The National Pension Commission (PenCom) has officially announced its approval for the merger of ARM Pension Managers Limited and Access Pensions Limited, a significant development in Nigeria’s pension sector.
This consolidation, which was confirmed in a statement issued on Tuesday, has resulted in the creation of a new entity called Access ARM Pensions Limited. With this merger, the total number of pension fund administrators (PFAs) operating in Nigeria has now reached 18.
The primary objective of this merger is to establish a stronger and more competitive entity within the Nigerian pension industry. By merging, the newly formed Access ARM Pensions Limited aims to enhance service delivery, ensuring that pension contributors receive better value from their investments.
PenCom emphasized that the merger is designed to capitalize on economies of scale, ultimately leading to improved operational efficiency for the new organization. As a result, holders of Retirement Savings Accounts (RSAs) can look forward to receiving enhanced services and benefits as part of this new structure.
PenCom elaborated on this development, stating, “This is to inform the general public that the National Pension Commission has approved the merger between ARM Pension Managers Limited and Access Pensions Limited to form a new entity named Access ARM Pensions Limited.
“The merger is expected to result in the achievement of economies of scale, improved operational efficiency of the new entity as well as improved service delivery to Retirement Savings Account Holders. With the merger, this brings the total number of PFAs to 18.”
In addition to this important merger, it has been reported by various sources that the pension fund assets under the Contributory Pension Scheme in Nigeria have seen remarkable growth.
As of July 2024, the total assets have risen to an impressive N20.79 trillion, according to information disclosed by the Acting Director-General of PenCom, Omolola Oloworaran.
This increase highlights the ongoing development and significance of the pension sector in Nigeria, underscoring the government’s commitment to ensuring that citizens have access to robust retirement savings options.
