Category: Refined Living

The Nigeria Customs Service’s Apapa Area Command reported total revenue of N2.93 trillion in 2025, marking an increase of N573.2 billion, or 24.3 per cent, compared to N2.35 trillion collected in 2024. The command’s Public Relations Officer, Isah Sulaiman, confirmed the figures in a statement released on Wednesday. “The command recorded a total of N2.93 trillion in revenue in 2025, an increase of N573.2 billion over the previous year, reflecting a 24.32 per cent growth. This performance reinforces Apapa Command’s position as Nigeria’s top revenue-generating hub,” the statement said. Customs Area Controller Emmanuel Oshoba credited the achievement to strong leadership, disciplined personnel, and strategic deployment of technology under the guidance of Comptroller-General of Customs, Adewale Adeniyi. He also acknowledged the contribution of compliant stakeholders whose lawful trading practices significantly supported revenue growth. “A key factor in this success was the implementation of the Unified Customs Management System, also known as B’Odogwu, which improved transparency, efficiency, and accountability in cargo clearance. Regular performance reviews and timely revenue recovery also strengthened collections,” Oshoba explained. He added that trade facilitation was enhanced through intensified stakeholder engagement, the rollout of the Authorised Economic Operator (AEO) Programme, and expansion of the One-Stop Shop initiative, which ensured faster processing and release of compliant cargo. Efforts are also ongoing to deploy the FS6000 cargo scanning system, a non-intrusive technology capable of scanning up to 200 containers per hour. Oshoba highlighted enforcement achievements, including the interception of 53 containers carrying illicit drugs and prohibited items, such as cocaine, Canadian loud, tramadol, and expired pharmaceuticals, with a duty-paid value of N12.6 billion. Some seizures were handed over to relevant agencies, including the National Drug Law Enforcement Agency and the National Agency for Food and Drug Administration and Control, for further investigation and prosecution. Looking ahead, Oshoba expressed confidence that the command would reach higher revenue milestones in 2026, driven by deeper implementation of B’Odogwu, AEO, and OSS, enhanced intelligence-led enforcement, and stronger collaboration with other agencies. He also promised continued engagement with terminal operators, shipping companies, licensed customs agents, freight forwarders, haulage operators, and the media to ensure transparent and efficient trade operations. Meanwhile, the Nigeria Customs Service’s Seme Area Command reported revenue of N15.5 billion from January to December 2025, a 117 per cent increase over the N7.1 billion collected in 2024. The command’s Public Relations Officer, Tunde Ayagbalo, noted that the year marked unprecedented revenue performance, with December 2025 alone generating a record N3.6 billion—the highest monthly collection in the command’s history. Ayagbalo attributed the growth to the effective rollout of the One-Stop Shop initiative, which improved coordination and trade facilitation, and robust anti-smuggling operations. In December, the command intercepted 685 parcels of cannabis sativa, 495 packs of tramadol, and 2,000 packs of high-dosage sexual enhancement drugs, through intelligence-led operations, risk profiling, enhanced patrols, and inter-agency collaboration. The Customs Area Controller of Seme Command, Wale Adenuga, praised the reduction of checkpoints along the Lagos–Abidjan corridor to just the two locations approved by the Federal Government, a move that eased legitimate trade, reduced delays, and contributed to the command’s revenue growth. He also issued a stern warning to smugglers, stating that the Seme borders are no longer safe for illegal activities. “With advanced intelligence, technology, and constant vigilance, our officers will continue to intercept and prosecute offenders,” Adenuga affirmed.

