For Nigerian workers preparing for retirement, the choice of a pension fund administrator (PFA) has to be very well thought out as it is an important step towards financial security in old age, so this top 10 best pension companies in Nigeria will serve as a guide in making that decision of choosing a PFA.
The pension structure in Nigeria has witnessed further development, and expansion since 2004, after the Pension Reform Act where several Pension companies were established.
Among them, these companies are responsible for managing Retirement Savings Accounts (RSAs) according to the requirements of the National Pension Commission (PENCOM).
However, this article seeks to rank the top 10 best pension companies in Nigeria.
Also read: 10 Proven Surest Ways to Make Money Online in 2024
Understanding Pension Funds & Pension Fund Administrators (PFA) in Nigeria
Pension fund administrators, or PFAs, are organizations that handle the pensions of workers or pensioners under their control in Nigeria.
It is their main aim to make sure that theirs members have enough savings when they retire and no longer working.
It is stated that Pension funds must be privately managed as well as managed only by licensed Pension Fund Administrators (PFA) if the Contributory Pension Scheme is to be adhered to.
The main focuses of the Pension Fund Administration (PFA) are the opening of Retirement Savings Accounts (RSA) for employees, the management of pension funds in the collection and distribution of retirement benefits as well as every activity that relates to the management of pension funds
Top 10 Best Pension Companies (PFAs) in Nigeria 2024
A large number of financial companies in Nigeria have come up with pension fund schemes to satisfy the increasing need, especially of the retirees and the workers who are gearing up for retirement.
PFAs functions are very crucial in ensuring that the individuals who are working now will be financially stable in the future.
The following are the top 10 best pension companies in Nigeria (PenCom Approved PFAs)
#1. AXA Mansard Pension Limited
AXA Mansard Pension Limited used to be one of the largest pension fund administrators (PFA) in Nigeria. It was a member of AXA Mansard Group, which is a leading non-banking financial institution in Nigeria.
The company had several pension products which included,
- Retirement Savings Accounts (RSAs): These accounts were designed to help employees save for their retirement.
- Pension Fund Administration: AXA Mansard Pension Limited managed pension funds on behalf of its clients, ensuring that their contributions were invested wisely.
- Pension Fund Management: The Company also managed pension funds, investing them in various assets to generate returns for its clients.
Key points
- Reputable Brand: As a member of the AXA Mansard Group, it was able to gain a market presence and international recognition.
- Full Range of Services Provided: It catered to various clients’ expectations by providing various pension services.
- Business Integrity: The organization acted in accordance with the rules and regulations of the National Pension Commission (‘PenCom’), Nigeria.
#2. Stanbic IBTC Pension Managers
Stanbic IBTC Pension Managers is among the largest pension managers in Nigeria with managed assets exceeding 4 trillion naira.
Stanbic IBTC Pension Managers do also pay out over N4.87 billion to over 72,337 retirees monthly.
The Stanbic IBTC Retirement Savings Account (RSA) and the Stanbic IBTC Voluntary Contribution (VC) scheme, among others, are some of the pension products and services the company offers.
It features good customer support and a good return on investment.
Highlights:
- A commendable support structure of finances and trustworthiness.
- Excellent online and mobile platform for account management.
- Provides a range of investment tools according to the needs of its clients.
- Almost always rated among the leading pension fund managers concerning assets under management as well as the returns assured.
Incorporated as a subsidiary of Stanbic IBTC Holdings PLC which is a member of the Standard Bank group, Stanbic IBTC Pension Managers Limited is a leading pension company in Nigeria.
#3. Leadway Pensure PFA
Leadway Pensure PFA is a subsidiary of Leadway Assurance, which is a premier insurance company in Nigeria. It uses the knowledge and skills possessed by its parent company, in the area of insurance and financial services, in order to render adequate pension fund management services.
Key points:
- Opportunities for many investment options.
- Communicates to the clients concerning the status of the funds on a regular basis for accountability.
- Has a convenient means of administering pension accounts.
Leader Pensure PFA is one other highly regarded in the eyes of its customers with its philosophy that centers more on the enhancement and protection of pension fund deposits.
Prospective clients do not have to scour too far for an experienced and trustworthy administrator for their pension funds.
#4. ARM Pension Managers (PFA) Ltd
ARM Pension Managers is yet another giant operating in Nigerian’s pension industry that is well-reputed for efficient management of overall finances and providing a high quality of service to its client.
Together with Asset & Resource Management Holding Company ARM Pension Managers has over 20 years of experience in investment management.
Highlights:
- Provides a convenient mobile application to access pension accounts.
- Investment options through portfolio management are quite upscale and creative.
- Has a significant customer appeal corroborating its credibility and reliability.
Long-term retirement savings services provided by ARM Pension Managers help clients sustain a certain level of standard of living in retirement.
The strong competitive edge they enjoy in the market makes them such a prospect.
#5. Fidelity Pension Managers
One of the best PFA, Fidelity Pension Managers is concerned with the welfare of its clients in terms of their financial well-being, this is due to the fact the company is an arm of Fidelity Bank PLC which is amongst the prominent banks in Nigeria.
Highlights:
- Caters to various investment preferences of the client as per the risk desire level.
- Has excellent client relations as well as performance reports for the fund from time to time.
- The subsidiary of Fidelity Bank guarantees the security and sustainability of the investments.
Fidelity Pension Managers remain the first preferred pension managers in Nigeria due to the balanced handling of its funds in the sense that both the safety and the growth of the pension funds are well handled.
