The National Pension Commission (PenCom) has said all the Pension Fund Administrators (PFAs) in Nigeria have successfully raised their capital base from N1 billion to N5 billion in compliance with the recapitulation programme.
The Director-General of PenCom, Mrs Aisha Dahir-Umar, stated this on Thursday at the 2022 journalists’ workshop in Abuja.
The PenCom boss, represented by the Head, Corporate Communications, Dauda Ahmed, said the recapitalisation was based on improving the capacity of the PFAs to manage the increasing number of registered contributors and the value of pension fund assets.
She said, “PenCom increased the Minimum Regulatory Capital (Shareholders’ Fund) requirements of PFAs from N1bn to N5bn last year. The recapitalisation exercise had a 12-month transition from April 27, 2021, to April 27, 2022. As of the deadline, all PFAs have complied with the commission’s directive to increase the Minimum Regulatory Capital from N1bn to N5bn.”
She also said the recapitalisation exercise was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors and the value of pension fund assets under which, “I am pleased to inform you stood at 9,795,957 million and N14.27trn respectively as at June 30, 2022.
“It is expected that the exercise will bring about increased effectiveness and efficiency as well as improved service delivery in the industry.”
PenCom also stated that Micro Pension Scheme (MPS) under the Contributory Pension Scheme (CPS) had risen to 81,674 as at July 2022 compared to 2,897 registrants enrolled in the first quarter of the first quarter of 2022.
The Head, Micro Pension at PenCom, Dauda Ahmed, said that contributions under the scheme within the period stood at N296.9bn, while total contingent withdrawal recorded N22.3bn.
He also indicated that N4.9bn was converted from informal to formal sectors within the period.
