The National Pension Commission has extended the deadline for the ongoing recapitalisation of the pension industry to June 2027, shifting it from the earlier date of December 2026. The move gives pension fund operators an additional six months to meet the revised minimum capital requirements set by the regulator.
The Director-General of the National Pension Commission, Ms Omolola Oloworaran, disclosed this during the 2025 PenCom Media Conference held on Thursday in Lagos. She used the opportunity to dismiss speculations that the recapitalisation exercise had been suspended, stressing that the policy remains fully in force.
Oloworaran explained that the extension was introduced to give operators more time to complete necessary processes and ensure full compliance with the new capital structure. According to her, the commission has already communicated the revised timeline to all licensed pension fund administrators and custodians.
“Recapitalisation has not been suspended. We have communicated the requirements to the PFAs, and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence,” she said.
PenCom had earlier announced a revised minimum capital requirement in a circular issued to pension operators, stating that the timeline for compliance by both licensed Pension Fund Administrators and Pension Fund Custodians was December 31, 2026. With the new adjustment, operators now have an extra six months to meet the requirements.
Under the revised framework, PenCom introduced three categories of pension fund administrators based on their assets under management. Category A consists of PFAs with assets under management of N500 billion and above. These operators are required to maintain a minimum capital of N20 billion, plus one per cent of assets under management above N500 billion. Category B includes PFAs with assets below N500 billion, who are expected to raise their capital base to N20 billion.
Category C covers special-purpose pension fund administrators. This includes NPF Pensions Limited, whose minimum capital requirement was set at N30 billion, and the Nigerian University Pension Management Company Limited, whose minimum capital was pegged at N20 billion. PenCom explained that the categorisation reflects the different risk profiles and mandates of pension operators within the industry.
Speaking at the conference themed “Pension Revolution Summit: A 365 Days Scorecard,” Oloworaran said discussions with industry stakeholders showed broad acceptance of the recapitalisation policy. She noted that several operators have already begun raising fresh capital, while others are exploring mergers and acquisitions as part of their compliance strategies.
“You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us,” she said.
Beyond recapitalisation, the PenCom boss said the commission remains focused on improving employer compliance with pension remittances. She disclosed that the regulator has signed a Memorandum of Understanding with the Independent Corrupt Practices and Other Related Offences Commission and is also working closely with labour unions, including the Trade Union Congress, to enforce compliance.
According to her, enforcement remains one of the commission’s biggest regulatory challenges, as some employers still fail to remit pension contributions for their employees. She added that recent collaboration efforts are already yielding positive results, with recoveries from defaulting employers rising significantly.
“From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees,” Oloworaran said.
She also announced that PenCom will launch a pilot phase of the Pension Industry Healthcare Initiative, known as PENCARE, in March 2026. The pilot is expected to target about 30,000 of the lowest-earning retirees across Nigeria. According to PenCom, the initiative is aimed at easing the healthcare burden of low-income retirees and ensuring that retirement years are lived with dignity.
Oloworaran explained that the commission has already inaugurated the Board of Trustees of PenCare to drive the industry-wide intervention. She said the initiative would provide free and accessible healthcare services to eligible retirees across the six geopolitical zones of the country.
“Retirement should be a season of peace, not a period defined by anxiety over medical bills. I am happy to announce that the pilot will be launched in March next year, and we hope to enrol about 30,000 retirees across the six geopolitical zones of the country,” she said.
She described PENCARE as a landmark reform that aligns with the Federal Government’s Renewed Hope Agenda and reflects a commitment to improving the welfare of pensioners, especially those with limited income.
“We are building a pension system that protects not just income but also the well-being of those who have given their productive years to the nation,” Oloworaran added.
Also speaking at the event, the Acting Managing Director and Chief Executive Officer of the Pension Fund Operators Association of Nigeria, Ms Anthonia Ifeanyi-Okoro, welcomed the launch of PENCARE and other initiatives announced by the commission. She said the programmes set a strong foundation for the pension industry going into the new year.
According to her, initiatives such as PENCARE, the embedding of special projects, and the inauguration of the Pension Industry Leadership Council are part of a broader effort to deepen the value the pension industry delivers to Nigerians. She described the pension sector as a cornerstone of the Nigerian economy that mobilises long-term capital, supports financial markets, and underpins infrastructure financing.
The Acting Director of the Compliance and Enforcement Department at PenCom, Mr Ahmed Lawan, clarified that the PENCARE initiative is being funded jointly by the commission and licensed pension fund operators, with no deductions from contributors’ pension savings. He explained that PenCom is setting aside a portion of its fees, while operators are contributing a percentage of their profit after tax.
According to Lawan, the goal of PENCARE is to protect retirees from health-induced poverty, reinforce social responsibility within the pension industry, and strengthen public trust in the contributory pension scheme.
