Leadway Holdings fully acquires  PAL Pensions in renewed battle for market share

Leadway Holdings has acquired Pension Alliance Limited (PAL Pensions), securing full ownership of the company. The merger will place the combined entity among Nigeria’s top three pension fund administrators by assets under management.

PAL recently marked its 20th anniversary and crossed ₦1 trillion in assets under management. Its managing director, Sa’adu Jijji, said the transition would safeguard customers and employees. Segun Odusanya, group managing director of FSDH, one of PAL’s former owners, said the sale aligned with FSDH’s strategy to streamline its portfolio while securing growth for PAL under new ownership.

Tunde Hassan-Odukale, group managing director of Leadway, described the acquisition as part of a broader push to build scale and trust in the pension system. He added that the combined business will target efficiency, innovation, and stronger retirement solutions for millions of Nigerians.

Financial details of the transaction were not disclosed, though the acquisition follows a recent divestment linked to Leadway interests, including a ₦70.8 billion off-market share sale in First HoldCo. The merger is still subject to approval from the National Pension Commission.

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The merger is still subject to regulatory approval by the National Pension Commission. Customers will also need clarity on how their accounts will be managed and if any fees or services will change.

A growing pension market

Nigeria’s pension industry has continued to grow, with total assets under management reaching ₦20.5 trillion by the end of 2024, according to data from the National Pension Commission (PenCom). Leadway Assurance reported ₦173.2 billion in insurance revenue for 2024, a 51% cent increase year-on-year, while paying out ₦117 billion in claims according to its audited financials. 

The industry is also seeing consolidation at scale: Access Holdings acquired ARM Pensions for ₦152 billion in 2024, creating Access ARM Pensions, which went on to post ₦28.2 billion in revenue, ₦3.5 trillion in assets, and a 187% jump in profit by the end of 2024. The Leadway-PAL merger now gives Leadway a springboard to deliver similar growth.