The National Pension Commission (PenCom) has disclosed that about 11 Pension Fund Administrators (PFAs) had met the minimum capital base of N5 billion specified by the commission as at the end of November, 2021.
Head, Surveillance, PenCom, Mr Ehimeme Ohioma, stated this in Lagos while responding to the 2021 media parley organised by the Pension Fund Operators Association of Nigeria (PenOp). The theme of the workshop was: Micro Pension – Challenges and Opportunities .
Recalled that PenCom had directed PFAs to increase their minimum share capital base from the existing N1 billion to N5billion with the deadline expiring on April 12, 2022.
Ohioma said that the objective of the recapitalisation was to improve the financial stability and operational efficiency in the industry.
He explained that the directive was right, as the last recapitalisation in the industry was done in 2011 .
”This is the second recapitalisation done in the industry since the inception of the current Contributory Pension Scheme (CPS).
”It is obvious that the industry has grown, assets and contribution have increased.
“There is need for this. They need to retain the real skilled workers. We need to attract talent. There is need for digitalization. This will cost money too and ensure efficiency, especially with the COVID-19.
“There have been ongoing consolidation within the industry, so we do not expect any challenges in the industry, as regards the recapitalisation.
“On or before February 2022, we expect a picture of what the industry is going to look like before the April deadline,” he said.
