FBN Holdings Plc says its subsidiary, First Pension Custodian Limited, has entered into an agreement to purchase Access Bank Plc’s entire share capital in Access Pension Fund Custodian Limited.
Pension Fund Custodians (PFCs) are responsible for keeping safe custody of pension assets in trust on behalf of contributors.
In a statement issued on Wednesday, FBN Holdings said the finalisation of the deal is subject to regulatory approvals.
“The Central Bank of Nigeria and the National Pension Commission have given their “no objection to the Transaction, with completion subject to the receipt of all required regulatory approvals,” the statement reads.
“FBNH will update the market as appropriate and in accordance with its disclosure obligations.”
The main functions of PFCs are to receive pension contributions on behalf of pension fund administrators(PFAs); settle transactions and undertake activities relating to the administration of pension fund investments on behalf of PFAs.
It is also obliged to notify the PFA within 24 hours of the receipt of pension contributions from employers.
The planned acquisition is expected to shrink the number of PFCs in the country to three companies.
They include Zenith Pensions Custodian Limited, UBA Pensions Custodian Limited and First Pension Custodian Limited.