The National Pension Commission (PenCom) has announced new capital requirements for pension fund administrators (PFAs) and pension fund custodians (PFCs) as part of its ongoing Pension Revolution 2.0 initiative.
PenCom increased the minimum capital threshold from N2 billion to N20 billion for PFAs managing assets of N500 billion and above, and for PFCs with custody of less than N500 billion in assets.
Special Purpose PFAs, such as the Nigerian Police Force Pensions Limited, are required to hold N30 billion in capital, while the Nigerian University Pension Management Company Limited must maintain a minimum of N20 billion.
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The Commission has set 31 December 2026 as the deadline for existing operators to meet the new capital requirements. New licence applicants will be subject to the updated thresholds immediately.
Highlighting the rationale behind the changes, PenCom noted that the pension sector’s operating environment has evolved significantly over the past 21 years, necessitating a reassessment of capital adequacy to ensure financial stability and effective risk management.
PenCom will monitor compliance every two years through audited financial statements, and any shortfall must be addressed within 90 days of notification.
