With AUM at N3 trillion, Access ARM Pension Debuts, Promises Innovation, Expanded Informal Sector Coverage

James Emejo in Abuja

The newly formed Limited has officially launched operations, with a commitment to drive innovation and expand pension coverage into the country’s vast informal sector.

The National Pension Commission (PenCom), recently granted its approval for the merger between ARM Pension Managers (PFA) Limited and Access Pensions Limited to form the new entity.

The commission stated that the merger was expected to result in the achievement of economies of scale, improved operational efficiency of the new entity, as well as improved service delivery to Retirement Savings Account (RSA) holders.

The merger creates a formidable player in the industry with over N3 trillion in Assets Under Management (AUM), accounting for 15 per cent of industry’s total assets and over 20 per cent of customer base.

Speaking at the unveiling of the new company in Abuja, Managing Director, Access Pensions Limited, Mr. Dave Uduanu, emphasised the strength of the newly formed organisation with the support of Access Corporation.

Uduanu said the new entity was strongly capitalised with total shareholders’ funds exceeding N20 billion, and well above the minimum regulatory requirement.

He further outlined plans to collaborate with regulators, partners, and the parent company to leverage technology for expanding pension coverage into the vast informal sector through a well-crafted on-boarding strategy for micro-pensions.

Uduanu said over the past 19 years, the legacy companies had thrived through unwavering determination, growing sustainably, and earning the loyalty of their customers.

He said, “This is the biggest merger in the pension industry. Access and ARM were number two and four in the industry. Coming together to create a PFA with N3 trillion of Asset Under Management (AUM) with 15 per cent of industry total asset and more than 20 per cent of customer base. It is an opportunity to create a brand that we can all be proud of.”

Uduanu said the ceremony marked the dawn of a new era, with the unveiling of a formidable force in Nigerian pensions, bringing together two leading brands with histories dating back to 2004.

He said the pension industry had experienced tremendous growth since the advent of the Contributory Pension Scheme (CPS), with average annual growth of 15-20 per cent.

He said as of the end of July 2024, total pension assets stood at NGN20.9 trillion ($13 billion), serving over 10.4 million Nigerians.

Uduanu added that both entities had built significant brand equity with a track record of strong investment performance.

“We are coming together to deliver excellent pension solutions to our clients,” he stated.

Uduanu also reflected on the rationale behind the merger.

He said, “This union positions us uniquely in the evolving landscape of pension fund administration.

“Firstly, advances in medical science implies longer life expectancies compared to 20 years ago when Nigeria’s pension industry began.

“We face shifting regulatory landscapes, changing macroeconomic trends, and increasing demands for transparency and efficiency.

“Meeting these demands requires greater resources and pooled strengths to deliver improved customer satisfaction in retirement.”

He also said, “The merger of Access Pensions Limited and ARM Pension Managers Limited is more than just a business transaction; it is a strategic alignment of strengths, expertise, and resources.

“With combined assets under management of over N3 trillion and over 2 million Retirement Savings Account (RSA) holders, this business exemplifies what can be achieved when industry leaders unite with a shared vision.”

Acting Chairman, Access ARM Pensions Limited, Mr. Austin Opara, reaffirmed the board’s commitment to the new brand, adding, “We are dedicated to making it a strong and successful entity.”

Opara assured customers of reliability, growth, and commitment to service, saying, “For those who are not yet satisfied, we will work to earn your trust.”

He also reaffirmed the company’s commitment to stakeholders to grow their funds and assets as well as strengthen its culture of rewarding staff, and ensuring they were recognised for their contributions.

In his remarks, former Managing Director, ARM Pension Managers Limited, Mr. Wale Odutola, said the new entity was well-positioned to play a pivotal role in shaping the future of pension fund management in the country.

Odutola said, “We are thrilled to join forces with Access Pensions to create a stronger, more resilient organisation. Together, we will leverage our combined resources to drive innovation and excellence in pension fund management.”

The gathering observed a moment silence for the late Access Bank Group Chief Executive, Mr. Herbert Wigwe, whose vision created Access Pensions in December 2022, through the merger of Sigma Pensions and First Guarantee Pension, and the acquisition of ARM Pensions in January 2024.

Uduanu described Wigwe as a pioneer and trailblazer in the financial industry, who also provided a platform for innovation and leadership in retirement planning in the country.