#6. AIICO Pension Managers
AIICO Pension Managers Limited is at the forefront of pension fund management in Nigeria due to the fact that the company is a subsidiary of AIICO Insurance Plc, which is one of the reputable insurance establishments in the country where AIICO Pension Managers is anchored on a solid base and history of trust.
Some of the critical aspects that have led to the growth of AIICO Pension Managers include:
- Good Returns on Investments: The Company has maintained a high performance in financial operations which guarantees the safety and growth of the clients’ pension funds.
- Management Board: As an organization that is licensed to operate in the pension industry, AIICO Pension Managers has employed some experienced staff versed in the pension business as well as its legal requirements.
- Product Development: The company is also engaged in introducing new pension plans and other products so that the customers’ needs can be satisfied fully at all times.
- Service Quality: In enhancing service delivery, AIICO Pension Managers embraces, pulverizes its clients through myriad of options; the impression that the company gives to the clients in the very first place.
AIICO Pension Managers is responsible for managing assets worth more than ₦700 billion that are now under management. In addition to the AIICO Pension RSA and the AIICO Pension VC plan, the company maintains a strong growth trajectory in 2024, recording N12Billion Profit.
#7. Oak Pension
Oak Pension Limited is one of the leading pension fund administrators in Nigeria, with impressive skills in business approach management.
The organization seeks to enhance the economic well-being of all stakeholders by providing pension management services that are effective, safe, and affordable.
Oak Pension has in place a retirement savings account where a percentage of your salary goes into this account every month for as long as you are working.
It also offers a voluntary contribution scheme that allows you to add more money into your account which is not necessarily for retirement only.
With Oak Pension, the client moves with his or her Retirement Savings Account (RSA) from one Pension Fund Administrator (PFA) to another as he or she likes.
#8. Veritas Glanvills Pensions Limited
VGP Pension Limited, in the past also called FUG Pensions Limited, is regulated by the National Pension Commission to operate pension funds in Nigeria.
It is committed to the highest standards in the management of pension fund assets and the protection of pension assets of each and every client.
Clients are also given the option to have Retirement Savings Accounts (RSA), Additional Voluntary Contributions, and Retirement Planning services, among others.
Such services are offered to corporate bodies as well as to employees of institutions.
Given its substantial experience, the company VGP Pension has qualified professionals that competently handle the planning and provision of pension management services, management support, and development of strategic retirement schemes to meet the diverse future needs of the clients.
#9. NLPC Pension Fund Administrator Limited
NLPC Pension Fund Administrator Limited is one of the major pension service providers in Nigeria. The organization is mainly responsible for the provision of the administrative solutions of premium pensions in an efficient and speedy manner.
Further, NLPC also has a Voluntary Contribution Plan which is easy to follow and effective for the clients, and a Retirement Savings Account (RSA) where clients are permitted to save part of their monthly earnings towards Retirement contributions.
Lastly, the company is also responsible for the investment of pensions for Retiree Life Annuity which pays subscriptions to retirees who are life annuitants.
NLPC offers so many types of pensions that one hundred percent of the clients of NLPC will always find the most appropriate plan that meets their needs and their level of expectations.
#10. Sigma Pensions
Sigma Pensions (‘Sigma’) is a prominent Nigerian Pension Fund Administrator (‘PFA’). Sigma, one of Nigeria’s first PFAs, was established in 2004 and is headquartered in Abuja.
It has a subscriber base of over 650,000. It manages and invests funds on behalf of its extensive customer base, which operates from 11 offices and 32 service centers throughout the nation.
In November 2015, Actis partnered with Sigma’s founder and Chief Executive Officer, Mr. Umaru Modibbo, to invest $62 million in a majority stake in Sigma. Actis’ investment in Sigma establishes a foundation for further expansion into Nigeria, capitalizing on the increasing consumer demand for financial protection and well-being in the country.
Actis has the potential to contribute substantial value to Sigma, a market-leading brand that is well-positioned to scale in a high-growth, under-penetrated market.
Which Is The Best Performing PFA In Nigeria?
It is important to examine and compare many parameters like returns on investments, customers’ assessment of services offered, availability of finances, and other parameters to identify the best and the most efficient Pension Fund Administrator PFA from the top 10 best pension companies in Nigeria listed above.
There are several ways of measuring performance. This includes
- Return on Investment (ROI): How well the PFA has invested its clients’ funds.
- Risk Management: The PFA’s ability to manage risks associated with investments.
- Customer Service: The quality of service provided to clients.
- Regulatory Compliance: Adherence to the regulations set by the National Pension Commission (PenCom).
Therefore, the following PFAs are often mentioned among the best in Nigeria as of 2024:
- APT Pension Funds Managers Limited
- AIICO Pension Managers Limited
- ARM Pension Managers Limited
- AXA Mansard Pensions Limited
- Crusader Sterling Pension Limited
PENSION FUND ADMINISTRATORS PERFORMANCE RECORD
To get the PenCom full list of performance data and rankings of PFAs. Download it HERE
Conclusion
The Nigerian pension sector is made up of various pension fund administrators who have their unique strengths and features. Out of the top 10 best pension companies in Nigeria listed above, the top 10 pension companies please customers through their superior performance, products, and services across the financial architecture.
Choosing a pension administrator requires consideration of specific details such as the administrator’s financial viability, investment packages, support systems, and technology used.
Upon choosing a genuine and trustworthy pension company, one will improve the management of his or her retirement funds and thus help him or her achieve his or her life and financial aspirations.