Published On: Thu, Nov 26th, 2015

Global investor buys major stake in Nigeria’s Sigma

nest 3LAGOS, (CAJ News) – ACTIS, a global pan-emerging markets investor, has acquired a majority stake in Sigma Pensions in a transaction valued at US$62 million.

Sigma is a leading pension fund administrator (PFA) in Nigeria.

Natalie Kolbe, Partner at Actis, said building on their extensive experience in the asset management and distribution sector, they were excited to be investing behind a growing consumer demand for future financial protection and well-being in Nigeria.

“In Sigma, we have identified a well-managed, solid business with ‘best in industry’ back office, IT and operational systems and excellent customer service that can leverage these underlying secular trends,” she said.

Tony Abakisi, Investment Principal from Actis’ Lagos office, said Sigma sat in an under-penetrated, well-regulated market and had excellent growth prospects.

The pensions industry in Nigeria remains significantly underpenetrated, with pension assets constituting only about 5 percent of gross domestic product.

“We are excited to be investing in the Nigerian PFA industry and to be partnering with Mr Modibbo and a great management team to support growth initiatives, including extending the core business, enhancing the brand, and creating a platform for further expansion within Nigeria,” said Abakisi.

Umaru Modibbo, is founder and Chief Executive Officer of Sigma Pensions.

He was delighted to welcome Actis as a new partner.

“They understand our business and bring deep asset management and distribution expertise, as well as an unrivalled track record in Africa. With Actis’ help, we look forward to continuing our growth trajectory and creating more opportunities,” said Modibbo.

Founded in 2004 and headquartered in Abuja, Sigma was one of Nigeria’s first PFAs and now has over 650 000 registered customers. Working from 11 offices and 32 service centres, it administers and invests funds on behalf of its customer base which spans the entire country.

Actis is one of the biggest financial services investors in Africa with over $570m invested in the space; over $1 billion invested in financial services globally and some $3 billion invested across African businesses overall.

CAJ News

Featured Video