Economy
PenCom Gives PFAs One Year to Raise Capital Base to N5bn
By Aduragbemi Omiyale
Pension Fund Administrators (PFAs) operating in the country have been mandated to increase their Minimum Regulatory Capital (shareholders’ fund) requirements to N5 billion from N1 billion.
This directive was given by the National Pension Commission (PenCom), the agency approved by the government to regulate the pension industry.
The operators have one year to meet up or have their operational licences withdrawn.
A circular from the agency said the PFAs have till April 2022 to recapitalise.
PenCom explained that this exercise became necessary as a result of the 244 per cent growth in the value of pension assets under management and custody from N3 trillion in 2012 to N12.3 trillion in 2020.
The agency said when this is put into consideration and also the increase in the total number of contributors to 9.33 million, PFAs must shore up their capital base to accommodate the exponential growth.
In the circular, PenCom said it would monitor the exercise, noting that it would have to approve any option a PFA chooses to meet up with the new requirements.
“The National Pension Commission (PenCom) recently increased the Minimum Regulatory Capital (shareholders’ fund) requirements of Pension Fund Administrators (PFAs) from N1 billion to N5 billion.
The PFAs were granted a 12-month transition period, effective April 27, 2021, within which they were to meet the Minimum Regulatory Capital.
“PenCom stated that the upward review of the Minimum Regulatory Capital from N1 billion to N5 billion for PFAs became expedient as the value of pension assets under management and custody had grown exponentially by 244 per cent; from N3 trillion in 2012 (when the previous recapitalisation was done) to N12.29 trillion (as at December 31, 2020).
“Furthermore, PenCom stated that sustained growth in assets implies greater fiduciary responsibilities that require more operational capacity by the PFAs. In addition, the total number of contributors had increased to 9.33 million as at December 31, 2020.
“As a result of the growth in pension assets and contributions, increased capital injection into the PFAs became necessary in order to maintain service standards, improve the capacity of PFAs in terms of operational efficiency and effectiveness and increase growth potentials of the pension industry.
“Furthermore, an increase in the shareholders’ fund will enable PFAs to employ and retain skilled staff and ensure the adequacy of resources to fund operational requirements (e.g ICT infrastructure, branch office expansion) and activities.
“Meanwhile, PenCom is monitoring the process closely and aware that pension operators are evaluating the various options open to them to attain the new Minimum Regulatory Capital.
“Whichever option a PFA chooses will be subjected to the commission’s approval process. It is, however, important to note that Pension Fund Custodians (PFCs) are not affected by the recapitalisation exercise. The PFCs are wholly owned by big licensed financial institutions and are adequately capitalised,” the circular read.
Economy
BNB Price Reflects Changing Dynamics in the Digital Asset Market
Economy
NASD Unlisted Security Index Crosses 4,000-point Benchmark Again
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.
Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.
The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.
The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.
However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.
During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.
At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.
GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.
Economy
Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns
By Adedapo Adesanya
It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.
In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.
Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.
Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.
Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.
Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.
The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.
A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).
Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.
However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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