PenCom has stepped in to ease growing tensions in Nigeria’s pension industry after September 2025 reforms sparked concern.
The original rules excluded Statutory Reserve Funds (SRF) from capital calculations, alarming mid-tier and smaller PFAs.
Many operators warned the provision could create financial strain despite maintaining healthy reserve balances.
PenCom Steps In
Recognising these challenges, PenCom issued an addendum on November 12, 2025 to clarify the rules and provide relief.
The addendum allows PFAs to include SRF as part of shareholders’ funds, immediately reducing capital adequacy pressure.
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This change gives operators more flexibility to align internal resources with regulatory requirements, easing operational strain.
Surcharge Adjustments Reduce Burden
Category A PFAs, the largest operators, now exclude certain funds from the 1% capital surcharge.
Personal Pension Plans, Foreign Currency Funds, and Additional Benefit Schemes no longer count in surcharge calculations, reducing the extra capital needed.
Extended Deadline Provides Breathing Space
PenCom also extended the compliance deadline to June 30, 2027, giving 18 extra months for adjustments.
Operators can raise equity, retain earnings, restructure ownership, or merge to meet capital thresholds.
By responding to industry concerns, PenCom clarified rules while maintaining systemic stability, offering PFAs room to manage growing assets.
