances and business transactions.

He emphasised the importance of distinguishing between taxable business receipts and other funds, such as documented loans, when determining a taxpayer’s obligations.

The clarification comes amid heightened public interest in Nigeria’s tax reforms and questions about their implications for individuals, traders and small businesses.