U.S. President Donald Trump announced on Wednesday that defence companies would be barred from paying dividends or conducting stock buybacks until they resolve ongoing issues in the production and maintenance of military equipment, according to Reuters. In a post on Truth Social, Trump criticised defence contractors for slow delivery of military hardware and inadequate upkeep of equipment once produced. “Defence companies are not producing our military equipment quickly enough, and once produced, they are not maintaining it properly or promptly,” he said. Trump also condemned high executive pay in the defence sector, calling it “exorbitant and unjustifiable.” He stressed that senior executives should focus on expanding and modernising production capacity rather than rewarding shareholders and management. “From this point forward, these executives must build new and modern production facilities to deliver and maintain essential equipment and to develop future military models,” he added, without naming specific firms or individuals. He proposed a cap on executive compensation, suggesting that no defence industry executive should earn more than $5 million annually until production challenges are resolved. While substantial, he noted this is far below the current earnings of many top executives. Reuters reported that Trump’s remarks reflect long-standing concerns from both the president and the U.S. Department of Defense over what they view as an expensive, slow-moving, and entrenched defence industry. The statements signal potential tighter government oversight of defence contractors and may affect investors, as dividends and share buybacks are important components of shareholder returns in the sector.

Togo, Niger, and Benin owe Nigeria $17.8 million, equivalent to over N25 billion at current exchange rates, for electricity supplied under bilateral agreements, the Nigerian Electricity Regulatory Commission (NERC) has reported. In its Third Quarter 2025 report, NERC stated that these three international customers were invoiced a total of $18.69 million by the Market Operator for electricity supplied during the period, but they paid only $7.125 million, leaving an outstanding balance of $11.56 million. Additionally, legacy invoices from previous quarters amounted to $14.7 million, of which $7.84 million was settled, leaving a balance of $6.23 million. Combined, the total outstanding debt from Q3 2025 and previous quarters stands at $17.8 million, or N25.36 billion using an exchange rate of N1,425 to the dollar. The international offtakers were identified as Compagnie Énergie Électrique du Togo, Société Béninoise d’Énergie Électrique of Benin, and Société Nigérienne d’Électricité of Niger. NERC noted that electricity supplied to these countries was generated by grid-connected Nigerian generation companies and delivered through cross-border bilateral arrangements. For Q3 2025, the three international customers collectively remitted $7.125 million against the $18.69 million invoiced, representing a 38.09 percent remittance rate, with more than half of the billed amount remaining unpaid. In comparison, domestic bilateral customers performed significantly better, paying N3.19 billion out of N3.64 billion invoiced for the same period, a remittance rate of 87.61 percent. The report highlighted that some bilateral customers also made payments for invoices from previous quarters. The Market Operator received $7.84 million from international customers and N1.3 billion from domestic customers as settlements of past invoices. Furthermore, Nigeria’s 11 electricity distribution companies remitted a total of N381.29 billion to the Nigerian Bulk Electricity Trading Plc and the Market Operator in Q3 2025, out of N400.48 billion invoiced, achieving a remittance performance of 95.21 percent. NERC explained that these figures are based on reconciled market settlements submitted to the commission as of December 18, 2025, as part of its statutory review of the electricity market’s commercial performance.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Federal Government and regulators to ensure consistent crude supply to domestic refineries and maintain stable pricing mechanisms to help reduce fuel prices in 2026. In its 2026 outlook, signed by National President Billy Gillis-Harry and spokesman Joseph Obele, PETROAN said irregular crude allocation, pipeline disruptions, and fluctuating prices have continued to challenge retail operators, creating market uncertainty and squeezing profit margins. “Providing a steady and adequate crude supply to domestic refineries is crucial for production and for reducing dependence on imports. Without this, pump prices will remain high, and retail operators will continue to incur losses,” the association stated. PETROAN noted that the naira-for-crude policy—which allows refineries to pay for crude in naira instead of dollars—has strategic potential but faced implementation gaps last year. “Delays, pricing disputes, and inconsistent allocations limited the policy’s effectiveness. Strengthening transparency and timely crude allocation will be critical to maximise its benefits in 2026,” the association added. The group also highlighted the intense competition between petroleum importers and local refiners in 2025, describing it as a price war that eroded profits for retail operators and created market uncertainty. “The downstream sector saw fierce price competition between importers and local refineries, resulting in frequent pump price changes that caused billions of naira in losses, reduced margins for operators, and weakened investment confidence,” PETROAN said. On domestic refining, the association welcomed the approval of more than 30 private refineries, including 23 under construction, which together could add over 850,000 barrels per day to Nigeria’s refining capacity. “These projects, combined with the Dangote Petroleum Refinery, will significantly reduce import dependence and strengthen domestic production,” PETROAN said. The association emphasised that improving crude supply, securing pipelines, and promoting fair competition are key to stabilising pump prices and boosting investor confidence. “Stable crude allocation, predictable pricing, and robust regulatory oversight are essential for protecting consumers and ensuring long-term sector growth,” it added. Looking ahead, PETROAN urged policymakers to maintain import flexibility to ensure uninterrupted supply, support alternative energy sources such as CNG, LPG, and solar, and foster continuous engagement with regulators, refiners, and retail operators. The association concluded that affordable and sustainable fuel prices in 2026 will require a balanced approach combining domestic refining, fair pricing, and reliable supply.

