The deal, if approved, would create Nigeria’s third-largest pension fund administrator ahead of a June 2027 capital deadline that carries licence revocation for non-compliance.
Premium Pension and Trustfund Pensions have proposed a merger to meet the recapitalisation requirement set by the National Pension Commission (PenCom) ahead of the June 2027 deadline, a move that would create Nigeria’s third-largest pension fund administrator.
The Federal Competition and Consumer Protection Commission (FCCPC) announced the planned consolidation in a merger publication dated July 7, saying the combined entity would operate as Premium Trustfund Pensions Limited upon completion of the transaction.
Merger to be implemented under CAMA 2020
The FCCPC said the merger would be implemented through a scheme of merger under Section 711 of the Companies and Allied Matters Act (CAMA) 2020, subject to regulatory approvals.
Under the arrangement, all assets, liabilities and undertakings of Premium Pension would be transferred to Trustfund Pensions, after which Premium Pension would be dissolved without being wound up.
Premium Pension and Trustfund Pensions are currently the fifth and sixth largest PFAs respectively. Both firms were licensed by PenCom in December 2005 and currently manage retirement savings account (RSA) Funds I to VI, including the micro pension fund, non-interest Sharia-compliant funds, approved existing schemes, the transitional contributory fund and voluntary contributions.
The proposed merger comes as PFAs move to comply with PenCom’s revised capital requirements introduced in September 2025, which raised the minimum capital base from N2 billion to N20 billion by June 2027. Operators with assets under management above N500 billion must also maintain additional capital equivalent to one percent of the excess assets.
PenCom Director-General Omolola Oloworaran had previously made the consequences of non-compliance clear at the 2025 Pension Revolution Summit in Lagos.
“We have communicated the requirements to PFAs, and we expect every PFA to be compliant by June 2027. Any PFA that is not compliant will have its licence revoked. It’s that simple,” she said.
Merger to improve efficiency and expand coverage
The companies said the proposed merger would improve operational efficiency, reduce costs and strengthen investment management capabilities. The enlarged institution would leverage its combined branch network and digital platforms to improve service delivery, diversify pension products and expand coverage across Nigeria’s formal and informal workforce.
The proposed merger between Premium Pension and Trustfund Pensions follows a pattern of consolidation already underway in Nigeria’s pension industry. In October 2024, PenCom approved the merger between ARM Pension Managers (PFA) Limited and Access Pensions Limited to form Access ARM Pensions Limited a transaction that signalled the direction of travel for the sector ahead of the June 2027 deadline.
With the minimum capital threshold now set at N20 billion, ten times the previous requirement smaller and mid-sized PFAs face a stark choice between raising fresh capital, finding a merger partner or risking licence revocation.
The Premium Pension and Trustfund Pensions transaction suggests more consolidation is likely before the deadline arrives.
