PenCom Raises PFAs Capital to N20bn, Sets New Guidelines for Nigeria Pension Industry

The Pension Commission (PenCom) in Nigeria has increased the minimum capital requirement for Pension Fund Administrators (PFAs) to N20 billion to enhance financial stability. By December 31, 2026, operators must meet this threshold, with additional guidelines set to strengthen the industry.

PFAs with Assets Under Management (AUM) of N500 billion must maintain a capital base of N20 billion plus 1% of the excess AUM. Special Purpose PFAs like NPF Pensions Limited and Nigerian University Pension Management Company Limited have specific capital requirements.

This move aligns with global best practices to ensure capital adequacy relative to risk exposure, marking a significant regulatory shift in the Nigerian pension industry.