The African Energy Chamber (AEC) has expressed support for Venezuela’s oil recovery efforts following the detention of President Nicolás Maduro by United States authorities, emphasising that political and institutional stability is vital to restoring investor confidence and promoting sustainable growth in the country’s energy sector. The announcement comes as former U.S. President Donald Trump stated on Tuesday that Venezuela would transfer between 30 million and 50 million barrels of oil to the United States, to be sold at prevailing market prices, with proceeds managed by the U.S. government. Trump said the revenue would be used “to benefit the people of Venezuela and the United States.” Venezuela entered 2026 amid heightened uncertainty after U.S. forces detained Maduro and his wife, Cilia Flores, transferring them to the United States to face federal charges. Maduro appeared before a U.S. court, where longstanding allegations—including narco-terrorism conspiracy and cocaine trafficking—were revived. He has denied the charges. Following his detention, Venezuela’s Supreme Court confirmed that Vice President Delcy Rodríguez had assumed office as Acting President to ensure institutional continuity. These developments have intensified attention on the future of Venezuela’s economy and its oil-dependent energy sector, even as the U.S. assumed operational control of the transferred oil. In response, the AEC highlighted stability as the most crucial factor for the country’s development. The chamber noted that Venezuela possesses the largest proven oil reserves in the world—a resource capable of transforming the nation’s economy, rebuilding infrastructure, and restoring energy security. Achieving this potential, the AEC stated, depends on predictable governance, responsible management of resources, and the creation of investment-friendly frameworks. The AEC urged the energy industry and international partners to provide support to Acting President Rodríguez, calling for unity, continuity, and a development agenda led by Venezuela. “This is the time to continue encouraging investment in Venezuela. We call on African states, leaders, and the Global South to support the acting president and Venezuelan citizens as they determine their future and exercise sovereignty,” said NJ Ayuk, Executive Chairman of the AEC. The chamber noted its ongoing working relationship with Rodríguez, who also serves as the country’s oil minister, highlighting her commitment to fostering Africa’s use of energy resources to drive socio-economic development. Under her leadership, Venezuela’s state-owned oil company, Petróleos de Venezuela S.A. (PDVSA), has developed strong ties with African nations, ensuring the Global South benefits from multilateral energy engagement. Venezuela remains a key player in global energy discussions. As a founding member of OPEC, the country has historically supported the inclusion of African producers in the organisation and serves as an honorary member of the African Petroleum Producers’ Organisation. Oil continues to underpin Venezuela’s economy, accounting for nearly 90 per cent of export revenues, over half of government income, and 17–20 per cent of GDP. With around 303 billion barrels of proven oil reserves—approximately 17 per cent of global reserves—the AEC noted that stable governance, regulatory clarity, and sustained investment of roughly $10 billion annually could enable production to reach 2.5 million barrels per day over the next decade. “Production realities show both the challenges and opportunities ahead,” the AEC said. “After falling to around 300,000 bpd in 2020, output has recovered to 900,000–1.1 million bpd in early 2026. While still below the historical peak of 3.4 million bpd in the late 1990s, this demonstrates that Venezuela’s oil industry is not irreparably damaged. Achieving peak production will require cumulative investment of $80–100 billion.” The chamber emphasised the strategic importance of the Orinoco Heavy Oil Belt, which spans approximately 55,000 km² and contains nearly 90 per cent of Venezuela’s reserves. Key blocks such as Petropiar, Ayacucho, and the Zuata Complex drive current output, though the extra-heavy crude demands access to diluents, upgraded processing facilities, and modern technology. Ayuk concluded, “Venezuela sits atop extraordinary natural wealth. Experience from Africa shows that when stability is prioritised and the energy sector operates responsibly, hydrocarbons can be a catalyst for recovery, unity, and long-term development.”

