The National Pension Commission (PENCOM) has extended the deadline for compliance with its revised minimum capital requirements for licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), granting existing operators an additional six months to meet the new standards.
In an addendum signed by the commission’s Director of the Surveillance Department, A. M. Saleem, released after its earlier circular dated 26 September 2025 (Ref: PenCom/INSP/Surv/2025/1255), the Commission stated that the new compliance deadline had now been shifted from December 31, 2026 to June 30, 2027.
The addendum outlines several important updates to the capital requirements framework, including Inclusion of Statutory Reserve Fund (SRF): The SRF, which was previously excluded, will now be counted as part of the Shareholders’ Funds for all categories of PFAs (A, B, and C). This move is expected to ease capital adequacy pressures on operators.
It also provides for Exclusion of Specific Funds from AUM Calculations: For PFAs under Category A, the following funds will be excluded when calculating the 1% capital surcharge based on Assets Under Management (AUM), namely Fund V (Personal Pension Plan), Fund VII (Foreign Currency Fund), Approved Existing Schemes, and Additional Benefit Schemes
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According to the circular, these exclusions aim to refine the capital surcharge mechanism and ensure a more accurate reflection of risk exposure.
The commission restated its commitment to rigorous oversight by monitoring compliance biannually through audited financial statements, adding that any shortfall in meeting the capital requirements must be rectified within 90 days of notification by the PFA or PFC.
While stating that the revised capital requirements remain effective immediately for new licenses, the Commission emphasized its stance on maintaining financial stability and integrity within the pension sector.
It would be recalled that last September, the commission announced a comprehensive revision of the capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), raising the minimum threshold for PFAs to N20 billion.
According to the management, the initiative is aimed at strengthening financial stability and operational resilience in Nigeria’s pension industry.
In a circular titled “Revised Minimum Capital Requirements for Licensed Pension Fund Administrators and Pension Fund Custodians”, the PenCom stated that PFAs with Assets Under Management (AUM) of N500 billion and above must maintain a capital base of N20 billion plus 1% of the excess AUM beyond N500 billion.
Also, it also required all PFAs with AUM below N500 billion to meet the new N20 billion minimum just as Special Purpose PFAs, such as NPF Pensions Limited, must hold N30 billion; while the Nigerian University Pension Management Company Limited was required to have a minimum of N20 billion.
