The National Pension Commission (PenCom) has ordered recapitali-sation in the pension industry, The Nation has learnt.
The Commission has raised the shareholders’ funds of PFAs from N1 billion to N5 billion.
The commission confirmed this to the newspaper in a telephone conversation yesterday.
Pension operators, who spoke with the newspaper, said they received a circular in this regard from the Commission this week.
A source in one of the leading PFAs revealed that the Commission gave them one year to comply with the new capital.
She said the discussion to raise the fund has been on for a while now, noting that the increase became imperative recently.
She said: “With recent development in the world like COVID-19, the commission made PFAs to know that there is need to raise the fund so that the companies can remain strong enough to wheather storm.
“We need to invest in infrastructure, technology, among others. This discussion has been ongoing and everybody just understood that it has become imperative for us to increase pour shareholder’s fund.”
