The National Pension Commission has moved the pension industry recapitalisation deadline to June 2027, extending it from December 2026.

This was disclosed by the Director-General of PenCom, Ms Omolola Oloworaran, during the 2025 PenCom Media Conference on Thursday in Lagos, as she dismissed speculations that the recapitalisation exercise had been suspended.

The PUNCH in September reported that licensed pension fund operators had 15 months to meet the revised minimum capital requirement issued by PenCom. In the circular announcing the new MCR, PenCom said, “The timeline for compliance with the revised capital requirements for both licensed PFAs and PFCs shall be 31 December 2026.”

However, with this extension, operators have an extra six months to meet the MCR.

Under the new directive, three categories were created. Category A consists of PFAs with Assets Under Management of N500bn and above, who are expected to have a minimum capital of N20bn + one per cent of AUM above N500bn. Category B comprises PFAs with AUM below N500bn, who must raise their capital base to N20bn. Those in Category C are special-purpose PFAs such as NPF Pensions Limited, whose minimum capital was pegged at N30bn, and the Nigerian University Pension Management Company Limited, whose minimum capital was fixed at N20bn.

Speaking at the media conference themed ‘Pension Revolution Summit: A 365 Days Scorecard’, Oloworaran said, “Recapitalisation has not been suspended. We have communicated the requirements to the PFAs, and we expect every operator to be compliant by June 2027. Anyone who is not compliant by then will lose their licence.”

According to her, engagements with industry operators indicated broad acceptance of the policy, with many PFAs already taking steps to raise additional capital or explore mergers and acquisitions. She said, “You may see some mergers and acquisitions in the industry, but what is clear is that the recapitalisation exercise is on track and the industry agrees with us.”

The DG also noted that improving employer compliance with pension remittances remained a major focus for the commission and has led it to sign a Memorandum of Understanding with the Independent Corrupt Practices and Other Related Offences Commission, and it was collaborating with labour unions to enforce compliance.

“From a regulatory standpoint, our major challenge is ensuring compliance. We are working with ICPC, labour and the TUC to ensure employers remit pension contributions for their employees,” she said.

The DG noted that the commission’s enforcement measures were already yielding results, with recoveries from defaulting employers increasing significantly.

Oloworaran also announced the launch of the pilot of the Pension Industry Healthcare Initiative in March 2026. The phase is set to target about 30,000 of the lowest-earning retirees across the country. The PenCom indicated that the initiative was designed to ease the healthcare burden of low-income retirees and ensure that retirement years were lived with dignity.

According to her, PenCom had inaugurated the Board of Trustees of PenCare to drive the industry-wide intervention, which would provide free and accessible healthcare services to eligible retirees.

“Retirement should be a season of peace, not a period defined by anxiety over medical bills. I am happy to announce that the pilot will be launched in March next year, and we hope to enrol about 30,000 retirees across the six geopolitical zones of the country,” she said.

The PenCom boss described PenCare as a landmark reform that underscored the government’s commitment to improving the welfare of pensioners, particularly those with limited income. She said the programme aligned with the Federal Government’s Renewed Hope Agenda.

“We are building a pension system that protects not just income but also the well-being of those who have given their productive years to the nation,” she said.

The Acting Managing Director/Chief Executive Officer of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, in her comments at the event, also noted that the launch of PENCARE and the initiatives set a strong foundation for the new year.

She said, “Initiatives such as PENCARE, the embedding of ongoing special projects, and the inauguration of the Pension Industry Leadership Council set a strong tone for the year ahead. These are not isolated efforts but the beginning of a broader set of benefits the pension industry will deliver in the new year and beyond.

“We firmly believe that the pension industry is a cornerstone of the Nigerian economy and of Nigeria’s future. It mobilises long-term capital, supports financial markets, underpins infrastructure financing, and most importantly, provides dignity and security in retirement. This is a role we are deeply passionate about.

“Looking ahead, our focus will be clear: deeper engagement, deeper education, deeper sensitisation, deeper collaboration, and deeper partnerships. We remain committed to staying transparent, building and deepening trust, and consistently delivering benefits that justify the confidence Nigerians place in the pension system.”

The acting Director of the Compliance and Enforcement Department, PenCom, Ahmed Lawan, disclosed that the PENCARE initiative is being funded by both the regulator and the licensed Pension Fund Operators, with no deductions made from the contributions.

He said, “PENCARE is a CRS initiative between pension fund operators and the Commission. The Commission is setting aside a certain percentage of its fee, while pension operators are required to set aside a percentage of their profit after tax to ensure that this initiative is funded.

“The vision of PENCARE is to safeguard the element of financial security and dignity of all CPS retirees through accessible health care. Our mission is to build a sustainable, pension industry-driven health insurance system based on corporate social responsibility. Nobody has given us anything to do this. It is simply a partnership within the pension industry. The strategic goal is to protect retirees from health-induced poverty, reinforce social responsibility, and build public trust.”