{"id":8211,"date":"2026-08-05T13:25:33","date_gmt":"2026-08-05T13:25:33","guid":{"rendered":"https:\/\/stakebridgeirpr.com\/media\/?p=8211"},"modified":"2026-08-05T13:25:33","modified_gmt":"2026-08-05T13:25:33","slug":"pencom-rsa-reform-boosts-nigerian-equities-capital-market-growth","status":"publish","type":"post","link":"https:\/\/stakebridgeirpr.com\/media\/pencom-rsa-reform-boosts-nigerian-equities-capital-market-growth\/","title":{"rendered":"PenCom RSA Reform Boosts Nigerian Equities, Capital Market Growth"},"content":{"rendered":"

By Ayo Susan<\/strong><\/p>\n

The Group Chief Executive Officer of United Capital Plc, Mr. Peter Ashade, recently said at the firm’s maiden Investor Relations Roundtable in Lagos that the revised National Pension Commission (PenCom) Retirement Savings Account (RSA) investment guidelines could channel more than N2 trillion into the Nigerian equities market. He said the higher equity allocation limits for Retirement Savings Account Funds I, II, III and VI-Active would increase pension fund participation, improve market liquidity and provide long-term funding for listed companies. Ashade linked the opportunity to broader capital market reforms and presented United Capital’s H1 2026 financial performance, which showed gross earnings of N37.49 billion, profit before tax of N24.78 billion and profit after tax of N21.10 billion.<\/p>\n

DECISION HIGHLIGHT<\/strong><\/p>\n

The PenCom’s revised investment framework shifts pension policy from capital preservation alone towards deeper domestic capital formation by expanding institutional participation in Nigerian equities.<\/p>\n

DECISION MEMO<\/strong><\/p>\n

The reform’s significance lies less in the revised allocation limits than in its potential to reshape the structure of Nigeria’s capital market. With pension assets approaching N30 trillion, modest changes in equity allocation create substantial capacity for long-term institutional investment, reducing reliance on short-term capital and improving market depth.<\/p>\n

Ashade said: “The revised RSA Fund investment guidelines present a major opportunity for deeper capital market participation by pension fund administrators, potentially improving liquidity and providing long-term funding support for listed companies.”<\/p>\n

The revised framework also aligns with complementary reforms, including the T+1 settlement cycle, banking recapitalisation and foreign exchange liberalisation. Together, these measures strengthen the infrastructure for institutional investing while positioning the Nigerian Exchange for greater liquidity and more efficient price discovery.<\/p>\n

For United Capital, the policy creates commercial opportunities across asset management, securities trading, investment banking and digital wealth management, supported by strong earnings momentum across its businesses.<\/p>\n

DATA BOX<\/strong><\/p>\n