Premium Pension, Trustfund Pensions Propose Merger to Become Nigeria’s Third-Largest PFA

July 8 () — Premium Pension Limited and Trustfund Pensions Limited have proposed a merger that would create Nigeria’s third-largest Pension Fund Administrator (PFA), subject to regulatory approvals.

The proposed transaction was disclosed in a merger notification published on Tuesday by the Federal Competition and Consumer Protection Commission (FCCPC), which said the combined entity will operate as Premium Trustfund Pensions Limited upon completion.

According to the FCCPC, the merger will be implemented through a Scheme of Merger under Section 711 of the Companies and Allied Matters Act (CAMA) 2020.

The commission noted that Premium Pension and Trustfund Pensions are currently the fifth and sixth largest PFAs in Nigeria, respectively, and the transaction is expected to elevate the merged company to the third position in the industry.

Under the arrangement, all assets, liabilities, and undertakings of Premium Pension will be transferred to Trustfund Pensions, after which Premium Pension will be dissolved without being wound up.

Both firms were licensed by the National Pension Commission (PenCom) in 2005 and currently manage Retirement Savings Account (RSA) Funds I to VI, including Micro Pension Funds for workers in the informal sector and non-interest Shari’ah-compliant funds.

They also administer Approved Existing Schemes, the Transitional Contributory Fund, and voluntary contributions across the country.

The companies said the merger is expected to deliver strategic, operational, and financial benefits by improving efficiency, reducing operating costs, and strengthening investment management capabilities.

They added that the enlarged institution would leverage its combined branch network and digital platforms to improve service delivery and broaden access to pension products across Nigeria.

The proposed merger comes amid increasing consolidation in the pension industry following PenCom’s revised capital requirements.

Last year, the regulator raised the minimum capital base for PFAs from N2 billion to N20 billion, encouraging operators to strengthen their financial position through mergers and acquisitions.

The transaction also follows recent industry deals, including Access Holdings’ merger of First Guarantee Pension and Sigma Pension, as well as Leadway Holdings’ acquisition of Pensions Alliance Limited, underscoring the sector’s ongoing drive towards scale, stronger capitalisation, and improved competitiveness.