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Verod Capital, a Lagos-based private equity firm focused on West Africa, has announced it is divesting its stake in Tangerine APT Pensions, one of Nigeria’s pension fund administrators (PFA).

The private equity investor will sell its shares to APT Securities and Funds Limited, a Nigerian firm specialising in financial advisory, asset management, and securities trading. The financial terms of the transaction were not disclosed.

Verod initially entered the sector in 2020 through its funds, acquiring 100% of Axa Mansard Pensions Limited and 45% of APT Pension Fund Managers Limited. The two entities were subsequently merged in 2021 to create Tangerine APT Pensions Limited.

Verod said it has significantly strengthened governance and accelerated the growth of Tangerine APT Pensions, positioning it as a major player in Nigeria's pension industry.

“We entered this market with a clear thesis: consolidate, optimise and scale. The numbers are compelling - AUM grew from N100 billion to N445 billion, a 4.5x increase under our stewardship,” said Daniel Adeoye, a Partner at Verod Capital. “Our partnership with Tangerine APT's management team focused on operational excellence and strategic positioning in Nigeria's pension fund administration space.”

Verod’s exit comes as the National Pension Commission (PenCom) mandates a compulsory recapitalisation for the Nigerian pension industry. PFAs and custodians must raise their minimum share capital by December 2026. Companies managing less than N500 billion in assets, such as Tangerine APT Pensions, must increase their share capital to a minimum of N20 billion naira within the next 15 months.

This measure aims to reinforce the sector's stability and ensure the security of contributors’ deposits. The transaction between Verod and APT Securities marks one of the first strategic restructurings in Nigeria’s pension sector since the regulatory reform was announced.