PenCom opens pension funds to bank holding companies
PenCom has permitted pension fund administrators to invest in parent companies of pension custodians under strict governance conditions, providing a temporary 24-month window to address the mismatch between rapidly growing pension assets and limited investable domestic securities. Transactions require multi-level approval through investment committees, risk management units and compliance departments before board sign-off. PFAs must maintain conflict registers, ensure recusal of affiliated officials and disclose holdings quarterly. Coronation Research noted that well-governed bank HoldCos with strong balance sheets stand to benefit most, while weaker institutions may struggle to meet the scrutiny required to attract pension capital.
Pension industry consolidation accelerates
Nigeria’s pension industry is experiencing increased merger activity as PFAs consolidate to meet regulatory capital requirements and manage assets now exceeding N31tn. The proposed merger between Premium Pension Limited and Trustfund Pensions Limited is the latest in a series of transactions, following Access Holdings’ combination of Sigma Pensions, First Guarantee Pension and ARM Pensions into Access ARM Pensions, and Leadway Holdings’ acquisition of PAL Pensions. PenCom’s recapitalisation framework requires PFAs managing under N500bn to maintain minimum capital of N20bn, with industry estimates suggesting operators may need to raise up to N275bn collectively to remain competitive.
PenCom threatens PFA sanctions over slow RSA data recapture
PenCom has warned of regulatory sanctions against underperforming PFAs after only 17.03% of legacy RSA holders completed mandatory data recapture in Q1 2026. Of an estimated 8,722,609 legacy accounts, only 1,485,052 had been recaptured cumulatively, with 58,220 completed during the quarter. At the current pace, completing all outstanding accounts would take over 25 quarters. PenCom announced it would introduce PFA-level quarterly targets, publish progress reports and impose sanctions on material underperformers, signalling a shift from a PFA-driven to a Commission-led recapture process throughout 2026.
Nigeria's public debt hits N159.27tn
Nigeria’s total public debt rose 10.1% by N14.6tn to N159.27tn in 2025, according to Debt Management Office data. Domestic debt accounts for N84.84tn while external debt stands at N74.42tn, with sub-national domestic debt rising to N4.36tn. The increase comes amid persistent revenue shortfalls and mounting infrastructure, security and social programme expenditure pressures. Finance Minister Taiwo Oyedele has clarified that much of the apparent debt increase reflects naira revaluation of foreign currency obligations and the securitisation of pre-existing Ways and Means advances rather than entirely new borrowing by the current administration.
CBN reopens OMO to local investors
The CBN reversed its 2019 restriction on local investor participation in Open Market Operations, allowing individuals, corporates and non-bank financial institutions to participate through Deposit Money Banks in both primary and secondary OMO markets. The circular also removed Discount Window restrictions linked to NFEM participation, significantly broadening access to Nigeria’s short-term securities market. Analysts warn the policy could intensify competition for funds between fixed-income instruments and Nigerian equities, as OMO securities currently offer yields significantly above comparable Treasury bills, potentially drawing domestic capital away from the stock market toward higher-yielding government instruments.