The Group Chief Executive Officer of United Capital Plc, Peter Ashade, has said the revised Retirement Savings Account (RSA) investment guidelines introduced by National Pension Commission (PenCom) could unlock more than N2 trillion in fresh institutional investments into Nigeria’s equities market.
Speaking during the maiden edition of the United Capital Investor Relations Roundtable in Lagos, Ashade said the higher equity allocation limits across RSA Funds I, II, III and VI-Active would encourage greater participation by pension fund administrators in the domestic stock market.
He noted that the revised guidelines would improve market liquidity, strengthen investor confidence and provide listed companies with access to long-term capital.
Ashade described the pension reform as a major catalyst for Nigeria’s capital market, adding that the country’s pension industry remains one of the largest sources of domestic institutional capital.
He also identified Nigeria’s potential reclassification to Frontier Market status, the adoption of the T+1 settlement cycle, banking recapitalisation and foreign exchange reforms as additional factors expected to support long-term market growth.
United Capital posts strong H1 2026 performance
United Capital reported strong financial results for the first half of 2026, with gross earnings increasing 58% year-on-year to N37.49 billion from N23.76 billion.
Profit before tax rose 80% to N24.78 billion, while profit after tax climbed 77% to N21.10 billion.
Net operating income also increased 55% to N33.05 billion, while the group’s cost-to-income ratio improved to 44%, down from 50% in the corresponding period of 2025.
Earnings per share grew 75% to N2.34, prompting the board to declare an interim dividend of 30 kobo per share.
The company’s Asset Management business remained its largest contributor, generating N12.99 billion in revenue, up 68%, while profit before tax rose 151% to N9.46 billion.
The Securities Business recorded revenue of N5.86 billion, representing an 85% increase, while Investment Banking generated N5.62 billion, up 46%.
Other subsidiaries also posted strong performances, including the Trustees, Wealth Management, UC Plus Advance and UCEE Microfinance Bank, which reported revenue growth of 305% and a 913% increase in profit before tax.
Fee and commission income contributed N14.3 billion, accounting for 38% of gross earnings, while net investment income stood at N13.8 billion.
Managed funds rose 4% year-to-date to N1.04 trillion, while shareholders’ funds increased 25% to N187.09 billion, despite total assets declining 7% to N1.64 trillion.
Ashade said United Capital plans to capitalise on the expected increase in market liquidity by expanding its investment banking, securities trading and asset management businesses.
The company also plans to grow its InvestNow digital wealth platform, strengthen regional operations in Ghana and Côte d’Ivoire, increase cross-selling across its subsidiaries and continue promoting sustainability and digital financial inclusion.
PenCom reforms expected to deepen market liquidity
PenCom’s revised RSA investment guidelines increase the maximum allocation to ordinary shares across four pension fund categories, allowing pension fund administrators greater flexibility to invest in Nigerian equities.
The new limits raise equity allocations to 35% for Fund I, 33% for Fund II, 15% for Fund III and 33% for Fund VI-Active.
According to PenCom data analysed by Nairametrics, pension fund investments in domestic equities increased to N5.46 trillion by March 2026 from N3.96 trillion at the end of 2025, reflecting stronger institutional participation following the reforms.
With Nigeria’s pension assets approaching N30 trillion, industry stakeholders believe the revised guidelines will deepen liquidity on the Nigerian Exchange, improve price discovery and provide listed companies with a larger pool of long-term institutional investors.
