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.

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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).

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