Access ARM Pensions Launches With N3trn Assets Under Magt

Access ARM Pensions Limited has officially launched, marking a significant merger between Access Pensions and ARM Pension Managers (PFA) Limited. The newly formed entity, with over N3 trillion in Assets Under Management (AUM), represents a formidable presence in Nigeria’s pension industry, accounting for 15 per cent of total industry assets and over 20 per cent of its customer base.

The merger received approval from the National Pension Commission (PenCom), which expects the union to result in economies of scale, enhanced operational efficiency, and improved service delivery to Retirement Savings Account (RSA) holders.

At the launch event in Abuja, managing director of Access Pensions Limited, Dave Uduanu, highlighted the strength of the new organisation, supported by Access Corporation. He noted that the entity is well-capitalised, with total shareholders’ funds exceeding N20 billion—significantly above the minimum regulatory requirements.

Uduanu emphasised the company’s commitment to collaborate with regulators and partners to leverage technology aimed at expanding pension coverage into Nigeria’s vast informal sector through a strategic onboarding process for micro-pensions.

Reflecting on the legacy of the two companies, Uduanu stated, “Over the past 19 years, we have thrived through determination, sustainable growth, and customer loyalty. This merger represents a monumental shift in the pension industry. By combining Access and ARM, which ranked second and fourth in the sector, we have created a PFA with N3 trillion in AUM.”

He described the event as a new era for Nigerian pensions, uniting two reputable brands with histories dating back to 2004. He noted that since the inception of the Contributory Pension Scheme (CPS), the industry has experienced impressive growth, with average annual increases of 15-20 per cent. As of July 2024, total pension assets in Nigeria stood at N20.9 trillion (approximately $13 billion), serving over 10.4 million Nigerians.

Uduanu asserted that both legacy companies have established substantial brand equity and a track record of strong investment performance, stating, “We are coming together to deliver excellent pension solutions to our clients.”

He elaborated on the rationale behind the merger, highlighting the unique positioning of the new entity in a changing pension landscape. “Advancements in medical science have resulted in longer life expectancies compared to 20 years ago, presenting new challenges and demands for transparency and efficiency in pension fund management,” he said.

“This merger is not just a business transaction; it is a strategic alignment of strengths, expertise, and resources. Together, we exemplify what can be achieved when industry leaders unite with a shared vision,” Uduanu added, noting that the new entity serves over 2 million RSA holders.

Acting chairman of Access ARM Pensions Limited, Austin Opara reiterated the board’s commitment to establishing a strong and successful brand. He assured customers of the company’s reliability, growth, and dedication to service. “For those who are not yet satisfied, we will work to earn your trust,” he stated, reinforcing the company’s commitment to stakeholders to grow funds and assets while recognizing and rewarding staff contributions.

Former managing director of ARM Pension Managers Limited, Wale Odutola, expressed optimism about the merger’s potential to shape the future of pension fund management in Nigeria. “We are excited to join forces with Access Pensions to create a stronger organisation. Together, we will drive innovation and excellence in pension fund management,” he said.

The event also paid tribute to the former group chief executive of Access Bank, late Herbert Wigwe whose vision led to the creation of Access Pensions in December 2022 through the merger of Sigma Pensions and First Guarantee Pension, followed by the acquisition of ARM Pensions in January 2024. Uduanu described Wigwe as a pioneer in the financial industry, who fostered innovation and leadership in retirement planning in Nigeria.