The National Pension Commission (PenCom) has extended the deadline for pension industry recapitalisation to June 2027, moving it from the earlier target of December 2026. The adjustment gives pension fund operators an additional six months to meet revised minimum capital requirements, easing concerns across the industry about the pace of compliance.
PenCom’s Director-General, Omolola Oloworaran, announced the extension at the 2025 PenCom Media Conference in Lagos, dismissing speculation that the recapitalisation exercise had been suspended. She stressed that the policy remains firmly in place and warned that any operator that fails to comply by the new deadline risks losing its operating licence.
Under the revised framework, pension fund administrators are grouped into three categories based on their assets under management. Large operators managing ₦500bn and above must maintain a minimum capital of ₦20bn plus one per cent of assets exceeding that threshold, while smaller firms are required to raise their capital base to ₦20bn. Special-purpose pension administrators, including those serving specific institutions, face higher capital requirements to reflect their unique mandates.
Oloworaran said engagement with industry players showed broad acceptance of the policy, with many operators already exploring fresh capital injections, mergers, or acquisitions. Beyond recapitalisation, she noted that PenCom is intensifying efforts to improve employer compliance with pension remittances, working closely with the Independent Corrupt Practices and Other Related Offences Commission and labour unions, including the Trade Union Congress of Nigeria, to recover unpaid contributions.
The PenCom chief also unveiled plans to pilot a Pension Industry Healthcare Initiative in March 2026, targeting about 30,000 low-income retirees nationwide. Designed to reduce the healthcare burden on pensioners, the programme underscores the regulator’s broader push to ensure that retirement in Nigeria is not just financially secure, but lived with dignity and peace of mind.
source; punch