- Website: www.sigmapensions.com
- Sector: Financial Services
- Country of operations: Nigeria
Providing pensions in Nigeria
Nigeria’s pension sector is starting to shed its reputation as a conservative corner of the country’s financial services industry – and at the heart of that shift is Sigma Pensions.
The company manages and administers pension funds for more than 650,000 members, in line with standards set out by the National Pension Commission (PenCom). PenCom is considering rule changes which could shake up the country’s pensions sector.
“There are numerous changes on the horizon,” explains Dave Uduanu, CEO of Sigma Pensions. “Current plans to introduce flexibility around the funds into which we segment our customers are a promising start.
“Getting more Nigerians into the formal pensions system remains a significant market opportunity”
CEO Dave Uduanu
Other changes we see coming are the opening of a ‘transfer window’, where customers will be able to move freely within operators once a year, and shared services which will lead to better service delivery and business consolidation.” Dave further believes that government support is required in providing laws and regulations that encourage both businesses and individuals to save for their retirement, and more generally in helping move the country’s economy out of its recent difficulties.
Whatever changes materialise, Dave sees huge potential for Sigma Pensions to keep growing its customer base. “Only seven million Nigerians have a pension, so getting more Nigerians into the formal pensions system remains a significant market opportunity,” he says. “Unlocking the informal sector with a micro-pensions product is another big opportunity, as most Nigerians are employed in the informal economy. We already have a plan on how to break into this sector.”
Sigma Pensions celebrated its tenth anniversary in 2015 and has 650,000 members
The company sees innovation as key to its growth plans, and its ability to develop new products and fresh ways of working was enhanced in November 2015 when investment firm Actis bought a majority stake in Sigma Pensions. This has also opened up the potential for further industry partnerships. Dave says: “Actis has brought significant market experience to the board and an investment strategy to grow the business.”
- 7m Nigerians have pensions, out of a total population of around 182 million