PFA recapitalization continues as NIN obstructs pension data retrieval exercise

From April 2021 to today, no less than 11 pension fund administrators (PFA) crossed the minimum capital threshold of 5 billion naira as requested by the National Pensions Commission (PenCom) for pension operators are doing so, even though four of the 11 ATPs have adopted M&A options to recap, LEADERSHIP has learned.

It is at the same time that the challenges faced by the Retirement Savings Account (RSA) in obtaining its National Identification Number (NIN) are gradually undermining the exercise of data retrieval in the pension sector.

Recapitalization of ATP

No less than 11 pension fund administrators (PFAs) increased their shareholder fund from 1 billion naira to 5 billion naira, four months before April 2022, the deadline given to all PFAs in the country to do so, learned LEADERSHIP.

The National Pensions Commission (PenCom) previously mandated the country’s 22 pension fund administrators to raise additional capital of N4 billion out of the existing minimum capital of N1 billion, so that by April 2022 , each of them has a minimum shareholder fund of 5 billion naira. .

The results show that Stanbic IBTC Pension Managers, ARM Pension Managers Limited, NPF Pension Limited, First Guarantee Pension Limited, Leadway Pensure Limited, Premium Pension Limited, among others, have so far recapitalized to the new threshold.

Likewise, four pension fund administrators could undertake mergers and acquisitions before the April 2022 deadline stipulated for pension companies to increase their minimum capital from 1 billion naira to 5 billion naira.

The results show that PenCom had granted a “no objection” approval to Guaranty Trust Holding Company to acquire 100 percent of the shares of Investment One Pension Managers Limited.

Likewise, the committee is also said to have granted a “no objection” approval to FCMB Pensions Limited for the next phase of acquisition of 60% of the shares of AIICO Pension Managers Limited.

At the same time, AXA Mansard Pensions Limited renamed and changed its name to Tangerine Pensions Limited, following the completion of the acquisition of 100% of the shares of AXA Mansard Pensions Limited by Verod Capital Management Limited.

Confirming this development at the Nigerian Pension Fund Operators Association (PenOp) 2021 media conference in Lagos, Supervisory Officer, PenCom, Mr. Ehimeme Ohioma, revealed that around 10 or 11 PFAs increased their minimum capital to 5 billion naira.

For her, the objective of the recapitalization exercise was to improve the financial stability and operational efficiency of the industry.

According to her, “this is the second exercise of recapitalization of the industry within the current CPS. This is because the industry has grown and assets have grown, therefore, it is necessary.

“They (ATPs) need to retain the real skilled workers. We need to attract talent. There is a need for digitization. It will also cost money and ensure efficiency especially with Covid-19. The exercise is therefore ripe and we are looking to have big players in the industry, ”she underlined.

Likewise, the president of PenOp, Mr. Wale Odutola, assured that the remaining PFAs would have completed their recapitalization exercise no later than February 2022, believing that all the PFAs would evolve because they are all at an advanced stage of their recapitalization. exercise in industry.

Data recovery exercise

Meanwhile, as many as 70 million Nigerians are struggling to obtain their national identification number (NIN) from the National Identity Management Commission (NIMC), within days of December 31, 2021, the deadline for linking the SIM card to the NIN, the LEADERSHIP survey can now reveal.

In recent weeks, registration and issuance of the NIN has been slower due to the downtime of the NIMC server. To this end, those whose NIN has already been issued were unable to verify and print it for the NIN-Sim link, while the majority whose registration was done at NIMC registration centers were unable to verify and print for the NIN-Sim link. not yet processed their data as a result of this.

These issues, the results also revealed, have prevented some retirees from accessing their pension entitlements after retirement, as they are expected to submit their data to their pension fund administrators (PFAs), whose NIN is a major requirement. , before they can get their pensions. .

The pension industry decided, in 2019, to recover the data of pension contributors following the previous registration during the implementation of the new pension scheme in 2004.

There were issues of multiple identity, incomplete information, and more, which the current recovery exercise should address.

But with NIN critical information and the ongoing exercise and challenges of obtaining an NIMC ID number, the exercise has somewhat slowed down.

Several months after their retirement, some still do not have an identity number that is essential for their retirement.

Micro pension scheme

Likewise, this development affects the adoption of the Micro Pension Plan (MPP) as the NIN is also a major requirement for its subscription.

The Micro pension scheme, which started in the last quarter of 2020, has grown at a slow pace in 2021, as around 72,000 people have so far joined the scheme.

The pension regulator, the National Pensions Commission (PenCom), had previously provided guidance for the implementation of micro-retirement plans in the country.

The implementation of the Micro-Retirement Plan (MPP) should extend financial inclusion to the informal sector of the economy by ensuring that micro-retirement contributors provide functional bank accounts for their contributions and withdrawals in the process. savings to meet their retirement needs. , in anticipation of the possible reduction in earning capacity in old age.

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