Pencom Extends Pension Recapitalisation Deadline to June 2027

The National Pension Commission (PenCom) has extended the pension industry recapitalisation deadline from December 2026 to June 2027.

The announcement was made by PenCom Director-General, Ms. Omolola Oloworaran, during the 2025 PenCom Media Conference in Lagos, where she also dismissed rumours that the recapitalisation exercise had been suspended.

Under the revised directive, licensed pension fund operators now have an additional six months to meet the minimum capital requirements (MCR). The new framework categorises operators into three groups:

• Category A: PFAs with Assets Under Management (AUM) of N500 billion and above, requiring a minimum capital of N20 billion plus 1% of AUM above N500 billion.
• Category B: PFAs with AUM below N500 billion, required to raise their capital to N20 billion.
• Category C: Special-purpose PFAs, including NPF Pensions Limited (minimum capital N30 billion) and the Nigerian University Pension Management Company Limited (minimum capital N20 billion).

Addressing the conference themed “Pension Revolution Summit: A 365 Days Scorecard”, Oloworaran emphasised that recapitalisation is ongoing and mandatory. “Every operator must comply by June 2027. Non-compliance will result in licence revocation,” she said.

She noted that most PFAs are actively working to raise additional capital or exploring mergers and acquisitions. “The recapitalisation exercise is on track, and the industry supports this initiative,” she added.

Oloworaran also highlighted efforts to improve employer compliance with pension remittances. PenCom has signed a Memorandum of Understanding with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) and is collaborating with labour unions to enforce contributions. “Our regulatory focus is ensuring employers remit pension contributions. Enforcement measures are already producing results, with recoveries from defaulting employers increasing,” she said.

Additionally, PenCom announced the pilot of the Pension Industry Healthcare Initiative (PenCare), set to launch in March 2026. The initiative will initially target around 30,000 low-income retirees nationwide, providing free and accessible healthcare to ease financial burdens and ensure dignified retirement.

Oloworaran stated, “Retirement should be a season of peace, not anxiety over medical bills. PenCare reflects the government’s commitment to improving the welfare of pensioners, particularly those with limited income, and aligns with the Renewed Hope Agenda.”

The Acting MD/CEO of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, described PenCare and ongoing initiatives as laying a strong foundation for the coming year. “The pension industry is a cornerstone of the Nigerian economy, mobilising long-term capital, supporting financial markets, funding infrastructure, and providing dignity in retirement. Our focus will be on engagement, education, collaboration, and transparency,” she said.

Ahmed Lawan, Acting Director of Compliance and Enforcement at PenCom, explained that PenCare will be funded by both the regulator and licensed PFAs through a corporate social responsibility (CSR) model, with no deductions from retirees’ contributions. “The initiative aims to protect retirees from health-related poverty, strengthen social responsibility, and build public trust,” he added.