1 month ago
19
By Rosemary Iwunze
The National Pension Commission, PenCom, has directed Pension Fund Administrators, PFAs, to rise their superior basal to N20 cardinal from N5 cardinal by December 2026.
PenCom besides directed Pension Fund Custodians, PFCs, to rise theirs’ to N25 cardinal from N2 billion, portion the NPF Pensions Limited, which caters lone to the Police Force, is to rise theirs’ to N30 billion.
In a circular titled: “REF: PenCom/INSP/Surv/2025/1255”
released connected Monday and issued to each Licensed Pension Fund Administrators and Pension Fund Custodians, PenCom noted that the reappraisal is to heighten the fiscal stability, operational resilience, amended work transportation and semipermanent viability of the PFAs and PFCs.
The circular stated: “The Commission has reviewed the minimum superior requirements for PFAs and PFCs pursuant to Sections 60 (1) (b), 62 (b) and 115 (1) of the Pension Reform Act (PRA) 2014. The reappraisal is to heighten the fiscal stability, operational resilience, amended work transportation and semipermanent viability of the PFAs and PFCs.
“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 request with the Pension Asset Under Management (AUM) and Assets Under Custody (AUC) of the PFAs and PFCs respectively.
“Since the past reappraisal of the minimum superior request for PFA concern successful April 2021, the pension manufacture has witnessed important changes successful presumption of the geometric maturation of the AUM and analyzable operating environment, macroeconomic pressures requiring deployment of capable capital. PFAs are truthful required to support capable superior to prolong the achievements of the Contributory Pension Scheme (CPS) aft 21 years of existence, enactment ongoing pension betterment initiatives aimed astatine positioning the Nigerian pension manufacture to respond to macroeconomic pressures, and deployment of capable resources to efficaciously money operations, amended work transportation and guarantee semipermanent sustainability.
“Accordingly, the revised minimum superior request of PFAs shall beryllium measured arsenic the Shareholders’ Fund unimpaired by losses, little the Statutory Reserve Fund, arsenic stratified arsenic follows: PFAs with AUM of N500 cardinal and above, N20 cardinal + 1% of AUM. PFAs with AUM beneath N500 billion, N20 billion. Special Purpose PFAs: NPF Pensions Limited, N30 billion. Nigerian University Pension Management Company Limited, N20 billion. The minimum superior request for caller PFA License shall beryllium N20 cardinal with contiguous effect.
“The minimum superior request for PFC concern had not been reviewed since it was established astatine N2 cardinal successful 2004. The operating scenery of PFC concern has evolved importantly implicit 21 years, marked by exponential maturation successful AUC and accrued complexity of operational activities requiring deployment of robust technology, cybersecurity and unit welfare.
These developments underscore the request to reassess the adequacy of the existing superior threshold to guarantee continued fiscal stableness and effectual hazard absorption successful the operations of the PFC business.
“Accordingly, the revised minimum superior request for Licensed PFCs shall beryllium based connected Shareholders’ Fund, unimpaired by losses, 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.
“The revised superior request would subsequently beryllium monitored by the Commission each 2 years based connected the audited fiscal statements of the Pension Fund Operator and immoderate shortfall shall beryllium made up wrong 90 days.”
The station PenCom directs PFAs, PFCs to summation superior earlier 2026 twelvemonth end appeared archetypal connected Vanguard News.
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