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NPF Pensions Limited: Ten years of incredible feats

ARM Pensions, Access Holding: A titanic merger for pension sector

On October 21, 2023, the Nigeria Police Force Pensions Limited marked its tenth anniversary, a significant milestone in its journey that commenced as a necessity-driven initiative. Established in accordance with the 2014 Pension Reform Act, the organisation emerged as the 21st Pension Fund Administrator (PFA) in Nigeria’s Contributory Pension Scheme (CPS), exclusively tasked with managing the pension assets of police personnel nationwide.

Ten years down the line, the results speak volumes. NPF Pensions Limited has evolved into the premier police investment entity, consistently ranking first in investment performance for two consecutive years within the pensions industry. Moreover, it holds the distinction of being the sole PFA to achieve the coveted position of overall performance in investment returns across all four main retirement savings accounts funds.

A decade later, the journey has been one of incredible feats and unparalleled accomplishments. Prior to the establishment of NPF Pensions Limited, Nigerian policemen were scattered across the existing 20 PFAs, facing a lack of communication and awareness about their Retirement Savings Accounts (RSA). The challenges were formidable, but under the leadership of Dr. Hamza Sule Wuro Bokki, an industry veteran in investment banking and corporate governance, the management team seamlessly addressed the initial hurdles.

One of the first steps was establishing offices in all 56 police formations and commands across the country, ensuring a direct and accessible channel for police personnel to manage their pension assets. Real-time online connectivity across all 62 offices further streamlined information access and reduced the documentation stress for officers.

Ten years down the line, the results speak volumes. NPF Pensions Limited has evolved into the premier police investment entity, consistently ranking first in investment performance for two consecutive years within the pensions industry. Moreover, it holds the distinction of being the sole PFA to achieve the coveted position of overall performance in investment returns across all four main retirement savings accounts funds.

In 2022, NPF Pensions closed the year as one of the top two PFAs in investment returns. Notably, Fund I appreciated by 11.89%, Fund II by 11.17%, Fund III by 10.77%, and Fund IV by 10.54%. The Q1 2023 results further solidified the PFA’s dominance, outperforming all others across all four funds.

Industry recognition has been widespread, with NPF Pensions Limited consistently outshining its counterparts. In August 2023, the PFA maintained its lead, recording an outstanding 2.27% growth and surpassing competitors. This exceptional performance extended to RSA Fund 2 and Fund 3, where NPF Pensions achieved top rankings with 2.32% and 2.11% growth, respectively.

The November 30, 2023, performance chart released by PenCom showcased NPF Pensions Limited as the only PFA appearing in the top five across all four funds for the January to October period. This remarkable achievement further solidified its position as an industry leader.

Beyond investment returns, NPF Pensions Limited has exhibited remarkable financial growth, achieving a 20.93% increase in total income to nearly N9.20 billion in 2022. Profit After Tax (PAT) witnessed a significant rise of 47.75% to N2.12 billion. The company’s cost-to-income ratio decreased to 66.78% in 2022, showcasing prudent financial management.

The audited Assets under Management (AuM) grew by 18.08%, totaling N827.60 billion in 2022. By the end of 2023, the AuM crossed the N1 trillion mark, positioning NPF Pensions Limited as the fourth-largest in the industry despite operating as a mono-clientele PFA.

In addition to financial prowess, the PFA has demonstrated a commitment to corporate social responsibility (CSR). The Board approved a N500 million annual Retiree Resettlement Support Scheme (RRSS) to provide financial support to retirees while awaiting their pensions. This initiative, unmatched by any other PFA, underscores the organisation’s dedication to alleviating the suffering of its clients.

Six years into operations, NPF Pensions Limited achieved another groundbreaking milestone by becoming the first and only PFA to build a corporate head office. Former President Muhammadu Buhari, while commissioning the ultra-modern building on October 20, 2020, acknowledged the impressive achievements of the PFA.

The success story of NPF Pensions Limited wouldn’t be complete without recognizing its formidable management team, lauded as one of the best in the industry. Their strategic thinking and unwavering commitment to excellence have played a pivotal role in the PFA’s remarkable journey.

As NPF Pensions Limited celebrates its tenth anniversary, it stands as a testament to resilience, innovation, and dedication. The organisation has not only met the peculiar needs of the Nigeria Police Force but has become the indisputable industry leader. While the drums may not be rolled out in celebration, the smiles on the faces of appreciating policemen, both serving and retired, are the true rewards for a decade of incredible feats.