PenCom Announces Recapitalisation to Bolster Pension Industry Stability and Trust
The National pension Commission (PenCom) is implementing significant recapitalisation reforms for Pension Fund Administrators (PFAs) and pension Fund Custodians (PFCs) aimed at strengthening the nigerian pension industry, protecting contributor savings, and maintaining public trust. The reforms were highlighted during recent events focused on customer service and industry stability.
According to pencom officials, the move is a crucial step in ensuring the long-term health and resilience of the pension system.”Institutionalisation and governance reforms together are necessary to protect contributors’ savings and sustain public trust,” stated a PenCom representative. “This is a reminder that 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 to those we serve.”
PenCom Director-General, Oloworaran, assured stakeholders that the Commission will continue to prioritize service excellence through ”digital innovation, stronger compliance mechanisms, and improved customer dialog.”
The need for customer-centric reforms was also emphasized by Mrs. By the danger of Kincodee, Head of Operations at SERVICOM, represented by Mr. Duruba Sesugh, who commended PenCom’s focus on service delivery and citizen-focused initiatives. Akinbodewa noted that the theme of this year’s customer Service Week, “mission Possible,” reflects the determination and teamwork needed to improve customer service across Nigeria’s public institutions, adding that “determination, collaboration, and data-driven decisions are key to achieving service excellence and maintaining the trust of pension contributors.”
The recapitalisation comes as Nigeria’s total pension assets continue to grow. As of August 2025, pension assets surpassed N25 trillion, reaching N25.89 trillion, having first crossed the N25 trillion mark in July 2025. between June and August 2025, pension funds grew by approximately N1.26 trillion (5.14 per cent), reflecting increased employer compliance and improved investment returns within the regulated pension space.
Under the new directive, the minimum capital requirement for pfas has been increased to N20 billion, while PFCs must now hold a minimum capital of N25 billion. PenCom has also introduced a tiered classification system for PFAs based on Assets under Management (AUM):
* Category A: PFAs managing N500 billion and above will require a minimum capital of N20 billion plus one per cent of AUM exceeding N500 billion.
* Category B: PFAs with AUM below N500 billion must raise their capital to N20 billion.
* Category C: Special-purpose PFAs, including NPF Pensions Limited (N30 billion minimum) and the Nigerian University Pension Management Company Limited (N20 billion minimum), have specific capital requirements.
New entrants to the industry will also be required to meet a minimum capital requirement of N20 billion, effective instantly. For PFCs, the minimum capital has been revised to N25 billion plus 0.1 per cent of assets under custody – a significant increase from the previous N2 billion requirement set in 2004.
PenCom has set a deadline of December 31, 2026, for operators to meet the new capital thresholds. The Commission believes this recapitalisation effort will create a more resilient pension industry,better equipped to protect contributors’ funds and expand pension coverage throughout Nigeria.