Sigma Pensions target market dominance with Access Corporation acquisition

The acquisition of Sigma Pensions by entities controlled by Access Corporation (Parent Company of Access Bank) will position it as the fourth largest Pension Fund Administrator (PFA) in Nigeria after its proposed merger with First Guarantee Pensions with its target set on attaining market dominance in the near-term.

Dave Uduanu, managing director/CEO Sigma Pensions, reiterated that the sale of Actis Golf Nigeria Ltd – Parent Company of Sigma Pensions was based on the firm’s original strategic intent to invest in Sigma Pensions, work with management to achieve a significant transformation and exit after a 5/6 year holding period.

ActisGolf is a special purpose vehicle (“SPV”) set up by ACTIS Private Equity UK in 2015 to pursue a buy and build strategy within the Pension Fund Industry in Nigeria and the wider African market. Access Corporation intends to continue with the original strategy of Actis Golf as developed by Actis Private Equity.

Uduanu states: “The investment thesis behind this landmark transaction is to achieve a merger of Sigma Pensions and First Guarantee Pensions to create the 4th largest PFA in Nigeria.

The strategy builds on Access Corporations vision of creating a globally connected community and ecosystem inspired by Africa for the world. “Our objectives are very clear and crisp – to emerge as the second biggest PFA in Nigeria and within five to seven years to become the biggest PFA in Nigeria.

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This objective will be achieved through a combination of organic growth using the huge platform Access Corporation offers, inorganic growth through bolt-on acquisitions and focusing on the untapped markets in the industry. The Company will also follow the footprint of its parent – Access Corporation into the rest of the continent.

He expressed that the milestone transaction would create a dominant wholly-owned Nigerian PFA well positioned to serve its customers better with huge funds under management and the capacity to invest in critical sectors of the economy like infrastructure, Private Equity, Real Estate, mortgage backed securities and critical SMEs. This will compliment Governments effort in developing the economy and creating jobs for Nigeria’s teeming population.

He added: “ This transaction allows Sigma to become part of the Access Corporation’s ecosystem which has the biggest bank in Nigeria with over 50 million customers. Customers would have all their pensions and financial planning requirements met under one roof. They will also have the benefit of accessing up to 25 percent of their RSA savings to support the purchase of a home under the RSA-mortgage support scheme.

“For the staff of Sigma Pensions, this is a huge leap forward as they will be working for one of the biggest financial service companies in Nigeria. And for the country as a wholly owned, this will be a success story of an exit by the biggest and best Private Equity Firm in emerging markets, ACTIS PE exiting an investment to biggest Financial Services Company in Nigeria.”