Access ARM Pensions Limited has initiated its operations with a significant milestone, boasting N3 trillion in Assets Under Management (AUM). This new entity emerged from the merger of Access Pensions Limited and ARM Pension Managers Limited, a development recently sanctioned by the National Pension Commission. The primary objective of this amalgamation is to bolster pension coverage across Nigeria, with a particular focus on the substantial and often overlooked informal sector. This strategic move positions Access ARM Pensions to play a pivotal role in Nigeria’s evolving pension industry, as it now holds a remarkable 15 percent share of the total assets within this sector, serving over two million Retirement Savings Account holders.
The launch event held in Abuja featured remarks from Dave Uduanu, the Managing Director of Access Pensions Limited, who underscored the historical significance of this merger within the pension industry. Uduanu pointed out that Access and ARM were previously ranked as the second and fourth largest players in the sector, respectively. Thus, their union not only creates a new powerhouse with formidable assets but also offers a unique opportunity to foster a brand that resonates with pride and reliability among stakeholders. Furthermore, Uduanu highlighted the company’s ambitious goals, particularly aiming to innovate the pension landscape by using technology to achieve wider reach and engagement, especially in the micro-pensions arena, targeting Nigerians who are not adequately represented in the current retirement savings framework.
One notable aspect of the merger is the substantial shareholders’ funds of over N20 billion, which far exceed regulatory requirements. This financial strength provides a solid foundation for the newly formed entity to grow and expand its services. Uduanu took note of the significant evolution within the pension industry since the launch of the Contributory Pension Scheme, which has resulted in impressive average annual growth rates between 15 and 20 percent. Such growth not only reflects the increasing importance of pension funds in financial planning for Nigerians but also highlights the potential for further expansion in a market that is still finding its footing in terms of coverage and innovation.
Austin Opara, the acting Chairman of Access ARM Pensions Limited, reaffirmed the commitment of the board to ensure the success of the new entity. He expressed a genuine desire to cultivate trust among stakeholders who may be apprehensive, emphasizing a dedication to building a robust and reliable brand. This dedication to transparency and reliability is vital for instilling confidence among existing and potential clients, particularly in an industry where trust plays a crucial role in encouraging participation and contributions to pension schemes.
Furthermore, the sentiment surrounding the merger was shared by Wale Odutola, the former Managing Director of ARM Pension Managers Limited, who expressed optimism regarding the future success of Access ARM Pensions. Odutola emphasized the importance of leveraging the combined strengths and resources of both predecessor organizations to drive innovation and enhance the quality of pension fund management in Nigeria. His remarks resonate with the overarching goal of the merger, which is not only to consolidate financial power but also to foster a culture of excellence that addresses the evolving needs and expectations of stakeholders in the pension landscape.
In conclusion, the establishment of Access ARM Pensions Limited represents a significant step forward for Nigeria’s pension industry, especially with its intentions to cater to the informal sector and extend pension coverage. With a formidable asset pool and a commitment to innovation, the newly merged entity is poised to make a meaningful impact on the financial security of millions of Nigerians. The leadership team’s focus on trust-building, technological advancement, and resource optimization underscores a clear vision for the future, one which aims to transform the landscape of retirement savings and address the needs of a diverse clientele across the nation. As Access ARM Pensions embarks on this journey, its success may set a precedent for similar initiatives aimed at strengthening the overall pension framework in Nigeria.
