E-Financial
PenCom Probes PFAs’ Funds as Deadline for Recapitalization Ends Today
The National Pension Commission is investigating the nation’s Pension Fund Administrators evidence of meeting its new capital requirements ahead of the April 30, 2022 recapitalisation deadline, findings have revealed.
Sources among the operators said many of the PFAs submitted their evidence of recapitalisation this week, as they stepped up efforts to scale the regulatory hurdle.
Industry operators, who spoke to our correspondent, said PenCom was investigating the capital raising activities of the PFAs.
This was meant to ascertain whether the funds were appropriately and legitimately sourced or raised.
An operator, who spoke to our correspondent on condition of anonymity, said, “I can assure you that we met all the necessary requirements; most of our funds were diverted into ensuring we met it before the deadline.”
Another source said, “The commission has been asking for evidence of recapitalisation even before the final date because it does not want the PFAs to revalue any assets as evidence of recapitalisation. They must present liquid cash or near cash assets.
“Many of them are in a last-minute rush but when the date ends, the commission will not accept any document again.
“Even those PFAs that looked as if they would not make it, they have been bringing evidence this week so you cannot rule out any company now until PenCom finishes screening their documents.”
The Pension Fund Operators Association of Nigeria had earlier said about 11 PFAs met the new capital requirement of the National Pension Commission as of the beginning of 2022.
In a circular last April, PenCOm directed PFAs to raise their shareholders’ funds from N1bn to N5bn, giving them a 12-month transition period.
The commission argued then that its oversight function had shown that the required minimum capital was no longer adequate to meet the operational expenses of the PFA business.
The new capital base of N5bn had led some PFAs to consider mergers and acquisitions as the April 2022 deadline approached.
Ahead of the recapitalisation, PenCom recently disclosed it approved the acquisition of Investment One Pension Managers Limited by Guaranty Trust Holding Company Limited and subsequent change of name from Investment One Pension Managers Limited to Guaranty Trust Pension Managers Limited.
It also approved the acquisition of AIICO Pension Managers Limited by FCMB Pensions Limited; and the merger between Tangerine Pensions Limited and APT Pension Funds Managers Limited and the subsequent change of name of the merged entity to Tangerine APT Pensions Limited. PenCom last week approved Norrenberger’s acquisition of IEI-Anchor Pension.
The naira appreciated to N1,600 per dollar in the parallel market at the close of trading hours on Monday, strengthening from N1,610 per dollar recorded over the weekend.
Similarly, the naira saw a slight gain in the Nigerian Foreign Exchange Market (NFEM), trading at N1,605 per dollar compared to N1,606 last Friday, according to data from the Central Bank of Nigeria (CBN). This represents a marginal N1 appreciation.
As a result, the gap between the parallel market and official exchange rate widened slightly to N5 per dollar, up from N4 over the weekend.
Central Bank of Nigeria (CBN) spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.
Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.
The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.
The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.
Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.
Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.
Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.
Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.
PalmPay, a full-service digital bank, has reaffirmed its dedication to advancing the future of payments in Nigeria by promoting the widespread adoption of contactless-enabled payment terminals.
This was made known during the recently concluded BusinessDay Future of Payment Conference, themed “Fintech Evolution: Gateway to Payments.” In his welcome address, BusinessDay Publisher, Frank Aigbogun, emphasized that the next phase of fintech innovation must be driven not only by speed, safety, and simplicity but also by trust, inclusion, and accessibility to ensure broad-based impact across all segments of society.
Talking about PalmPay’s impact in the panel session titled “The Next Wave of Digital Payments: Trends and Innovation,” Ifeanyi Uzoka, Senior Business Development Manager at PalmPay, discussed the evolving landscape of digital payments in Nigeria.
He noted that while regulatory frameworks have supported the introduction of contactless payments, the high level of cash dependency remains a key barrier to widespread adoption.
“At PalmPay, financial inclusion is central to everything we do,” Uzoka stated. “To support this mission, we’ve launched contactless-enabled debit and premium cards, ensuring our users have access to convenient and secure payment experiences. We also understand that trust is critical, which is why all contactless transactions on PalmPay’s platform include an additional layer of authentication for enhanced security.”
PalmPay continues to lead innovation in Nigeria’s digital finance ecosystem by delivering secure, user-friendly, and future-ready solutions. The company’s recently launched debit and premium cards in partnership with Verve are now serving its growing base of over 35 million users nationwide.
This move into contactless payments underscores PalmPay’s alignment with global payment trends and its ongoing commitment to building a more inclusive and digitally empowered economy.
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