Pension funds are funds contributed by employer and employees to be actively managed by a pension fund administrator. The objective is to generate stable growth over the long term, and provide income for employees when they reach the end of their working years.
In 2005, following the enactment of the Pension Reform Act (PRA 2004) Pensions Alliance Limited (PAL) was established. PAL, which is currently one of the leading pension fund administrators in Nigeria, is a joint venture between FSDH Merchant Bank (FSDH) and African Alliance Insurance Company Limited (African Alliance). The company was set up in line with the guidelines of the Nigerian Pension Commission (PENCOM) to manage and administer pension funds in Nigeria.