Premium Pension, Trustfund Merge Ahead Recapitalization Deadline

Premium Pension Limited and Trustfund Pensions Plc have announced plans to merge as pension fund administrators move to comply with the National Pension Commission’s (PenCom) revised capital requirements ahead of the June 2027 deadline.

The planned consolidation was disclosed by the Federal Competition and Consumer Protection Commission (FCCPC) in a merger notice dated July 7.

According to the commission, the merged entity will operate as Premium Trustfund Pensions Limited once the transaction is completed.

FCCPC said the merger will be carried out through a scheme of merger under Section 711 of the Companies and Allied Matters Act (CAMA) 2020 and remains subject to the approval of the relevant regulatory authorities.

The commission noted that the transaction is expected to create Nigeria’s third largest Pension Fund Administrator (PFA).

Premium Pension and Trustfund Pensions are currently the country’s fifth and sixth-largest PFAs, respectively.

As part of the arrangement, all assets, liabilities and obligations of Premium Pension will be transferred to Trustfund Pensions, after which Premium Pension will be dissolved without undergoing a formal winding up process.

Both companies were licensed by PenCom in December 2005 and 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 Pension Scheme and voluntary contribution funds.

The proposed merger comes as PFAs position themselves to meet PenCom’s revised capital requirements introduced in September 2025.

Under the new framework, pension fund administrators are required to increase their minimum capital base from N2bn to N20bn by June 2027.

In addition, operators with assets under management exceeding N500bn must maintain additional capital equivalent to one per cent of the excess assets.

PenCom Director-General, Omolola Oloworaran, had earlier urged operators unable to meet the new capital threshold to consider mergers or acquisitions, warning that any PFA that fails to comply by the deadline risks losing its operating licence.

The companies said the merger is expected to improve operational efficiency, lower costs and strengthen investment management capabilities.

They added that the enlarged institution will leverage its combined branch network and digital platforms to enhance service delivery, broaden its range of pension products and expand coverage across both the formal and informal sectors.

The proposed consolidation follows PenCom’s approval of the merger between ARM Pension Managers Limited and Access Pensions Limited in October 2024, which resulted in the formation of Access ARM Pensions Limited.