PFAs’ shareholder funds hit N211.27bn after recapitalisation pulled together shareholder funds totalling N211.27 billion at the end of their recent recapitalisation, according to figures released by the National Pension Commission (PenCom).
The data also shows that Stanbic IBTC Pensions Limited led the other 19 PFAs with N75.83 billion shareholder fund. It is followed by Trustfund Pensions Limited with N14.51 billion and GTB Pensions Managers Limited with N11.30 billion.
FCMB Pensions Limited followed with 10.75 billion, while ARM Pensions garnered N10.41 billion and NPF Pension Managers Limited N8.48 billion.
On the bottom of the table were Radix Pensions Limited, N5.0 billion; NLPC, N5.50 billion; and Tangerine APT Pensions Limited, N5.05 billion.
According to the commission, the recapitalisation exercise, which ran between April 27, 2021 and April 27 2022, requiring PFA to increase their shareholder funds from N1 billion to N5 billion, resulted in some mergers and acquisition in the industry.
For instance, Guaranty Trust Holding Company Plc acquired 100 percent stake in Investment One Pension Managers Limited, culminating in the change of the name of the PFA to Guaranty Trust Pension Managers Limited, while FCMB Pensions Limited bought 36.3 percent shareholding of AIICO Pension Managers, in addition to its initial 60 percent equity stake.
MBO Capital Management Limited acquired 80 percent shareholding of Radix Pension Fund Managers Limited, while Norreenberger Advisory Partners Limited bought 81 percent shareholding in International Energy Insurance (IEI) Plc, to become a significant shareholder in IEI-Anchor Pension Managers Limited.
Tangerine Pensions Limited and APT Pension Managers Limited also merged into a new entity, called Tangerine APT Pensions Limited.
Aisha Dahir-Umar, director general of PenCom, said all PFAs had complied with the commission’s directive to increase the minimum regulatory capital (shareholder fund) from N1 billion to N5 billion.
She said the reason for the recapitalisation was to ramp up the capacity of the PFAs to manage the increasing number of registered contributors and the value of pension fund assets.
According to her, it is expected that the exercise will bring about increased effectiveness and efficiency as well as improved service delivery in the industry.
As at the end of July 2022, the contributory pension scheme has recorded 9,730.778 registered contributors, while pension assets have risen to N14.36 trillion.
Oluremi Oyindasola Oni, chairman of PenCom, said the increase in the minimum regulatory capital is expected to strengthen the capacity of the PFAs and increase their presence nationwide through the creation of more business outlets and generally improve service delivery to members.
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In his annual report of operations of the commission, he said despite the overwhelming uncertainties in global economic climate in the aftermath of the Covid-19 pandemic and the challenging macroeconomic environment, the pension industry recorded a total of 9.59 million in schemes membership and N13.42 trillion in pension assets under management as at December 31, 2021.
He said the laudable performance in key growth parameters pointed to the fact that the pension industry would continue to deliver value and benefit to stakeholders and the nation’s economy in years to come.
He said during the 2021 financial year, the commission steadily pursued increased diversification of pension fund portfolios by ramping up efforts aimed at ensuring sustained investment of pension fund in structured infrastructure projects that meet the stringent requirements as enshrined in the Regulation for the Investment of Pension Fund Assets.
“We are glad to report that out of the N8.77 trillion or 65.35 percent of the total pension assets under management invested in Federal Government securities, pension funds directly invested N118.31 billion in the Sukuk Bond issued by the Federal Government to finance road projects nationwide,” Oni said.
He said N59.32 billion was invested in FGN Green Bond, while N14.30 billion was invested in agency bonds issued by the Nigeria Mortgage Refinance Company.
“Although the commission’s efforts at diversifying investments of pension funds and hedging against inflation has gradually began to yield results, it is, however, worthy to note that efforts are ongoing to ensure that the annualized average rates of return of pension funds across RSA and Legacy Funds are above headline inflation rates,” Oni said.
