The National Pension Commission (PenCom) has announced new minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), in a move aimed at reinforcing the financial resilience of Nigeria’s fast-growing pension industry.
In a circular signed by Mr. Saleem Abdulrahman, Director of Surveillance at PenCom, the commission said the review was conducted in line with the Pension Reform Act 2014 and global best practices.
Under the new regime, PFAs with Assets Under Management (AUM) of ₦500 billion and above will now be required to maintain a minimum of ₦20 billion, plus one per cent of the excess above ₦500 billion. Those with AUM below ₦500 billion are expected to maintain a minimum capital base of ₦20 billion. In addition, special-purpose PFAs such as NPF Pensions Ltd. will require ₦30 billion, while the Nigerian University Pension Management Company Ltd. will maintain ₦20 billion. The minimum capital for new PFA licences has also been pegged at ₦20 billion with immediate effect.
For Pension Fund Custodians, the capital requirement has been raised significantly from the ₦2 billion set in 2004 to ₦25 billion plus 0.1 per cent of Assets Under Custody (AUC). Similarly, new PFC licences will attract a minimum capital requirement of ₦25 billion.
PenCom explained that the adjustments were necessary to reflect the exponential growth of pension assets, the increasing complexity of operations, and the need for robust technology, cybersecurity and improved service delivery.
The commission has given operators until December 31, 2026, to comply with the new thresholds. Compliance will thereafter be monitored biennially through audited financial statements, with any shortfalls expected to be rectified within 90 days.
Industry analysts say the new requirements are likely to trigger consolidation in the pension sector, as smaller operators may need to merge or seek new equity injections to meet the higher thresholds. At the same time, the reforms are expected to strengthen risk management and investor confidence, given that Nigeria’s pension assets have surpassed ₦20 trillion as at 2025.
