Following the recent recapitalisation of Pension Fund Administrators (PFAs) in Nigeria carried out by the National Pension Commission (PenCom), the Industrial and General Insurance (IGI) Pension Fund Managers Limited and Citi Trust Pension Managers Limited failed to meet the minimum capital requirement.
Releasing the list of Pension Fund Administrators that met up with PenCom’s deadline in compliance with the minimum capital requirement for Pension Fund Administrators (PFAS) in the country, the Head of Communication Unit, PenCom, Mr. Emeka Onuora, said that the Commission had issued 28 days notice of its intention to revoke IGI and Citi Trust Pension Managers Limited operating licences in accordance to the provisions of Section 54 of the Pension Reform Act (PRA) 2004.
According to the statement, ARM Pension Managers (PFA) Limited, Leadway Pensure PFA Limited, Premium Pension Limited, Sigma Pensions Limited (Sigma), Stanbic IBTC Pension Managers Limited and Trustfund Pensions Plc were the the PFAs that met the minimum capital requirement before the Circular was issued and whose capital had been verified.
The statement said: “Aiico Pension Managers Limited, APT Pension Fund Managers Limited, Crusader Sterling Pensions Limited, Fidelity Pension Managers Limited, Future Unity Glanvills Pensions Limited, IEI-Anchor Pension Managers Limited, NLPC Pension Fund Administrators Limited, Legacy Pension Managers Limited, Oak Pensions Limited (Oak), Pensions Alliance Limited, Penman Pensions Limited and Royal Trust Pension Fund Administrator Limited are the PFAs that met the minimum capital requirement after the issuance of the Circular subject to capital verification”.
The statement also noted that Amana Capital Pension Limited acquired by Sigma Pensions Limited (Sigma), Crib Pension Fund Managers Limited acquired by Oak Pension Limited (Oak) and Evergreen Pensions Limited acquired by Oak Pension Limited (Oak) are among other Pension Fund Administrators (PFAs) that had their pension assets acquired by other Operators.
The National Pension Commission (PenCom) added that First Guarantee Pension Limited has been under regulatory intervention.
The Commission however assured the public, particularly the contributors of the two affected PFAs of the safety of their pension fund assets even in the event of the revocation of the licences of the PFAs.
“This is due to the fact that the pension fund assets are securely in the custody of Pension Fund Custodians licensed and strictly supervised by the Commission in accordance with the PRA 2004”, the statement said.
In a swift reaction, the Industrial and General Insurance (IGI) Plc refuted the report by Pencom that its licence to carry on the business of a Pension Fund Administrator (PFA) has been revoked by the regulatory authority.
A statement issued in Lagos by the IGI management also expressed dismay that the impression was created that it failed to meet the minimum capital requirements of N1 billion set for licensed PFAs.
Describing the claims as unfair, embarrassing and misleading, the company explained that it actually recapitalised as required by PenCom by pooling together cash and assets which amounted to far more than the specified sum of N1 billion.
The Deputy Managing Director, Mr. Rotimi Fashola, said: “It is unfair and erroneous to make the public believe that IGI PFA failed to meet the recapitalisation requirement when the company capitalised up to N1.5 billion, in cash plus property. This amount is N500 million above the mark set by PenCom”.
“For the avoidance of doubt, let me state categorically without any fear of contradiction that it is outright falsehood that our PFA license has been revoked. Our license is intact and we remain a leading player in the industry”.
Fashola noted, however, that the commission raised some administrative issues relating to going concerns which the company is expected to address within 28 days.
According to him: “It is true that PenCom has sought clarifications from us on some matters, but the process of recertification is ongoing and every grey area will be resolved before the 28-day deadline given by PenCom in accordance with the law. We are making representation to the commission and are of strong conviction that it will reconsider its position after listening to us.”
The management assured their customers of the company’s commitment to serving their interests at all times, in line with IGI’s corporate values of integrity, dependability and responsiveness.