Why 14 PFAs Are Still Jostling To Meet N5bn Recapitalisation

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By Favour Nnabugwu

 

Barely eight months into the pension industry recapitalisation announced by the National Pension Commission (PenCom), no fewer than 14 out of 22 pension fund administrators (PFAs) are yet to pull a string from their former capital position.

Recall that PenCom had in April 2021 announced a capital increase for PFAs from N1billion to N5billion, a development that was applauded by industry watchers who said the increase was long overdue.

They are having upto June 30 2022 to recapitalize, but virtually eight months into the exercise, five PFAs are still at the bottom of the ladder with little above the current status of N1billion.

On the list are AIICO Pension Fund Managers Limited, N1.76 billion; OAK Pension Limited, N1.73 billion; AXA Mansard Pension, now Tangerine Pension Limited, N1.70 billion; Veritas Glanvill Pension Limited, N1.53 billion; IEI Anchor Pension Managers Limited, N1.37 billion; Investment One Pension Managers Limited, N1.26 billion and Radix Pension Managers Limited, N985.68 million; APT Pension Fund Managers Limited, N2.68 billion.

However, Stanbic IBTC Pension Managers Limited and Trustfund Pension Plc take the lead with N64.45 billion and N12.49 billion shareholders’ fund according to their respective 2020 financial reports.

Also on the lead category are ARM Pension Managers Limited with N9.04 billion shareholders’ fund; NPF Pension Limited, N8.01 billion; First Guarantee Pension Limited, N7.25 billion and Leadway Pension Limited, N7.06 billion.

While Premium Pension Limited has N5.31 billion; Crusader Sterling Pension Limited, N4.67 billion; Sigma Pension Limited, N4.34 billion; Pension Alliance Limited, N4.29 billion; FCMB Pension Limited, N3.48 billion; Fidelity Pension Managers Limited, N3.44 billion and NLPC Pension Fund Administrators Limited, N3.23 billion are below the N5billion capital requirement.

Those at the lower level of the exercise include APT Pension Fund Managers Limited, N2.68 billion; AIICO Pension Fund OAK Pension Limited, N1.73 bilManagers Limited, N1.76 billion; lion; AXA Mansard Pension, now Tangerine Pension Limited, N1.70 billion; Veritas Glanvill Pension Limited, N1.53 billion; IEI Anchor Pension Managers Limited, N1.37 billion; Investment One Pension Managers Limited, N1.26 billion and Radix Pension Managers Limited, N985.68 million.

The increase of the shareholders’ fund of PFAs from N1 billion to N5 billion, according to PenCom was aimed at boosting PFAs capacity in terms of operational efficiency and service delivery.

PenCom in a circular entitled: Revised Minimum Share Requirement for Licensed Pension Fund Administrators (PFAs), dated April 29, 2021 and sent to Managing Directors/Chief Executive Officers of all licensed pension fund operators, said: “The increase in the minimum regulatory capital is necessitated by the need to improve the capacity of PFAs, in terms of operational efficiency and effectiveness as well as service delivery.”

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