The National Pension Commission has introduced new capital requirements for pension‑fund administrators and custodians in Nigeria, raising the minimum capital threshold from N2 billion to N20 billion. This change is part of the Commission’s Pension Revolution 2.0 initiative, which aims to enhance the stability and efficiency of the pension industry.
The new requirements apply to pension‑fund administrators with assets under management of N500 billion or more, and to pension‑fund custodians with assets under custody below N500 billion. Specialized administrators have distinct thresholds: the Nigerian Police Force Pensions Limited must hold at least N30 billion, while the Nigerian University Pension Management Company Limited is required to maintain N20 billion in capital.
Existing operators must meet the revised thresholds by December 31 2026, whereas the new capital levels take effect immediately for any new licensees. The Commission will monitor compliance biennially using audited financial statements, and any shortfall must be corrected within 90 days to retain an operational licence.
These revised capital requirements reflect significant developments in the pension‑fund custody business over the past 21 years. The evolving operating landscape necessitates a reassessment of capital thresholds to ensure continued financial stability and effective risk management. By raising capital requirements, the Commission seeks to strengthen the pension industry, benefit pensioners, and contribute to Nigeria’s overall economic growth.
As the compliance deadline approaches, pension‑fund administrators and custodians must take the necessary steps to meet the new thresholds. The Commission’s monitoring and enforcement measures will help ensure greater financial robustness, providing a secure foundation for pensioners and boosting confidence in the Nigerian pension system.
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