Premium Pension, Trustfund to merge ahead of PenCom’s recapitalisation deadline

Premium Pension and Trustfund Pensions have proposed a
merger to meet the recapitalisation requirement set by the National Pension
Commission (PenCom) ahead of the June 2027 deadline.

 

The Federal Competition and Consumer Protection Commission
(FCCPC) announced the planned consolidation in a merger publication dated July
7.

FCCPC said the combined entity would operate as Premium
Trustfund Pensions Limited upon completion of the transaction.

The commission said the merger would be implemented through
a scheme of merger under Section 711 of the Companies and Allied Matters Act
(CAMA) 2020.

According to the commission, the proposed transaction, which
is subject to regulatory approvals, would create Nigeria’s third-largest PFA.

FCCPC said Premium Pension and Trustfund Pensions are
currently the fifth and sixth largest PFAs, respectively.

Under the arrangement, the commission said all assets,
liabilities and undertakings of Premium Pension would be transferred to
Trustfund Pensions, after which Premium Pension would be dissolved without
being wound up.

Both firms were licensed by PenCom in December 2005 to
operate as PFAs.

They currently manage retirement savings account (RSA) Funds
I to VI, including the micro pension Fund, non-interest Shari’ah-compliant
funds, approved existing schemes, the transitional contributory Fund and
voluntary contributions.

The proposed merger comes as PFAs move to comply with
PenCom’s revised capital requirements introduced in September 2025.

Under the framework, PFAs are required to raise their
minimum capital base from N2 billion to N20 billion by June 2027.

Operators with assets under management above N500 billion
must also maintain additional capital equivalent to 1 percent of the excess
assets.

Omolola Oloworaran, director-general of PenCom, had
previously said at the 2025 Pension Revolution Summit in Lagos that operators
unable to meet the new capital threshold should pursue mergers or acquisitions.

“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 licence revoked. It’s that simple,” she said.

The companies said the proposed merger would improve
operational efficiency, reduce costs and strengthen investment management
capabilities.

They added that the enlarged institution would leverage its
combined branch network and digital platforms to improve service delivery,
diversify pension products and expand coverage across Nigeria’s formal and
informal workforce.

In October 2024, PenCom approved the merger between ARM
Pension Managers (PFA) Limited and Access Pensions Limited to form a new entity
named Access ARM Pensions Limited.

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