The Nigeria Labour Congress (NLC) has urged the Federal Government to urgently review workers’ wages and reassess tax policies, warning that delays and uneven compliance could worsen economic hardship for millions of Nigerians. The call was made on Wednesday by the NLC President, Joe Ajaero, at the 85th birthday celebration and book launch of the union’s founding president, Hassan Summonu, OON, held at the Shehu Musa Yar’Adua Auditorium in Abuja. Addressing an audience that included family members, government representatives and other stakeholders, Ajaero described Summonu as a towering figure in Nigeria’s labour movement whose legacy continues to inspire generations of workers. He said the theme of Summonu’s memoir, Organise, Don’t Agonise, remains a guiding principle for organised labour. According to Ajaero, the book’s message reflects the belief that collective organisation is the most effective response to exploitation and poor governance. He recalled the inauguration of the Hassan Summonu Centre for Leadership and Governance in Lagos last year, noting that it symbolised labour’s commitment to preserving the founding president’s ideals and the broader struggle of the Nigerian working class. Ajaero also raised concerns over the implementation of the new National Minimum Wage, which was signed into law in July 2024 and increased the minimum monthly pay from N30,000 to N70,000. He said compliance has been inconsistent, with many state governments, private employers and public institutions citing financial pressures and inflation as reasons for delay. He stressed that despite the law being clear, many workers are still paid below the approved minimum. He therefore called on the Federal Government to intervene urgently, ahead of the next statutory wage negotiations, warning that continued delays threaten workers’ welfare amid rising living costs. He added that the NLC is monitoring violations and is prepared to pursue enforcement measures and legal action where necessary. The NLC president also criticised recent tax policies, describing them as regressive and disproportionately harmful to workers and low-income earners. He argued that the reforms were developed without meaningful input from organised labour and the wider public, despite workers constituting a large portion of the tax base. In addition, Ajaero called for the immediate constitution of the PENCOM Board, warning that prolonged delays weaken governance structures and undermine the rule of law. He urged the government to engage more constructively with organised labour in policy formulation, stressing that decisions on wages, taxation, fuel pricing and social services must reflect the realities faced by workers. The event also celebrated Hassan Summonu’s enduring contributions to labour activism, with speakers highlighting the lasting influence of his philosophy on today’s union leadership. Ajaero concluded by reaffirming labour’s commitment to collective action and advocacy, calling for a governance approach that prioritises economic justice and improved living standards for Nigerian workers.

