ABUJA: Toba Owojaiye Reporting
In a significant development for Nigeria’s pension industry, the National Pension Commission (PenCom) has approved the merger between ARM Pension Managers Limited and Access Pensions Limited.
According to a statement released on Tuesday by PenCom’s management, this merger is anticipated to deliver enhanced operational efficiency and improved service delivery for Retirement Savings Account (RSA) holders.
Truth Live News gathered that PenCom highlighted that the merger would allow the newly formed entity to achieve economies of scale, streamline operations, and provide superior services to pensioners.
With this consolidation, the number of pension fund administrators (PFAs) in Nigeria is now reduced to 18.
This merger was set in motion by Access Pensions’ acquisition of an 81.82 percent majority stake in ARM Pension Managers, a subsidiary of ARM Traditional Asset Management Limited.
On January 24, the Federal Competition and Consumer Protection Commission (FCCPC) confirmed that the merger aimed to improve service offerings and boost the capabilities of both companies.
The FCCPC also explained that the merger would be carried out through the transfer of all assets, liabilities, and undertakings from ARM Pension to Access Pensions.
The combined entity will manage assets under management (AUM) worth over N2.22 trillion, marking it as a formidable player in Nigeria’s pension sector.
Pension administration in Nigeria has undergone significant evolution.
The pension system was largely unregulated until 2004 when the Pension Reform Act was introduced, establishing the Contributory Pension Scheme (CPS).
This reform was a watershed moment, as it replaced the Defined Benefit Scheme, which had suffered from poor funding and mismanagement.
The creation of PenCom as the regulatory body marked a turning point in ensuring compliance and fostering a sustainable pension system.
The market has since seen a consolidation of Pension Fund Administrators (PFAs), with mergers and acquisitions becoming more common to improve service delivery and boost industry growth.
The recent approval of the merger between ARM and Access Pensions reflects the continued maturity of Nigeria’s pension industry, as players seek ways to scale operations and increase efficiency in line with global standards.