Premium Pension and Trustfund Pensions Merge, Create Third-Largest PFA with N3.08 Trillion in Assets
By Aboki Forex —
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. The move will create the country's third-largest Pension Fund Administrator (PFA) by assets under management.
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.
Combined Entity to Manage Nearly N3.08 Trillion
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 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.
PenCom Recapitalisation Deadline Drives Consolidation
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. PenCom set a June 2027 recapitalisation deadline, warning that any non-compliant PFA will have its operating licence revoked.
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. The new institution also plans to diversify its pension product offerings and extend coverage to workers in both the formal and informal sectors.
RSA Holders Assured of Uninterrupted Service
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.
In a related development, Providus Bank and Unity Bank Plc have commenced the migration of their respective social media platforms to a unified digital identity, ProvidusUnity Bank, following the successful completion of their merger towards establishing a robust financial institution.
For Nigerian pension contributors and the broader economy, this merger signals a wave of consolidation that could strengthen the pension industry ahead of the 2027 recapitalisation deadline, potentially improving fund management and returns for RSA holders.