Pension Managers:  Capital Requirement Increase Spurs Merger Talks

Pension Managers:  Capital Requirement Increase Spurs Merger Talks
As the country increased the capital requirement for pension managers, many have said the policy would steer in  the Pension sector,  fund management industry to target untapped opportunities in the much larger, informal sector of small business.
The recapitalisation is spurring operators to  look together Merger and acquisitions.
For instance three pension managers are in talks to merge to meet the new capital requirement of 5 billion naira ($13.14 million) by next year.
According to some Pension practioners, Pension funds currently operate with 1 billion naira capital.
Fund managers include Stanbic IBTC Pension Managers, a unit of Stanbic IBTC Holdings, Sigma Pensions, which sold a majority stake to private equity firm Actis, and several others with either banking or insurance parent companies.
Nigeria’s pension funds were worth around 12.3 trillion naira as of March, up from 10.5 trillion naira in 2019.

Online Editor

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