The National Pension Commission (PenCom) has issued new guidelines banning significant cross-shareholding in multiple licensed Pension Fund Operators (LPFOs), with immediate effect.
The regulator announced the move on Friday, explaining that it is designed to promote transparency, good governance, and stronger protection of pension assets.
According to the guidelines, significant cross-shareholding occurs when a major shareholder in one LPFO acquires, or seeks to acquire, a significant stake in another LPFO. It may also arise through indirect means such as conversion of debt to equity, transfer by law (including inheritance), or other forms of vesting.
PenCom further clarified that mergers and acquisitions outside the pension sector could also trigger significant cross-shareholding if they result in individuals or entities holding five per cent or more in multiple LPFOs.
The regulator, therefore, prohibited such practices:
“No person shall hold, or continue to hold, or otherwise enter into any arrangement or agreement that would result in holding or continuing to hold a significant cross-shareholding,” the commission stated.
The enforcement of this policy is expected to reduce conflicts of interest and safeguard the integrity of Nigeria’s pension industry.
![CORRECTION / People who fled the war from May Tsemre, Addi Arkay and Zarima gather around in a temporarily built internally displaced people (IDP) camp to receive their first bags of wheat from the World Food Programme (WFP) in Debark, 90 kilometres of the city of Gondar, Ethiopia, on September 15, 2021. (Photo by Amanuel Sileshi / AFP) / ìThe erroneous mention[s] appearing in the metadata of this photo by Amanuel Sileshi has been modified in AFP systems in the following manner: [Debark, 90 kilometres of the city of Gondar] instead of [Dabat, 70 kilometres northeast of the city of Gondar]. Please immediately remove the erroneous mention[s] from all your online services and delete it (them) from your servers. If you have been authorized by AFP to distribute it (them) to third parties, please ensure that the same actions are carried out by them. Failure to promptly comply with these instructions will entail liability on your part for any continued or post notification usage. Therefore we thank you very much for all your attention and prompt action. We are sorry for the inconvenience this notification may cause and remain at your disposal for any further information you may require.î](https://business360news.com/wp-content/uploads/2026/10/Ethopia-Tigray-120x86.jpg)
