We Have 72,846 Participants On Micro-pension As 11 PFAs Meet N5bn Capital requirement-PenCom

By LOVETH AZODO, Lagos

The National Pension Commission (PenCom) has revealed that 72,846 participants have subscribed to the Micro pension scheme as at the end of November, 2021.

This is just as the commission assured that there is no cause for alarm on its recapitalization exercise as 11 of the Pension Fund Administrators (PFAs) have met the recapitalization requirement.

The Head of Micro Pension Department, PenCom, Mr Dowda Ahmed, who made the disclosure Today at the Pension Fund Operators Association of Nigeria (PenOp) Annual Media Parley in Lagos reiterated that the Micro Pension Plan is a long term voluntary financial plan for the provision of pension coverage to the self employed and persons working under organisations with less than three employees who are mainly in the informal sector.

According to him, the commission has expected more than what it has recorded he said that the commission has engaged some stakeholders to ensure that the MPP has an enabling environment to thrive.

“Yes we are not making so much as expect, a lot of work has been going on to that factor. Our targeted media campaign is co in up, our major challenge is lack of awareness about the products itself and there is need for for operator and commission to do more to create awareness. Stakeholders has been engaged to make sure we have enabling environmental for the mop to succeeds. Next year there will be a lot of activities to ensure we drive the Micro Pension plan. “

Also speaking , the Managing Director/CEO, Access Pension Fund Custodian, Idu Okwuosa; revealed that a committee has been setup by the Commission to commence massive campaign next year.

On recapitalization exercise, the Head Surveillance, PenCom, Mr Ehimeme Ohioma disclosed that about 10 PFAs have met the recapitalization requirment of increasing their  minimum capital base to N5 billionApril, 2021, The Commission increased the minimum shared capital from 1bn to 5bn.

“The PFAs have been responsive to it, there have been on going consolidations, Some PFAs have merged some are been acquired, it is a business opportunity to some the big players in the financial sector to come into the sector.”

“So we see guarantee trust bank acquiring one of t he PFAs , so we see fcmb merging with AIICO insurance, it is at the final stage. So far about 10 to 11 PFAs have already met the N5bn recapitalization and others are either going under mergers and acquisition or raising capital to meet requirements. So we don’t expect any challenges within the industry in terms of the bail ofbthe pfas to meet the requirement.”

Ohioma assured that on or before the end of February 2022 the commission will have a firm picture of what the industry is going to look like before April 2022 deadline.