The full rollout of Nigeria’s Tax Reform Acts marks a significant shift with far-reaching consequences for both the private and public sectors. The new framework compels businesses to reassess their operations quickly to avoid stiff sanctions and regulatory setbacks. One immediate relief under the new regime is for salary earners, especially those earning below N800,000 annually, who are expected to see a modest increase in take-home pay from the end of January. This adjustment reflects changes introduced by the revised personal income tax structure. At the same time, businesses are required to apply and report Value Added Tax (VAT) and Withholding Tax (WHT) in full, regardless of any pending legal debates surrounding the reforms. These transaction taxes have emerged as critical compliance priorities for organisations across the country. Overall, the suite of new tax laws—including the Nigeria Tax Administration Act, the Nigeria Revenue Service (Establishment) Act, the Joint Revenue Board (Establishment) Act and the Nigeria Tax Act—signals a move away from routine compliance toward urgent operational realignment. Under the new rules, individuals earning N800,000 or less annually are exempt from income tax, while higher earners are taxed on a graduated scale, with rates rising to 25 per cent for top income brackets. The VAT framework has also been expanded, allowing companies to claim input VAT on services and fixed assets, in addition to goods purchased for resale or production. Furthermore, the law mandates the use of electronic fiscalisation systems, including e-invoicing, for VAT collection and reporting. On WHT, companies are required to deduct and remit taxes promptly, with penalties for non-compliance reaching up to 40 per cent of the unpaid amount, alongside interest charges and possible criminal liability. Speaking on the implications of the reforms at the 2026 Nigeria Economic Outlook organised by FirstBank in Lagos, Kenneth Erikume, Partner, Tax Reporting and Strategy at PwC, identified payroll and the automation of VAT and WHT processes as the most urgent issues for businesses. He warned that failure to comply could attract severe penalties. According to him, payroll systems must be updated immediately to reflect the new tax thresholds and rates, as staff salaries are paid monthly. He explained that incomes up to N800,000 are now exempt, with higher earnings taxed progressively, and income above N50m subject to a 25 per cent rate. As a result, employees earning below N25m annually are likely to see higher take-home pay, while those above that level may experience reduced net income due to higher tax obligations. Erikume noted that this creates a human capital challenge, as organisations may need to decide whether to absorb part of the increased tax burden for higher-earning staff. He stressed that payroll adjustments are the most immediate concern and require urgent attention. He further emphasised that VAT and WHT are equally critical areas. He described the VAT reforms as a major opportunity for cost reduction, noting that businesses can now potentially lower costs by up to 7.5 per cent through expanded VAT claims on overheads and fixed assets. He explained that VAT on costs should now be treated as a recoverable asset rather than an expense, allowing it to be offset against output VAT during filing. However, he cautioned that systems must be updated to capture this correctly. Erikume also highlighted compliance risks related to dealing with vendors without Tax Identification Numbers (TINs). Under the new rules, transactions with unregistered vendors can attract penalties of up to N5m. This, he said, requires businesses to strengthen vendor onboarding and validation processes, including in cases involving informal suppliers or reimbursements. On WHT, he warned that errors in deduction or remittance could result in penalties of up to 40 per cent, making automation essential to reduce risks associated with manual processes. He stressed the need for close collaboration between finance and IT teams to ensure accurate implementation based on the final version of the law passed by the National Assembly. Adding a legal perspective, corporate and technology lawyer Nneoma Agwu-Okoro, in her Legal Bytes newsletter, noted that all VAT-able transactions must be calculated, collected and remitted accurately and on time. She stressed that WHT deductions on payments to contractors, suppliers and service providers must also be handled correctly, particularly for fintechs and businesses with high transaction volumes, where automation is crucial to prevent cumulative liabilities that could erode profits. She urged businesses to maintain strict compliance across all operations, including low-margin activities, by keeping monthly reconciliations, proper documentation and clear audit trails. She noted that tax authorities now have the capacity to cross-check bank accounts, payment platforms and TIN-linked records, making proactive compliance essential. PwC’s 2025 Nigerian Tax Reforms Insight Series further advises that all taxable individuals and entities must register for tax and obtain a TIN to avoid significant penalties. Awarding contracts to unregistered persons now attracts fines of up to N5m, while late or inaccurate filings result in escalating monthly penalties. Adequate record-keeping, timely responses to tax authority requests and the use of approved electronic fiscalisation systems are also mandatory, with non-compliance attracting daily penalties and interest. Special caution is advised for operators in the petroleum and mineral sectors, who face some of the heaviest sanctions for late filing or payment, including daily fines, interest linked to prevailing financial benchmarks, and the risk of asset seizure or licence cancellation. Businesses are therefore encouraged to adopt robust compliance systems, including automated reminders, regular internal audits and prompt engagement with tax authorities, to mitigate risks under the new tax regime.

