…The revised thresholds, effective immediately for new entrants and with a compliance deadline of December 31, 2026, for existing operators, will be enforced through biennial audits, with shortfalls to be addressed within 90 days.
MON SEPT 29 2025-theGBJournal| The National Pension Commission (PenCom) recently announced a landmark revision of capital requirements for operators in Nigeria’s pension industry, significantly raising the minimum thresholds for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) in a move designed to bolster financial stability, enhance risk management, and align with global best practices.
PFAs will now be required to hold a minimum of N20 billion in capital, up from N2 billion, with those managing assets above N500 billion mandated to maintain an additional 1% of the excess AUM, while Special Purpose PFAs such as NPF Pensions Limited must hold N30 billion.
For custodians, the capital requirement has been increased to N25 billion plus 0.1% of Assets Under Custody (AUC), reflecting the exponential growth in pension assets and rising operational demands including technology deployment, cybersecurity, and workforce capacity.
The revised thresholds, effective immediately for new entrants and with a compliance deadline of December 31, 2026, for existing operators, will be enforced through biennial audits, with shortfalls to be addressed within 90 days.
PenCom emphasized that the reform, anchored in the Pension Reform Act 2014, is critical to sustaining the 21-year-old Contributory Pension Scheme (CPS), improving service delivery, and ensuring operators remain resilient in a dynamic macroeconomic environment.
Notably, this announcement came just a day after PenCom introduced a new framework allowing pension funds to invest in gold through tradable Gold Receipts listed on SEC-recognized exchanges, offering a liquid and secure means of diversifying portfolios and managing concentration risks.
Collectively, these measures underscore PenCom’s push to strengthen the long-term viability of the pension system, expand investment options, and safeguard retirement benefits for millions of Nigerians.-Analysis provided by Comercio Partners
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