Nigeria’s Pension Fund Administrators (PFAs) will need a combined N276.8 billion to meet the new capital requirements announced by the National Pension Commission.
The new framework links capital to Assets Under Management, compelling major PFAs including Stanbic IBTC, Access ARM, Leadway Pensure, NPF Pensions, Premium Pensions, Trustfund Pensions, and FCMB Pensions to raise fresh capital on AUM exceeding N500 billion before the December 2026 deadline.
PenCom’s circular, dated September 26, 2025, stated that PFAs with assets below N500 billion must hold a minimum of N20 billion, while those with assets above that level must add one percent of the excess amount to the base capital.
Special Purpose PFAs such as NPF Pensions and Nigerian University Pension Management Company are required to maintain N30 billion and N20 billion respectively. Pension Fund Custodians must hold N25 billion plus 0.1 percent of Assets Under Custody.
Industry data indicate that Stanbic IBTC, managing N5.895 trillion in assets with shareholders’ funds of N45.41 billion, requires an additional N28.54 billion to meet its N73.95 billion target.
Access ARM Pensions, managing N3.5 trillion, faces a similar shortfall of N28.54 billion under the new rule. Leadway Pensure, after merging with PAL Pensions, manages N1.811 trillion and must raise about N13.6 billion to meet its N33.11 billion requirement.
Other PFAs expected to raise capital include NPF Pensions (N22.59 billion), Premium Pensions (N18.72 billion), Trustfund Pensions (N4.92 billion), and FCMB Pensions (N12 billion).
Industry analysts have questioned the scale of the increase. Rufus Baba argued that the guideline forces PFAs—despite limited balance sheet risk—to raise more capital than regional banks.
Another analyst, Daddy Jide, projected that the policy would trigger mergers and reduce investor appeal due to low returns in the sector.
PenCom said the new structure strengthens financial stability, enhances operational resilience, and ensures long-term viability of PFAs and custodians as Nigeria’s Contributory Pension Scheme marks 21 years.
