The National Pension Commission (PenCom) has mandated Pension Fund Administrators (PFAs) to fully adopt digital platforms for contributor registration, onboarding and pension benefit payments from January 1, 2027, in a move aimed at transforming the administration of Nigeria’s Contributory Pension Scheme (CPS).
The commission, in a circular signed by A. M. Saleem, director, surveillance department, said the digitalisation drive would replace several manual processes with technology-driven solutions to improve efficiency, enhance transparency, strengthen data security and expand access to pension services.
PenCom said the reform was part of broader efforts to leverage technology and innovation to modernise the pension industry and align Nigeria’s pension administration with global digital practices.
Under the new directive, PFAs are required to establish and maintain secure digital platforms that allow Retirement Savings Account (RSA) holders, retirees, beneficiaries, employers and other stakeholders to access pension services electronically.
The platforms may include web portals, mobile applications, USSD services, customer self-service channels, digital retirement portals, electronic document management systems, virtual engagement platforms and other approved technology solutions.
According to PenCom, the digital channels must be secure, resilient and continuously available to support activities such as pension registration, account administration and processing of pension-related transactions.
The commission said the shift would help reduce paperwork and manual errors, improve access to pension services for Nigerians within the country and in the diaspora, ensure safer storage and retrieval of client data, strengthen fraud prevention and promote financial inclusion.
As part of the requirements, PFAs are expected to introduce robust identity verification and authentication systems for digital transactions.
These systems must validate users through approved identity credentials, including Personal Identification Numbers (PINs), National Identification Numbers (NINs) and other recognised verification methods.
PenCom also approved the use of additional security measures such as one-time passwords (OTPs), biometric verification, facial recognition technology, digital certificates and device authentication, depending on the risk level and complexity of transactions.
The commission said these controls would help protect pension transactions, prevent unauthorised access and minimise identity-related fraud.
For new contributors, PFAs must provide secure electronic channels for Retirement Savings Account registration while implementing measures to prevent duplicate registrations and identity fraud.
The digital framework will also cover pension benefit applications and payments, including retirement benefits, programmed withdrawal, retiree life annuity, temporary loss of employment withdrawals, residential mortgage equity contributions, death benefits and other benefits approved by PenCom.
The commission said the digital platforms should enable RSA holders and beneficiaries to submit applications and supporting documents electronically, complete verification processes, execute agreements digitally, receive notifications and track the progress of their applications.
PenCom further directed PFAs to comply with cybersecurity, data protection and privacy requirements under the Pension Industry Cybersecurity Framework while deploying digital pension services.
The circular also introduced stricter record management requirements, mandating PFAs to maintain tamper-evident audit trails for all digital transactions. The commission said executed documents must be protected using cryptographic hash technology to prevent unauthorised alterations.
Audit records must also capture transaction details, including IP addresses, timestamps, device identifiers and OTP logs associated with electronic signing activities.
The move comes as regulators and financial institutions increasingly adopt technology-driven solutions to improve access, transparency and efficiency across Nigeria’s financial services ecosystem.
