PenCom Hikes Capital Base for Pension Operators to N20bn, Sets 2026 Deadline

|By Adejumo Adekunle

The National Pension Commission (PenCom) has raised the minimum capital requirement for Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs), marking a major shift in Nigeria’s pension industry.

In a new circular under its Pension Revolution 2.0 initiative, PenCom announced that PFAs with over N500 billion in assets under management and PFCs with less than N500 billion in custody must now maintain a minimum capital of N20 billion—ten times higher than the previous N2 billion threshold.

The Commission further directed that Special Purpose PFAs, such as the Nigerian Police Force Pensions Limited, must hold N30 billion, while the Nigerian University Pension Management Company Limited is required to maintain N20 billion.

PenCom fixed December 31, 2026, as the compliance deadline for existing operators, stressing that the new benchmark takes immediate effect for fresh licence applications. The Commission said it would monitor compliance every two years through audited financial statements, giving operators 90 days to address any shortfall.

Explaining the move, PenCom noted that the pension custodianship business had evolved significantly over the past 21 years, necessitating stronger financial buffers to ensure stability and effective risk management.