Ten Pension Fund Administrators (PFAs) have recapitalised as they meet and exceed the minimum capital base of N5 billion requirement of the National Pension Commission (PenCom).
This is coming three months to the deadline of April 12, 2022 stipulated by the regulator, PenCom to PFAs to increase their minimum share capital basefrom the existing N1 billion to N5 billion.
The Head, Surveillance, PenCom, Ehimeme Ohioma, spoke on the sidelines of the 2021 media parley organised by the Pension Fund Operators Association of Nigeria (PenOp) with the theme: Micro Pension – Challenges and Opportunities.
Ohioma said that the objective of the recapitalisation was to improve the financial stability and operationalefficiency 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 digitalisation. This will cost money too and ensure efficiency, especially with the COVID-19.
“There has 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.
[Nation]
