Nigeria: N1 Billion Recapitalisation – IGI Faults PenCom

Lagos — The management of IGI Pension Fund Managers Limited has debunked claims by the Pension Commission (PFA) that it failed to meet the N1 billion recapitalisation policy by the commission.

Pencom said Monday that as at June 30, a month after the deadline for all PFAs to shore up their capital base from N150 million to N1 billion, Citi Trust Pension Managers Limited and IGI Pension Fund Managers Limited failed to meet the minimum capital requirement.

The commission gave 28 days notice of its intention to revoke their operating licences pursuant to the provisions of Section 54 of the Pension Reform Act (PRA) 2004.

But IGI PFA in a swift reaction debunked Pencom claims.

In a statement in Lagos yesterday by the IGI management, it expressed dismay about the impression created that it failed to meet the minimum capital requirement of N1 billion set for licensed PFAs.

Describing the claims as unfair, embarrassing and misleading, the company explained that it actually recapitalised as required by PenCom by pooling together cash and assets which amounted to more than the specified N1 billion.

The Deputy Managing Director, Mr. Rotimi Fashola, said: “It is unfair and erroneous to make the public believe that IGI PFA failed to meet the recapitalisation requirement when, in fact, the company capitalised up to N1.5 billion, in cash plus property. This amount is N500 million above the mark set by PenCom.

“For the avoidance of doubt, let me state categorically without any fear of contradiction that it is outright falsehood that our PFA licence has been revoked. Our licence is intact and we remain a leading player in the industry.”

Fashola noted, however, that the commission raised some administrative issues relating to growing concerns which the company is expected to address within 28 days.

According to him: “It is true that PenCom has sought clarifications from us on some matters, but the process of recertification is ongoing and every grey area will be resolved before the 28-day deadline given by PenCom in accordance with the law.

“We are making representation to the commission and we are of strong conviction that it will reconsider its position after listening to us.”

The management assured their customers of the company’s commitment to serving their interests at all times, in line with IGI’s corporate values of integrity, dependability and responsiveness.

When contacted, the Head of Surveillance Department of PenCom, Mohammed Datti Yola, said the commission stands by its findings. He said IGI recapitalized with properties worth N1.3 billion and “we told them that recapitalizing with property is not acceptable.”

“You have to recapitalize with cash which they did not have. You cannot recapitalize with property,” he said.

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