Premium Pension and Trustfund Pensions join to create Nigeria’s Third-Largest PFA

Premium Pension Limited and Trustfund Pensions Limited have formally proposed a merger that could create Nigeria’s third-largest Pension Fund Administrator, subject to the receipt of the required regulatory approvals. The proposed transaction was disclosed in a mandatory merger notification published by the Federal Competition and Consumer Protection Commission. Upon completion of the transaction, the combined business is expected to operate under a new name: Premium Trustfund Pensions Limited.

How the proposed merger will be implemented

Under the proposed arrangement, all the assets, liabilities and business undertakings of Premium Pension Limited will be transferred to Trustfund Pensions Limited. Premium Pension will subsequently be dissolved without being formally wound up, while the surviving company will continue operations under the name Premium Trustfund Pensions Limited.

The reference to Premium Pension being dissolved does not mean that contributors’ pension funds will be dissolved or lost. It describes the legal restructuring of the company after its business, obligations and operations have been transferred to the surviving entity.
The transaction remains a proposal and will only become effective after the necessary regulatory, corporate and legal approvals have been obtained.

Why are the two PFAs merging?

The proposed merger is expected to give the combined institution greater financial and operational scale. The companies believe that combining their operations will allow the enlarged PFA to reduce duplication, optimise operating costs, streamline internal processes and improve the delivery of services to contributors and retirees.

The expected benefits include stronger investment-management capabilities through the combination of the companies’ investment professionals, research resources, technology, operational infrastructure and industry experience.

The merged institution is also expected to benefit from the combined branch network and digital platforms of both organisations, potentially giving customers access to a wider service network and improved digital pension services.

PenCom’s New Capital Requirement May Have Encouraged the Merger

The proposed merger may also have been influenced by PenCom’s decision to significantly increase the minimum capital requirement for Pension Fund Administrators. Under the revised framework issued in September 2025, PFAs with assets under management below ₦500 billion are required to maintain at least ₦20 billion in qualifying shareholders’ funds, while PFAs managing ₦500 billion or more must maintain ₦20 billion plus 1% of the amount by which their assets under management exceed ₦500 billion. PenCom explained that the new requirements are intended to strengthen financial stability, operational resilience, service delivery and the long-term sustainability of pension operators. By combining their capital, assets, technology and operational resources, Premium Pension and Trustfund Pensions may be better positioned to meet the new regulatory threshold and manage the higher capital requirement associated with a larger asset base. The merger could therefore be viewed not only as a growth strategy, but also as part of the wider consolidation expected in the pension industry as PFAs respond to PenCom’s recapitalisation programme.

What the merger could mean for RSA holders

Contributors will notice administrative changes when the merger receives final approval.
These could include:

• A change in the PFA’s corporate name;
• New mobile applications or online portals;
• Changes to customer-service telephone numbers and email addresses;
• Consolidation of branches or service centres;
• New account statements or branding;
• Migration of customer records to a combined platform; and
• Changes to the way contributors receive notifications and access services.

What happens next?

The publication of the merger notification does not mean that the transaction has been completed. The proposal must pass through the relevant regulatory, corporate and legal processes before Premium Trustfund Pensions Limited can begin operating as the combined institution.

Until final approval and completion are formally announced, Premium Pension and Trustfund Pensions remain separate Pension Fund Administrators. RSA holders should continue to use their existing PFA channels, monitor their account statements, rely only on official communications and be well assured that their interest are protected by the National Pension Commission (PenCom).

Conclusion

The proposed merger between Premium Pension and Trustfund Pensions will create one of the largest Pension Fund Administrators in Nigeria. Premium Trustfund Pensions Limited is expected to rank as the country’s third-largest PFA, combining the customer base, investment expertise, branch network, technology and pension assets of two long-established operators.

Be the First to Know – Follow PensionNigeria WhatsApp Channel Its Free – Click here to follow our WhatsApp Channel

Support PensionNigeria

Support PensionNigeria financially with N1,000 per Month HERE, or with any amount ONCE (One Time Only) HERE
Empower us to do more independent analysis of the Pension Industry in Nigeria

Be the First to Know – Follow PensionNigeria WhatsApp Channel
Its Free – Click here to follow our WhatsApp Channel

Don’t Miss Anything Subscribe to PensionNigeria Newsletter on Substack

Once you Subscribe, we immediately send you an Email.
Please check your Inbox and SPAM folder.
If the Email is in your SPAM folder, kindly move it to your Inbox and add pensionnigeria@substack.com to your address book or contacts.
If you have subscribed before and you still do not receive our Newsletter,
please check your “Spam Folder”, if you find our Newsletter there, mark it as “NOT SPAM” or move it to your Inbox

Check here for Recent PensionNigeria Newsletter

Follow PensionNigeria on Social Media

Like our Facebook Page
Follow us on Twitter, Instagram & LinkedIn
Subscribe to our Channel on YouTube

Grow Your Personal Investment with Stanbic IBTC Asset Management

Pension is Your Right,
An Insurance for Old Age
Follow PensionNigeria on Social Media LinkedIn Twitter Instagram Facebook YouTube