2 Pension Companies Merge, Announce New Name Ahead of Recapitalisation Deadline
- Premium Pension and Trustfund Pensions agreed to merge, creating a combined entity called Premium Trustfund Pensions Limited
- The merged firm will manage nearly N3.08 trillion in pension assets, ranking third among all PFAs in Nigeria by assets under management
- PenCom set a June 2027 recapitalisation deadline, warning that any non-compliant PFA will have its operating licence revoked
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Two of Nigeria's established pension fund managers, Premium Pension and Trustfund Pensions, have announced plans to merge into a single institution to be known as Premium Trustfund Pensions Limited, in a move that would create the country's third-largest Pension Fund Administrator (PFA) by assets.
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Pension market merge
The merger notification was published through the Federal Competition and Consumer Protection Commission (FCCPC) and remains subject to regulatory approvals, BusinessDay reports.
According to the FCCPC notification, the merger will be implemented through a Scheme of Merger under Section 711 of the Companies and Allied Matters Act (CAMA) 2020.
The commission stated:
“The merger affects the Nigerian Pension Fund Administration (PFA) market. Premium Pension and Trustfund Pensions are currently the fifth and sixth largest PFAs, respectively. Following the merger, the combined entity is projected to rank third."
Once completed, the combined entity will manage nearly N3.08 trillion in assets under management, ranking behind Stanbic IBTC Pension Managers and AccessARM Pensions.
The announcement comes as pension operators across Nigeria move to comply with the National Pension Commission's (PenCom) new minimum capital requirements, which have prompted several consolidation moves across the industry.
The two companies said the transaction is designed to harness their combined strengths, with anticipated benefits including stronger investment management, improved operational efficiency, cost optimisation and a broader service network supported by enhanced digital platforms.
The new institution also plans to diversify its pension product offerings and extend coverage to workers in both the formal and informal sectors.
Both firms assured Retirement Savings Account (RSA) holders that pension services will continue without interruption during the integration process, and that contributors should anticipate greater stability and a better overall service experience.
The merged company said it would also prioritise sustainable growth, stronger governance and long-term value creation for contributors and other stakeholders.
Source: Getty Images
Nigeria's total pension assets have grown to more than N31 trillion, a figure PenCom cited as justification for raising the capital thresholds across the industry.
2 Nigerian banks become one
In a related development, Legit.ng reported that Providus Bank and Unity Bank Plc have commenced the migration of their respective social media platforms to a unified digital identity, ProvidusUnity Bank.
The rebranding followed the successful completion of the merger of the two Nigerian financial institutions towards establishing a robust financial institution.
In a statement shared on its X page, now ProvidusUnity Bank, the banks said the combination of the two lenders presents an opportunity to combine complementary strengths and enhance the institution's ability to provide even better services to the diverse individual, business and community stakeholders in Nigeria.
Source: Legit.ng
