The National Pension Commission (PenCom) has reiterated its resolve to enforce the ongoing recapitalisation of Pension Fund Administrators (PFAs), stressing that operators who fail to meet the revised capital thresholds by June 2027 will forfeit their operating licences.
Omolara Oloworaran, director general of PenCom,disclosed this at the 2025 Pension Revolution Summit and Media Conference held in Lagos. According to her, the commission has clearly communicated the new requirements to all licensed PFAs, leaving no ambiguity about the consequences of non-compliance.
“We have communicated the requirements to PFAs, and we expect every PFA to be compliant by June 2027. Any PFA that is not compliant will have its licence revoked. It’s that simple,” Oloworaran stated.
She explained that operators unable to independently meet the new capital thresholds still have strategic options, including mergers and acquisitions, to remain in business within the stipulated timeline. Based on ongoing engagements with industry players, the PenCom boss expressed confidence that all PFAs would either recapitalise on their own or consolidate with partners.
“From our engagements, it is clear that PFAs will either meet the requirements independently or find partners to merge with. As a result, the industry should expect some level of mergers and acquisitions,” she said, adding that the recapitalisation exercise is progressing as planned.
Oloworaran noted that the industry largely aligns with the commission’s position, emphasising that recapitalisation is no longer optional.
PenCom had, in a circular dated September 26, 2025, announced a revised minimum capital framework for Licensed Pension Fund Administrators (LPFAs) and Pension Fund Custodians (PFCs). Under the new regime, PFAs with assets under management (AUM) below N500 billion are required to maintain a minimum capital base of N20 billion. PFAs managing AUM of N500 billion and above must also maintain a N20 billion base capital, in addition to one percent of the portion of their AUM exceeding N500 billion.
Beyond recapitalisation, the PenCom director general used the platform to outline key achievements of the commission over the past year, highlighting reforms aimed at deepening efficiency, inclusiveness and retiree welfare in Nigeria’s pension system.
A major highlight was the inauguration of the Board of Trustees for PenCare, an industry-wide initiative designed to provide free and accessible healthcare services to low-income retirees. Oloworaran described PenCare as a landmark intervention that addresses one of the most persistent anxieties facing retirees—medical expenses.
“Retirement should be a season of peace, not a period defined by anxiety over medical bills,” she said. She disclosed that the PenCare pilot scheme is scheduled to commence in March next year, with an initial target of enrolling 30,000 retirees across Nigeria’s six geopolitical zones. According to her, the pilot phase is expected to strengthen collaboration and leadership within the pension industry, with gradual expansion planned to accommodate more retirees over time.
The DG explained that PenCare is a core component of the broader Pension Revolution 2.0 reforms, which have driven notable structural changes across the pension landscape in the last year. These reforms, she said, are designed to make the pension system more responsive, inclusive and technologically driven.
Among the initiatives rolled out are the full automation of critical pension processes, the introduction of accredited pension agents to improve service delivery, and the rebranding of the Micro Pension Plan as the Personal Pension Plan. The rebranded scheme is targeted at expanding pension coverage among artisans, traders, gig workers and other participants in Nigeria’s vast informal sector.
Oloworaran also highlighted progress in addressing long-standing pension liabilities, describing the clearance of pension backlogs as a major milestone. She disclosed that President Bola Ahmed Tinubu approved and disbursed N758 billion to settle all outstanding pension liabilities, a move she said underscored the federal government’s commitment to the welfare of workers and retirees.
In addition, she reaffirmed PenCom’s commitment to the zero-waiting-time policy for approved retirement benefits, which took effect in July 2025. Under the policy, retirees are guaranteed immediate access to their entitlements upon retirement, eliminating delays that had previously characterised benefit payments.
On regulatory enforcement, the PenCom chief noted significant gains in employer compliance, resulting in pension recoveries amounting to N4.04 billion between January and November 2025. She said this represents a 180 percent increase compared to recoveries recorded in 2024.
According to her, the most remarkable improvement occurred in the third quarter of 2025 alone, when N2.06 billion was recovered, nearly 150 percent of the total recoveries achieved throughout the entire 2024 financial year.
She attributed the sharp turnaround to a compliance circular issued in the second quarter of 2025, which linked the issuance of Pension Clearance Certificates to active participation across the pension industry value chain.
“The impact was immediate and unmistakable,” Oloworaran said, noting that employer compliance behaviour shifted significantly following the policy change.
Overall, she maintained that PenCom remains focused on strengthening the pension system through firm regulation, strategic reforms and stakeholder collaboration, as the commission pushes towards a more resilient, inclusive and retiree-centred pension industry.
