The National Pension Commission (PenCom) has reaffirmed that the recapitalisation of Pension Fund Administrators (PFAs) remains on course, warning that non-compliant operators risk losing their licenses by June 2027.
Omolara Oloworaran, director general of PenCom, who made the disclosure while responding to questions at the 2025 Pension Revolution Summit and Media Conference, held in Lagos, said PFAs that can’t recapitalise have option of merger or acquisition to meet the requirements within the stipulated timeframe.
“We have communicated the requirements to PFAs, and we expect every PFA to be compliant by June 2027. Any PFA that is not compliant will have its license revoked. It’s that simple.
Oloworaran said, based on our engagements, all PFAs will either meet the requirements on their own or find partners to merge with. So you may see some mergers and acquisitions.
“What I can tell you is that recapitalisation is on track. The industry agrees with us, they really have no choice but to recapitalize, she said.
PenCom, in a circular issued on September 26, 2025, announced a revised minimum capital requirements for Licensed Pension Fund Administrators (LPFA) and Pension Fund Custodians (PFCs)
Under the new framework, PFAs with AUM below N500 billion will require at least N20 billion in capital, while PFAs with AUM of N500 billion and above will require N20 billion, plus one percent of the portion of their AUM above N500 billion.
Speaking on landmark achievements of the Commission over the past year, Oloworaran announced the inauguration of the Board of Trustees for PenCare, describing it as a historic, industry-wide intervention aimed at providing free and accessible healthcare for low-income retirees.
“Retirement should be a season of peace, not a period defined by anxiety over medical bills. I am pleased to announce that the pilot scheme will launch in March next year, with plans to enroll 30,000 retirees across the six geopolitical zones to strengthen collaboration and leadership in the industry,” Oloworaran said.
The DG emphasized that PenCare forms part of the broader Pension Revolution 2.0 Reforms, which have driven significant structural transformation in Nigeria’s pension sector over the past year. She noted that the scheme will gradually expand to include more retirees.
Key initiatives over the last year include the full automation of critical pension processes, the introduction of accredited pension agents, and the rebranding of the Micro Pension Plan as the Personal Pension Plan to extend coverage to artisans, traders, gig workers, and participants in the informal sector.
Oloworaran also highlighted efforts to clear long-standing pension backlogs and improve operational efficiency. A major milestone was the approval and disbursement of N758 billion by President Bola Ahmed Tinubu to settle all outstanding pension liabilities, underscoring Nigeria’s commitment to its workers and retirees.
She assured that the zero-waiting-time policy for approved benefits, effective from July 2025, will continue, guaranteeing retirees receive their entitlements immediately upon retirement.
The DG further noted that regulatory measures to strengthen employer compliance have resulted in pension recoveries of N4.04 billion from January to November 2025, representing a 180 percent increase compared to 2024.
Continuing she said the most notable outcome occurred in the third quarter of 2025 alone, when N2.06 billion was recovered, nearly 150 percent of the total recoveries achieved in the entire 2024 financial year.
She attributed this turnaround to a compliance circular issued in the second quarter of 2025, which linked the issuance of Pension Clearance Certificates to active participation across the pension industry value chain.
“The impact was immediate and unmistakable,” she said, noting that compliance behaviour also shifted significantly.
