The National Pension Commission has moved the pension industry recapitalisation deadline to June 2027, extending it from December 2026.
The Director-General of the commission, Ms Omolola Oloworaran, gave this hint on Thursday during the 2025 PenCom Media Conference with the theme “Pension Revolution Summit: A 365 Days Scorecard’ in Lagos, debunking speculations that the recapitalisation exercise had been suspended.
The shift in the recapitalization of the pension firms may not be unconnected to the fact that many licensed pension fund operators were grappling with challenges that could make it impossible to meet the recapitalization timeline.
Apparently conscious of the ugly situation, the PenCom had, in the circular announcing the new minimum capital requirement (MCR) stated: “The timeline for compliance with the revised capital requirements for both licensed PFAs and PFCs shall be 31 December 2026.”
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Under the new directive, three categories were created, comprising Category A which are PFAs with Assets Under Management of N500bn and above, that are expected to have a minimum capital of N20bn + one per cent of AUM above N500bn; Category B comprises PFAs with AUM below N500bn, who must raise their capital base to N20bn; and Category C are special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30bn. The Nigerian University Pension Management Company Limited had its minimum capital fixed at N20bn.
Speaking at the media conference, the PenCom boss clarified: “Recapitalisation has not been suspended. We have communicated the requirements to the PFAs, and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence.
“You may see some mergers and acquisitions in the industry but what is clear is that the recapitalisation exercise is on track and the industry agrees with us”, she added.
Oloworaran pointed out that the commission’s engagements with industry operators indicated broad acceptance of the policy, with many PFAs already taking steps to raise additional capital or explore mergers and acquisitions.
In addition, she noted that improving employer compliance with pension remittances remained a major focus for the commission and had led it to the signing of a Memorandum of Understanding (MoU) with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and that the PenCom was collaborating with labour unions to enforce compliance.
The Director-General said: “From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees.”
She maintained that the commission’s enforcement measures were already yielding results, with recoveries from defaulting employers now significantly increasing.
Oloworaran also spoke on the launch of the pilot Pension Industry Healthcare Initiative in March 2026 targeted at about 30,000 of the lowest-earning retirees nationwide, adding that the initiative is designed to ease the healthcare burden of low-income retirees and ensure that retirement years were lived with dignity.
This is even as she disclosed that the commission had inaugurated the Board of Trustees of PenCare to drive the industry-wide intervention, which would provide free and accessible healthcare services to eligible retirees.
She expatiated: “Retirement should be a season of peace, not a period defined by anxiety over medical bills. I am happy to announce that the pilot will be launched in March next year, and we hope to enrol about 30,000 retirees across the six geopolitical zones of the country.”
