The National Pension Commission (PenCom) has raised the minimum capital requirements for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to N20bn and N25bn, respectively. The directive, contained in a new circular released under the Pension Revolution 2.0 initiative, gives operators until December 31, 2026, to comply.
The last review was in April 2021, when the minimum capital requirement for PFAs was raised from N1bn to N5bn. The latest adjustment introduces three distinct categories. Category A covers PFAs with Assets Under Management (AUM) of N500bn and above, who must now maintain a minimum capital of N20bn plus one per cent of their AUM. Category B consists of PFAs with AUM below N500bn, required to raise their capital base to N20bn.
Category C applies to special-purpose PFAs, with the Nigerian Police Force Pensions Limited mandated to maintain a minimum capital of N30bn, while the Nigerian University Pension Management Company Limited must hold N20bn.
PenCom also clarified that new entrants seeking PFA licences must have a minimum capital of N20bn with immediate effect.
The regulator said the move is aimed at strengthening the pension industry, ensuring financial stability, and enhancing capacity to manage growing pension assets in Nigeria.
