The Contributory Pension Scheme (CPS) in Nigeria requires pension funds to be privately managed exclusively by licensed Pension Fund Administrators (PFA).
The PFAs are primarily established to:
Open Retirement Savings Account (RSA) for employees.
Invest and manage pension fund assets.
Pay retirement benefits.
Account for all transactions relating to the pension funds under their management[1].
There are 19 Pension Fund Administrators (PFAs) in Nigeria as follows:
ARM Pension Managers (PFA) Limited
Access Pensions Limited
Crusader Sterling Pensions Limited
Fidelity Pension Managers Limited
FCMB Pensions Limited
Guaranty Trust Pension Managers Limited
Leadway Pensure PFA Limited
Nigerian University Pension Management Company (NUPEMCO)
NLPC Pension Fund Administrators Limited
Norrenberger Pensions Limited
NPF Pensions Fund Administrators Limited
OAK Pensions Limited
Pensions Alliance Limited (PAL Pensions)
Premium Pension Limited
Radix Pension Managers Limited
Stanbic IBTC Pension Managers Limited
Tangerine APT Pensions Limited
Trustfund Pensions Limited
Veritas Glanvills Pensions Limited
Pension Assets
The total pension assets were ₦13.4 trillion in 2021 and grew to ₦15.0 trillion in 2022.
Based on market data as of 31 December 2021, Stanbic IBTC Pension Managers is the industry market leader, with 37.37% of the market share of RSA Funds.
ARM Pension Managers, Premium Pension and Access Pensions are in distant second, third and fourth positions with market shares of 8.72%, 7.27% and 7.23% respectively.
Pension Assets in Nigeria by Market Players - 2021[2]
PFAs in Nigeria are institutions responsible for managing and administering pension funds on behalf of contributors to the country's Contributory Pension Scheme. They play a pivotal role in safeguarding the retirement savings of Nigerian workers and ensuring proper investment and distribution of pension funds.
Source: [1] Pension Fund Administrators. Accessed on 17 August 2023 from https://www.pencom.gov.ng/pension-fund-administrators/
[2] 2021 Annual Report by the National Pension Commission. Assessed on 18 August 2023 from chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.pencom.gov.ng/wp-content/uploads/2022/07/2021-ANNUAL-REPORT-DRAFT-12-1-LPFOs-Final.pdf
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