The National Pension Commission (PenCom) has officially extended the deadline for Licensed Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to comply with its revised minimum capital requirements, giving operators an additional six months to meet the new standards. In an addendum to its earlier circular dated September 26, 2025, the Commission announced that the new compliance deadline is now set for June 30, 2027, replacing the previous deadline of December 31, 2026.
According to the addendum, signed by A.M. Saleem, Director of the Surveillance Department at PenCom, the update provides clarifications to the revised regulatory capital framework. Notably, the Statutory Reserve Fund (SRF), previously excluded, will now count as part of the Shareholders’ Funds for all categories of PFAs, a move expected to ease capital adequacy pressures. Additionally, certain funds, including the Personal Pension Plan (Fund V), Foreign Currency Fund (Fund VII), Approved Existing Schemes, and Additional Benefit Schemes, will be excluded when calculating the 1% capital surcharge based on Assets Under Management (AUM). These refinements aim to better align capital requirements with actual risk exposure.
PenCom emphasized its continued commitment to rigorous oversight, stating that compliance will be monitored biannually through audited financial statements. Any shortfalls must be rectified within 90 days of notification. The Commission also clarified that the revised capital requirements are immediately effective for new licensees, reaffirming its focus on maintaining stability and integrity in Nigeria’s pension sector.
The extension provides existing PFAs and PFCs additional time to adjust to the new thresholds, many of whom have been grappling with the impact of the revised N20 billion minimum capital requirement for PFAs. Special Purpose PFAs, such as NPF Pensions Limited, are required to maintain N30 billion, while the Nigerian University Pension Management Company Limited must hold N20 billion. PFAs with AUM exceeding N500 billion must maintain a capital base of N20 billion plus 1% of excess AUM above the threshold.
The September revision marked one of the most significant regulatory changes in Nigeria’s pension industry in over two decades, aimed at strengthening operational resilience and financial stability. With the latest extension and clarifications, PenCom seeks to balance regulatory rigor with operational flexibility, ensuring the long-term sustainability of Nigeria’s contributory pension system.
All inquiries regarding the addendum are to be directed to PenCom’s Surveillance Departmets