There is cautious optimism among liquefied petroleum gas (LPG) retailers as improved availability has helped stabilise prices, with cooking gas now selling between N1,000 and N1,400 per kilogramme, depending on location and seller. A recent market survey indicates that LPG supply improved toward the end of 2025, easing the acute shortages experienced in September and October last year. Consumers in Lagos, Ogun, Oyo and several other states reported purchasing cooking gas at prices ranging from N1,050 to N1,400 per kilogramme. Findings also revealed that some major marketers sold LPG directly to consumers at about N900 per kilogramme. For many buyers, current prices represent a significant improvement compared to the sharp increases recorded during the period when a dispute between the Dangote Refinery and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) led to the shutdown of gas facilities in September and October. Despite the relative stability, many consumers remain hopeful that prices will fall below N1,000 per kilogramme in the new year, noting that more affordable rates are crucial to promoting clean cooking. Commenting on the situation, the National Chairman of the Liquefied Petroleum Gas Retailers branch of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), Ayobami Olarinoye, said the LPG market has become relatively stable, with some off-takers now receiving supplies in Apapa, Lagos. He stated that retail prices currently range between N1,300 and N1,400 per kilogramme, depending on neighbourhoods. According to him, prices may be lower at filling stations and gas plants, as factors such as location and logistics costs significantly influence final retail prices. Olarinoye explained that retailers currently purchase LPG from major marketers at between N960 and N1,050 per kilogramme. He added that sellers offering gas below N1,000 per kilogramme are mostly plant owners who sell directly to end users rather than through distributors. He recalled that cooking gas prices surged from an average of about N1,000 per kilogramme to nearly N2,000 per kilogramme in some areas in October following the industrial action by PENGASSAN during the dispute with the Dangote Refinery. The Dangote Refinery had previously pledged to drive down LPG prices by selling directly to consumers.

The Federal Government incurred N1.98tn in electricity subsidy obligations between October 2024 and September 2025, as it continued to struggle with over N4tn in debt owed to power generation companies, according to quarterly reports by the Nigerian Electricity Regulatory Commission (NERC). The fourth-quarter 2024 subsidy stood at N471.69bn, rising to N536.4bn in Q1 2025 and N514.35bn in Q2 2025. The latest NERC report showed that in Q3 2025, the government’s electricity subsidy burden amounted to N458.75bn, bringing the 12-month total to N1.98tn. The subsidy remains necessary as electricity tariffs are still below cost-reflective levels. NERC explained that, in the absence of cost-reflective tariffs, the government covers the gap between actual generation costs and approved tariffs through subsidy payments. Subsidy payments are applied at source via the DisCos’ payment obligations to the Nigerian Bulk Electricity Trading Plc (NBET), under the DisCo Remittance Obligation (DRO) framework introduced in January 2024 to replace the Minimum Remittance Obligation regime. This framework ensures DisCos meet generation cost obligations while the Federal Government directly settles the subsidy portion. In Q3 2025, DisCos achieved a 95.23 per cent remittance rate to NBET, slightly down from 95.77 per cent in Q2. While most DisCos met 100 per cent of their obligations, Kano, Benin, Jos, and Kaduna fell short, with Kaduna performing the weakest at 40.16 per cent. On payments to the Market Operator, DisCos recorded 95.13 per cent remittance in Q3, slightly up from 95.07 per cent in the previous quarter. Despite marginal improvements in billing and collections, DisCos recorded combined billing losses of N315.17bn between Q2 and Q3, primarily due to energy theft, poor metering, and weak commercial controls. Energy offtake for Q3 was valued at N854.53bn, but only N706.61bn was billed, yielding a billing efficiency of 82.69 per cent. Revenue collection was N570.25bn, giving a collection efficiency of 80.70 per cent, an improvement from 76.07 per cent in Q2. The weighted aggregate technical, commercial, and collection loss remained high at 33.27 per cent, exceeding the 2025 MYTO target of 20.54 per cent. Only Eko and Ikeja DisCos met the target, while Kaduna recorded the highest loss at 71.10 per cent. Experts argue that the electricity subsidy is no longer sustainable. Adetayo Adegbemle, convener of PowerUp Nigeria, said the subsidy affects the entire value chain, as the government has failed to meet its obligations, and urged the development of alternative support mechanisms such as the Power Consumer Assistance Fund. Consumers’ advocates also criticized the service-based tariff policy. Uket Obonga, National Secretary of the Nigeria Electricity Consumers Advocacy Network (NECAN), described the Band A tariff regime as ineffective, noting that revenue collected by DisCos is now nearly equal to government subsidy payments. He further raised concerns about poor electricity supply, high tariffs, and limited industrial customer participation, arguing these factors have undermined the original objective of the tariff structure. Obonga also questioned the impact of the Federal Government’s N4tn electricity bond, issued to address legacy debts, noting a lack of transparency and clarity on its effectiveness in stabilizing the sector.      

