PenCom Approves Merger of ARM and Access Pensions
By Patience Ikpeme
The National Pension Commission (PenCom) has approved the merger of ARM Pension Managers (PFA) Limited and Access Pensions Limited, a move poised to significantly reshape Nigeria’s pension landscape.
This development was disclosed in a press statement issued by the regulator on Tuesday in Abuja.
According to the statement, the newly merged entity will operate under the name Access ARM Pensions Limited, combining the strengths of both pension fund administrators (PFAs) to enhance operational efficiency and service delivery for Retirement Savings Account (RSA) holders.
“This is to inform the general public that the National Pension Commission (PenCom) has granted approval for the merger between ARM Pension Managers (PFA) Limited and Access Pensions Limited to form a new entity named Access ARM Pensions Limited,” the statement reads.
The merger is expected to create a leading player in Nigeria’s pension industry, with total assets under management exceeding N2.22 trillion. This significant consolidation will place Access ARM Pensions Limited among the top pension fund administrators in the country in terms of asset size and market reach.
The merger also follows several earlier consolidations in Nigeria’s pension industry. Notably, Access Pensions had previously acquired Sigma Pensions, as well as a majority stake in First Guarantee Pensions. These acquisitions solidified Access Pensions’ position in the pension sector, giving it a competitive advantage before the most recent merger with ARM Pension Managers.
PenCom highlighted that the merger aims to deliver enhanced service for RSA holders of both entities. “The creation of Access ARM Pensions Limited will drive improved service delivery, innovation, and efficiency,” PenCom noted. This move is part of broader industry efforts to streamline operations and offer superior services to pension contributors across the country.
The synergy between the two merging companies is expected to result in economies of scale, ultimately benefiting contributors and retirees by reducing operational costs and expanding service coverage.
The Nigerian pension industry has experienced increased consolidation in recent years, as PFAs look to boost operational capacity, service delivery, and financial strength. The merger of ARM Pension Managers and Access Pensions represents another step in that direction, ensuring stronger financial health for pension administrators and broader access to pension services for Nigerians.
With this merger, the total number of pension fund administrators in Nigeria has now reduced to 18, as consolidation continues to reshape the market. PenCom has continually supported such mergers, viewing them as crucial to fostering a more robust pension system that can effectively manage the savings and investments of millions of Nigerians.
Industry analysts suggest that the merger of ARM Pension Managers and Access Pensions will further enhance competition within the pension industry, pushing other PFAs to explore new strategies to retain market share and improve service delivery. As the industry consolidates, the ultimate beneficiaries are expected to be RSA holders, who should experience improved account management, increased financial security, and access to more diversified investment options.
The newly formed Access ARM Pensions Limited will be expected to leverage its combined resources to innovate and expand its pension management offerings while also ensuring that its contributors enjoy long-term benefits from better-managed funds.
As Access ARM Pensions Limited begins operations, all eyes will be on how the merger impacts the broader pension industry in Nigeria. With over N2.22 trillion in assets under management, the new entity is set to play a leading role in the sector’s future development.
By driving improved efficiency and service standards, Access ARM Pensions Limited is poised to set a benchmark for other pension fund administrators to follow, further transforming Nigeria’s evolving pension landscape.
The merger also represents a significant milestone for both ARM Pension Managers and Access Pensions, as they join forces to serve millions of RSA holders and contribute to the overall growth of Nigeria’s financial services sector.
