The National Pension Commission has announced fresh capital requirements for pension fund administrators and pension fund custodians.
The Commission raised the minimum capital threshold to N20 billion from N2 billion.
PenCom disclosed this in a recent circular as part of its Pension Revolution 2.0 initiative.
This applies to PFAs with N500 billion and above assets under management and PFCs with below N500 billion assets under custody.
It added that Special Purpose PFAs, such as Nigerian Police Force Pensions Limited, must hold a N30 billion capital requirement, while the Nigerian University Pension Management Company Limited is required to maintain N20 billion.
The Commission fixed December 31, 2026, as the deadline to achieve the minimum capital requirements.
“The operating landscape of PFC business has evolved significantly over 21 years.
“These developments underscore the need to reassess the adequacy of the existing capital threshold to ensure continued financial stability and effective risk management.”
“The revised capital requirements for both PFAs and PFCs will take effect immediately for new licences, while existing operators have until December 31, 2026, to comply. PenCom will monitor compliance every two years based on audited financial statements, and any shortfall must be rectified within 90 days,” the Commission stated.
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