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10 PFAs have already met N5bn minimum share capital – PenCom

10 PFAs have already met N5bn minimum share capital – PenCom

Key players in the pension industry at the 2021 journalists seminar organised by PenOp in Lagos.

The National Pension Commission (PenCom) on Friday said that about 10 Pension Fund Administrators (PFAs) had met or exceeded the minimum capital base of N5 billion specified by the commission.

Ehimeme Ohioma, head, Surveillance, PenCom said this in an interview with the News Agency of Nigeria (NAN) in Lagos.

He spoke on the sidelines of the 2021 media parley organised by the Pension Fund Operators Association of Nigeria (PenOp) with the theme: Micro Pension – Challenges and Opportunities.

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PenCom had recently directed PFAs to increase their minimum share capital base from the existing N1 billion to N5billion by April 12, 2022.

Ohioma said that the objective of the recapitalisation was to improve the financial stability and operational efficiency in the industry.

He explained that the directive was right, as the last recapitalisation in the industry was done in 2011.

”This is the second recapitalisation done in the industry since the inception of the current Contributory Pension Scheme (CPS).

“It is obvious that the industry has grown, assets and contribution have increased.

“There is need for this. They need to retain the real skilled workers. We need to attract talent. There is need for digitalization. This will cost money too and ensure efficiency, especially with the COVID-19.

“There has been ongoing consolidation within the industry, so we do not expect any challenges in the industry, as regards the recapitalisation.

“On or before February 2022, we expect a picture of what the industry is going to look like before the April deadline, ” he said.