Pension operators in Nigeria face a major recapitalisation challenge, with analysts estimating that about N276.8 billion will be needed to meet the new minimum capital requirements set by the National Pension Commission (PenCom) during the first full year of the exercise. According to Coronation’s Year in Review and 2026 Outlook on Nigeria, only three Pension Fund Administrators (PFAs) — Stanbic IBTC Pension, Access ARM Pensions, and Leadway Pensure — had capital well above the N20 billion benchmark, highlighting the significant funding gap across the sector. In September 2025, PenCom raised the minimum capital requirement for PFAs to N20 billion and Pension Fund Custodians to N25 billion under the Pension Revolution 2.0 initiative. PFAs were categorised into three groups: Category A: PFAs with over N500 billion in Assets Under Management (AUM), requiring N20 billion plus 1% of AUM above N500 billion. Category B: PFAs with less than N500 billion in AUM, requiring a minimum of N20 billion. Category C: Special-purpose PFAs, including NPF Pensions Limited (minimum N30 billion) and Nigerian University Pension Management Company Limited (minimum N20 billion). While the original compliance deadline was December 2026, PenCom extended it to June 2027, giving operators an additional six months to meet the new requirements. To achieve the recapitalisation targets, PFAs are expected to leverage multiple strategies, including retained earnings, shareholder injections, rights issues, private placements, and mergers or acquisitions. Coronation analysts noted: “The immediate effect of the new capital requirement is that almost all PFAs will need to raise additional equity over the next 15 months. Out of 18 PFAs in Nigeria, only three — Stanbic IBTC Pension, Access ARM Pensions, and Leadway Pensure — had capital above N20 billion before the announcement. Collectively, the sector needs roughly N276.8 billion to comply by 2026.” The report details the capital shortfalls of key operators: Stanbic IBTC Pension:9 trillion AUM, shareholders’ funds N45.4 billion; requires N73.9 billion total, leaving a shortfall of ~N28.5 billion. Access-ARM Pension:5 trillion AUM, shareholders’ funds N22.8 billion; total requirement ~N50 billion, needing ~N27–28 billion additional. Leadway Pensure:8 trillion AUM; requires ~N33.1 billion, with an estimated N25.5 billion gap. Other PFAs: NPF Pensions, Premium Pensions, Trustfund Pensions, and FCMB Pensions need to raise N22.6 billion, N18.7 billion, N4.9 billion, and N12 billion respectively. Coronation predicts a wave of consolidation similar to the 2004 banking sector reforms. Smaller PFAs unable to meet the N20 billion threshold may merge with or be acquired by larger, stronger operators. Evidence of this is already emerging: in October 2025, Verod Capital sold its majority stake in Tangerine APT Pensions to APT Securities, citing PenCom’s recapitalisation mandate as a driver for the strategic restructuring. The analysts also highlighted potential globalisation of Nigeria’s pension assets, noting that by 2026, one or two PFAs may pilot dollar-denominated funds for qualified clients, investing in Eurobonds and other USD assets — a landmark for the industry. Meanwhile, Meristem Securities’ 2026 outlook forecasts growing PFA interest in infrastructure funding. Investments in infrastructure, which are lowly correlated with equities and bonds, offer diversification, inflation hedging, and resilience during market volatility. Pension fund allocations to infrastructure rose 49.4% year-on-year to N242.8 billion in H1 2025, up from N162.48 billion in H1 2024, reflecting stronger investor appetite for these assets. This recapitalisation push, coupled with strategic investments, is expected to reshape the Nigerian pension sector, enhancing both stability and long-term growth prospects.