IBTC Pension Leads Top Five PFAs in Control of Pension Market (2023)

Ebere Nwoji

The National Pension commission (PenCom) in its recent report on the overall performance of Pension Fund Administrators (PFAs) in terms of market share of contributors into the Contributory Pension Scheme from inception up to September 30, 2021, said that five high performing PFAs have continued to hold their lion share positions of the entire market with the Stanbic IBTC Pension Managers maintaining the lead.

According to the PenCom third quarter 2021 report, Stanbic IBTC Pension Fund Managers from inception to last quarter 2021, out of a total of 9,461,173 contributors into the scheme registered 1,912,891 contributors to control 20.2 per cent of the entire market.

Currently, there are 22 licensed PFAs operating in Nigeria.

ARM Pension fund Managers followed the lead registering 845,303 to control 8.2 percent market share.
Trust Fund Pension ranked third, registering 772,830 contributors to be in control of 8.2 percent share of the market.

Premium Pensions ranked fourth with 748,374contributors having 7.9 percent of the market share on its side. Sigma pensions ranked fifth registering743,522 contributors to be in control of 7.9 percent of the market.
According to the PenCom report, these top five ranking PFAs received 65.12 per cent of the total N13 trillion pension assets, which is the total pension fund generated by the entire 9,461,173 contributors into the scheme from inception of the scheme in 2004 to September 30th, 2021.

The bottom three PFAs namely Radix Pension Managers which registered 37,275 contributors to control 0.4 percent of the market, Tangerine Pension Ltd which registered 92,698 contributors to be in control of 1.0 percent of the market and Nigeria University Pension Managers Ltd with 24,275 contributors to control 3.4 percent of the market perhaps due to the peculiar nature of its market.

These accounted for 3.98 percent of the N13 trillion total pension assets.

The report further said that the aggregate pension contributions of the public sector increased from N3.65 trillion to N3.82 trillion as at the end of Q3 2021. Similarly, the aggregate pension contributions of the private sector also increased from N3.46 trillion to N3.56 trillion as at the end of Q3 2021.

Ranking the PFAs by the Amount of Contributions, the report said

The ranking of PFAs by cumulative pension contributions received from the inception of the CPS to the end of Q3 2021 indicated that the top five ranked PFAs received 65.12 percent of the total contributions as at the end of Q3 2021. Similarly, the top ten ranked PFAs accounted for 86.63 percent of the total contributions. In comparison, the bottom five and bottom ten PFAs accounted for 3.98 percent and 11.98 percent of the total pension contributions, respectively.

The report attributed the increase to an increased level of compliance by the public and private sectors.

It said the ranking of PFAs by the number of registered contributors as at the end of Q3 2021 showed a significant increase in the market share of the bottom three PFAs from 1.60 percent in Q2 2021 to 4.50 percent as at Q3 2021.
Similarly, the bottom five PFAs recorded a slight decrease in the number of registered RSAs from 4.20 percent in Q2 2021 to 4.10 percent in Q3 2021.

In the same vein, the report said the bottom ten PFAs also recorded a marginal decrease from 15.30 percent in Q2 2021 to 15.25 percent in Q3 2021.

Noting that there was a marginal increase in the market share of the top three at 37.32 percent in Q3 2021 which was 0.02 percent while the top 5 PFAs also experienced a marginal decline in market share of 53.09 percent in Q3 2021, vs the 53.10 percent recorded in Q2 of 2021.

It noted that the market share of the top ten PFAs marginally declined from 78.30 percent in Q2 2021 to 78.26 percent as at Q3 2021.

The PenCom report further said pension contributions remitted to individual RSAs in Q3 2021 stood at N272.15 billion.

According to the report, out of this total, the public sector accounted for N170.96 billion or 62.82 percent while the private sector contributed N101.19 billion or 37.18 percent.

It added that the cumulative pension contributions from inception to the end of the third quarter of 2021 amounted to N7.37 trillion, which is an increase from N7.10 trillion as at the end of Q2 2021.

Meanwhile, the commission has said that a total of 12,877 RSAs holders initiated RSA transfers at the end of third (Q3) 2021, which was concluded in the first week of October 2021. The commission noted that out of the total RSA Transfers initiated, 12,872 RSAs were transferred to their new PFAs along with their associated pension assets, while 5 RSAs were outstanding due to non-upload of the transaction history of their RSAs.

The total value of the pension assets in respect of the 12,872 RSAs transferred was N45, 5millon