The National Pension Commission (“PENCOM”) on 28 January, 2019 issued a license to a new Pension Fund Administrator (PFA) accordingly increasing the number of PFAs currently operating in Nigeria. Consequent upon the compliance with PENCOM’s stipulated requirements, the license was issued to the Nigerian University Pension Management Company (“NUPEMCO”), a Pension Fund Administrator (PFA) set up to further improve the living standards of the Staff members of Nigerian Universities upon retirement.
Comparable to the Nigerian Police Force Pensions license that was issued in 2014 to manage the pension contributions of staffs of the Police Force, NUPEMCO when it accelerates into full operations is expected to cater for enrollees working in the various citadel of learning in Nigeria. The transfer of Pension Retirement Account (PRA) of members of the university from their current PFAs to NUPEMCO we anticipate would impact negatively on the balance sheets of the PFAs. This financial dearth would be exacerbated if enrollees in private universities are mandated to transfer their PRAs to NUPEMCO.
Considering the funds generated under the new regime of contributory pension scheme, stakeholders, we are convinced will continue to monitor the administration of pension in Nigeria and seek the necessary legal guidance.