No fewer than 11 Pension Fund Administrators(PFAs) have upgraded their shareholders’ fund from N1billion to N5 billion, four months to April 2022 deadline given to all PFAs in the country to do so, LEADERSHIP learnt.
The National Pension Commission(PenCom) had earlier mandated all the 22 Pension fund administrators in the country to raise additional N4 billion capital on the existing minimum capital of N1billion, such that, by April 2022, each of them has a minimum shareholders fund of N5billion.
Findings show that, Stanbic IBTC Pension Managers, ARM Pension Managers Limited, NPF Pension Limited, First Guarantee Pension Limited, Leadway Pensure Limited, Premium Pension Limited, among others, have so far recapitalise to the new threshold.
Hence, the remaining 11 PFAs have from now till April 2022 to recapitalise to the new threshold.
Confirming this development at the 2021 Pension Fund Operators Association of Nigeria(PenOp) Media Parley in Lagos at the weekend, the head Surveillance, PenCom, Mr Ehimeme Ohioma, disclosed that about 10 or 11 PFAs have increased minimum capital base to N5 billion.
To her, the objective of the recapitalisation exercise was to improve the financial stability and operational efficiency in the industry.
According to her, “this is the second recapitalisation exercise in the industry within the current CPS. It is the because the industry has grown and the assets has grown, hence, there is need for this.
“They(PFAs) need to retain the real skilled workers. We need to attract talent. There is need for digitalisation. This will cost money too and ensure efficiency especially with the Covid-19. So, the exercise is ripe and we are looking at having big players in the industry,” she stressed.
Similarly, the president, PenOp, Mr. Wale Odutola, assured that the remaining PFAs would have concluded their recapitalisation exercise, latest by February, 2022, believing that, all the PFAs will scale through as they are all at an advanced stage of their recapitalisation exercise in the industry.
PenCom had earlier said it increased the shareholders’ fund of Pension Fund Administrators (PFAs) from N1 billion to N5 billion so as to boost their capacity in terms of operational efficiency and service delivery.
PenCom stated this in a circular entitled: Revised Minimum Share Requirement for Licensed Pension Fund Administrators (PFAs), dated April 29, 2021 and sent to managing directors/chief executive officers of all licensed pension fund operators.
“The increase in the minimum regulatory capital is necessitated by the need to improve the capacity of PFAs, in terms of operational efficiency and effectiveness as well as service delivery,” PenCom stated.
The pension sector regulator noted that its board also approved a 12-month transition period, effective April 27, 2021, within which PFAs are to meet the new minimum capital.
“The board of the commission at its 48th meeting on April 27, 2021 approved the increase of the minimum regulatory capital (shareholders’ fund) requirement for PFAs from the current N1billion to N5 billion, unimpaired losses,” it said.