Joy Agwunobi
The National Pension Commission (PenCom) has reaffirmed that its ongoing recapitalisation programme for licensed pension fund operators is designed to strengthen the financial resilience of the industry, ensure greater stability, and safeguard the nation’s growing pension assets, which recently crossed the N25 trillion threshold.
Speaking at a seminar in Abuja to mark the 2025 Customer Service Week, Omolola Oloworaran, director-general of PenCom, represented by Samuel Uwandu, acting commissioner, inspectorate at the commission, said the recapitalisation policy is a core part of reforms under the “Pension 2.0” agenda aimed at modernising pension administration, broadening inclusion, and improving customer experience.
“The recapitalisation requirement for Licensed Pension Fund Operators is a major step towards strengthening the financial resilience of the pension industry by ensuring operators are adequately capitalised to secure the pension assets under management. The Commission is safeguarding all pension assets and promoting a more stable, efficient, and competitive industry,” she stated.
Under the new directive, PenCom increased the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), setting compliance deadlines for December 31, 2026.
PFAs are now grouped into three categories: category A: PFAs with Assets Under Management (AUM) of N500 billion and above must maintain a minimum capital of N20 billion plus one percent of AUM in excess of N500 billion. Category B: PFAs with AUM below N500 billion must raise their capital base to N20 billion, while Category C includes special-purpose PFAs such as NPF Pensions Limited and the Nigerian University Pension Management Company Limited, with minimum capital pegged at N30 billion and N20 billion, respectively.
For PFCs, whose capital base had remained at N2 billion since 2004, PenCom revised the minimum requirement to N25 billion plus 0.1 percent of Assets Under Custody, measured as shareholders’ funds unimpaired by losses. The new threshold for any fresh PFA licence has also been set at N20 billion with immediate effect.
Oloworaran explained that recapitalisation is only one pillar of the broader Pension 2.0 initiative anchored on innovation, inclusion, and integrity. As part of the reform agenda, PenCom has issued guidelines allowing Retirement Savings Accounts (RSAs) to be held in foreign currency, creating a pathway for Nigerians in the diaspora and employees of foreign companies to participate in the Contributory Pension Scheme (CPS).
The commission has also introduced the Personal Pension Plan, a product designed to bring self-employed and informal sector workers into the pension system. To ensure broad coverage, accredited pension agents have been empowered to market and sell the plan nationwide, extending pension services to underserved communities.
In addition, PenCom has rolled out revised Guidelines for Corporate Governance for pension operators, a measure aimed at strengthening accountability, transparency, and ethical conduct across the industry.
“The Personal Pension Plan embodies the spirit of ‘Mission Possible’ as it breaks long-standing barriers to financial inclusion and ensures that every Nigerian, regardless of income or occupation, can build a secure retirement,” the DG noted.
She added that PenCom’s reform drive was not merely about regulations but about the people whose savings fuel the system.
“Behind every regulation and every reform is a human story of individuals who have entrusted their future to the pension system. Our duty is to ensure we justify that trust through efficiency, transparency, and responsiveness,” she said.
Ngozi Akinbodewa, head of operations at SERVICOM, represented by Duruba Sesugh, desk officer at SERVICOM, also emphasised that customer-centred reforms are vital to sustaining trust in the pension sector. She praised PenCom’s leadership for its citizen-focused approach, noting that this year’s Customer Service Week theme, “Mission Possible”, reflected the sector’s determination to convert challenges into opportunities through compliance, collaboration, and data-driven decision-making.
The reform momentum comes at a time when pension assets have reached historic highs. Latest data published by PenCom show that total pension fund assets rose to N25.89 trillion at the end of August 2025, from N25.79 trillion in July, after crossing the N25 trillion mark for the first time that month. This represents a combined increase of about N1.26 trillion (5.14 percent) from the N24.62 trillion recorded in June.
The continued growth in pension assets, analysts say, underscores the importance of regulatory measures such as recapitalisation and governance reforms in protecting contributors’ funds while building a more competitive and inclusive industry.
PenCom has assured stakeholders that it will continue to drive service excellence through stronger digital platforms, improved compliance monitoring, and open engagement with the public.
