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The National Pension Commission (PenCom) has acceptable December 31, 2026, arsenic the deadline for the Pension Fund Adminstrators (PFAs) and Pension Fund Custodians (PFCs) to recapitalise to a caller superior threshold of N20bn.
In a circular issued by the pension manufacture regulator titled ‘Revised Minimum Capital Requirements for Licensed Pension Fund Administrators and Pension Fund Custodians’
and sighted by LEADERSHIP connected Saturday, PFAs are present required to upgrade their superior from the existent N5billion to N20billion nether 14 months portion PFCs volition present upgrade superior to N25billion.
The pension manufacture started successful 2004 with N2billion superior basal but was raised to N5billion successful 2021 earlier the latest summation to N20billion, translating to 300 per cent summation successful capitalisation.
The circular signed by the director, Surveillance Department of PenCom, A. M. Saleem said, the committee has reviewed the minimum superior requirements for PFAs and PFCs pursuant to Sections 60 (1) (b), 62 (b) and 115 (1) of the Pension Reforms Act (PRA) 2014.
To this end, PFAs with assets nether absorption (AUM) supra N500 cardinal and supra volition necessitate N20 cardinal +1 percent of (AUM-N500 billion), portion PFAs with AUM beneath N500 cardinal volition necessitate N20 cardinal minimum capital.
For caller PFAs, the superior request for licensing is N20 billion.
The regulator added that the minimum superior for Special Purpose PFAs are – NPF Pensions Limited N30 cardinal and the Nigerian University Pension Management Company Limited N20 billion.
Accordingly, PenCom said the revised minimum superior request for Licensed PFCs shall beryllium based connected Shareholders’ Fund, unimpaired by losses.
Hence, it noted that the workout for PFCs volition beryllium determined arsenic follows: “N25 cardinal + 0.1% of AUC. The minimum superior request for caller PFC License shall beryllium N25 cardinal with contiguous effect. The timeline for compliance with the revised superior requirements for some Licensed PFAs and PFCs shall beryllium 31 December 2026.”
Stating that the reappraisal was to heighten the fiscal stability, operational resilience, amended work transportation and semipermanent viability of the PFAs and PFCs, Saleem, successful the circular, noted that the superior request was reviewed successful enactment with planetary champion practice, which ensures that superior is proportionate to the hazard vulnerability of the Pension Fund Operator.
“The caller exemplary aligned the superior requirement
with the Pension Asset Under Management (AUM) and Assets Under Custody (AUC) of the PFAs and PFCs respectively,” the regulator said.
Since the past reappraisal of the minimum superior request for PFA concern successful April 2021, Saleem said, the pension manufacture has witnessed important changes successful presumption of the geometric maturation of the assets nether absorption (AUM) and analyzable operating environment, macroeconomic pressures requiring deployment of capable capital.
The revised superior request would subsequently beryllium monitored by the committee each 2 years based connected the audited fiscal statements of the Pension Fund Operator and immoderate shortfall shall beryllium made up wrong 90 days, it pointed out.
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