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The Pension Fund Operators Association of Nigeria (PenOp) recently convened a summit focused on providing an avenue for decision makers and executives in the pension industry to engage with various advisers to discuss strategies for raising additional capital and to analyze the outlook of the pension industry post recapitalisation.
The event which was attended by shareholders and executive management of a number of Pension Fund Administrators was sponsored by leading advisory firms in Nigeria, namely, Ernst and Young, FBNQuest Merchant Bank, Stanbic IBTC Capital, Detail Commercial Solicitors and Agusto & Co.
The backdrop for the event was the announcement in April 2021 by the National Pension Commission (PenCom) that all licensed pension fund administrators should increase their shareholders fund from the initial amount of N1 billion to N5 billion over a one-year period.
The session had professionals from leading investment banks and legal firms in Nigeria who dissected various strategies for raising capital. The issue of recapitalisation was addressed from different angles and the panelists also gave examples and pointers from various industry that had gone through this exercise before. Some of the questions on the minds of the operators pertaining to shareholder and regulatory considerations were answered by the firms on ground.
The session also comprised of a presentation by Augusto & Co that delved into the recent history of the pension industry, new areas of growth and the outlook for the pension industry post recapitalisation.
Overall, all the panelists were of the view that the Pension Fund Administrators should leverage the recapitalization exercise as an opportunity to restrategize and reposition their operations to compete better in a more recapitalized and competitive industry.
The goal for the association was to use the forum to answer some of the questions on the minds of its members and ensure they are well equipped for issues they may encounter as they work on different strategies towards meeting the recapitalisation requirement.
To conclude the session, the CEO of PenOp, Oguche Agudah said a well-capitalised industry will enable the sector to affect its various shareholders and the Nigerian economy in a positive way.