Nigeria’s pension sector is entering a period of major restructuring, with Verod Capital’s divestment from Tangerine APT Pensions signaling how regulatory reforms are already reshaping the industry.
The Lagos-based private equity firm on Wednesday announced it is selling its stake in Tangerine APT Pensions to APT Securities and Funds Limited, a Nigerian financial services company. While financial terms remain undisclosed, the move is one of the first significant transactions since the National Pension Commission (PenCom) introduced its recapitalization directive.
Under the new rules, all Pension Fund Administrators (PFAs) managing under ₦500 billion in assets must increase their minimum share capital to ₦20 billion by December 2026. Tangerine APT, which currently oversees around ₦445 billion in Assets Under Management (AUM), falls within this category.
For Verod Capital, the exit follows a successful growth phase. The firm entered the sector in 2020, consolidating two pension companies — Axa Mansard Pensions and APT Pension Fund Managers — into Tangerine APT. Over four years, assets under management expanded 4.5x, from ₦100 billion to ₦445 billion, while governance structures were strengthened.
“Our thesis was simple: consolidate, optimise, and scale,” explained Daniel Adeoye, Partner at Verod Capital. “That strategy allowed Tangerine APT to become a stronger competitor in a rapidly evolving industry.”
The recapitalization policy, however, is set to transform the landscape further. Analysts note that smaller PFAs will either need to secure new investors, merge, or risk being edged out by larger rivals with deeper pockets.
By selling to APT Securities, Verod has not only exited profitably but also positioned Tangerine APT to align with the capital strengthening push that regulators believe is necessary to safeguard contributors’ pensions.
The deal underscores a pivotal moment for Nigeria’s pension sector: a shift from fragmented operators to larger, better-capitalized entities capable of delivering long-term stability.