The National Pension Commission (PenCom) has mandated that all Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) must meet new capital requirements by December 31, 2026.
Under the updated guidelines, PFAs must increase their capital from the current ₦5 billion to ₦20 billion. Meanwhile, PFCs must raise their capital base to ₦25 billion.
Revised Capital Framework
- PFAs with assets under management (AUM) above ₦500 billion will need ₦20 billion plus 1% of the excess (AUM – ₦500 billion).
- PFAs with AUM below ₦500 billion must hold a minimum of ₦20 billion.
- For PFCs, the required capital is ₦25 billion plus 0.1% of Assets Under Custody (AUC).
- New PFAs or PFCs applying for licensing must meet these thresholds immediately.
The capital review is backed by sections 60(1)(b), 62(b), and 115(1) of the Pension Reforms Act 2014.
According to PenCom, the changes reflect the exponential growth in industry assets and the need for stronger financial resilience, according to Leadership News
Any shortfall identified in audited financial statements must be corrected within 90 days.
PenCom also plans to review the required minimum capital every two years to keep pace with evolving risks.
