FCMB Pensions, a subsidiary of FCMB Group Plc, say it is targeting N1.2trillion assets growth by the end of 2025 despite domestic and global economic uncertainties.
This was disclosed Christopher Bajowa Managing Director of the Pension Fund Administrator (PFA) on the sideline of its 20th Anniversary Dinner/Awards presentation held on Tuesday in Abuja.
FCMB Pensions presently boasts of over N1.1 trillion in Assets Under Management (AUM), with over N200 billion paid to retirees and other beneficiaries, showing resilience and making impact in the country.
The Managing Director, said the company is planning to be a major player in the industry, with focus on Personal Pension Plan (PPP) as next frontier of pension growth.
Christopher Bajowa who noted that inclusion has been a major challenge said there are ongoing efforts to grow the number of contributors which has been a bother to the regulator’s focus on PPP.
He also identified the Naira’s instability over the years as another challenge that has affected the industry.
“How do you encourage customers to save when the value of their savings is diminishing? There’s a lot of work in this area and even the Federal government is working on boosting the value of the Naira and also creating opportunities for us to access foreign currencies in order to hedge against devaluation if it continues to happen,” he said.
Pioneer Managing Director of the FCMB Pensions which started as Legacy Pension Managers Bello Maccido while speaking on the 20 years journey of the institution said the company started as a humble institution that was basically owned by retail individuals that came together to take advantage of the passage of the pension reform Act, 2004.
“At that point, 13 Pension Fund Administrators (PFAs) were licensed under the new defined contributory pension scheme.
“Within three years of operation, we were able to break even, and within five years, we were able to post two consecutive years of profitability.
“By the time I spent five years at Legacy pension, or FCMB Pensions, we were able to sign on 187,000 Retirement Savings Accounts (RSA) and an asset base of N72 billion.
“We had clients such as Division one of the Nigerian Army, CBN, NIPOST, and other individual RSA holders from across the length and breadth of this country.
“So, as I stand here today, 20 years after, I must say that I am very proud of the accomplishment of the successive management of Christopher Bajowa who has taken this company from where it was at inception and taking it to a one trillion Naira by assets under management.
“By any imagination, this is a feat that must be acknowledged. We are here to celebrate 20 years of competent management and 20 years of successes,” he said.
The 1st Division of the Nigerian Army, headquartered in Kaduna is one of the most strategically vital and active divisions, often described as a “military powerhouse” was pivotal to the growth of FCMB Pensions due to the number of enrollees it got and according to the PFA, the trust enhanced their acceptability.
Looking at the trajectory, a former Board Member of PFA Maheer Rasheed, in his submission said noted the sacrifices made and the challenges faced, were not in vain.
“20 years and N1 trillion under investment. When I left, we had about N148 billion but since then, to attain N1 trillion under management is not a small feat. It has to be done through conscious efforts of management and board which I must recognise.
“I really feel that Mr. Chris Bajowa has taken the flag and taken it this far. In fact I learnt that by the end of this December, we may reach N1. 2 trillion. So, this geometric growth which is as a result of foundational establishment and foundational infrastructure both in terms of governance and establishment and in terms of the trust which we have basically developed in the system.
“I’m happy that we have today, a PFA that is thriving very well in Nigeria and very successful. The way we’ve always done it is that we cannot stop; we have to strive; we have to run; we have to see that the growth is geometric.
‘The pension industry as of today has gone advanced and it has done a lot of funds to make investments in Nigeria. I think it was a worthwhile venture for the Act that established the Pension to be enacted and look at what we have today, without it, we’ll not have been here.”
On his part, James Ilori, Non -Executive Director of the FCMB Pensions, Representing the Board Chairman, FCMB Pension, Mr. Ladi Balogun, said “We’re delighted that FCMB Pension has come this far. The company has continued to grow. 20 years is a long time. We are delighted at the major progress the company has made.”
The night climaxed with awards for deserving stakeholders and staff who have remained steadfast since the start of the organisation.
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