PenCom approves Nine digital platforms for pension payments in Nigeria
Joy Agwunobi
The National Pension Commission (PenCom) has launched an innovative online Pension Contribution Remittance System (PCRS), replacing the manual pension remittance process for employers across Nigeria.
As part of this transition, PenCom has approved nine Payment Solution Service Providers (PSSPs), including Interswitch, Awabah, and Pencentral, to facilitate seamless pension contributions.
According to an update on its website, PenCom stated that the digital remittance system aims to enhance efficiency, accuracy, and transparency in pension contributions. The approved service providers include:Paypen (Netline Limited), Pencentral (Chamsaccess Limited), Pensphere (formerly Paythru, by Pethahiah Rehoboth Int’l Limited) Penremit (Cyberspace Limited), Pensol (Uniswitch Technology Limited), Penco (Gemspay Solutions Limited), Awabah (Awabah Remit Services Limited), Epcoss (Nigeria Inter-bank Settlement Systems Plc) and Interswitch (Interswitch Group)
Under the new system, employers can now upload employee schedules and make pension payments online from their offices or homes, eliminating the paperwork and delays associated with manual remittances. The platform, according to PenCom, is provided at no cost to employers.
“The PCRS ensures that pension remittance schedules uploaded by employers are accurate, and employees’ personal identification numbers (PINs) and pension fund administrators (PFAs) are verified with PenCom before remittances are processed,” the commission stated.
Employers can choose any of the approved service providers to facilitate their pension remittances, ensuring flexibility and a competitive service landscape.
The introduction of the PCRS marks a shift in Nigeria’s pension administration. Previously, the Pension Fund Operators Association of Nigeria (PenOp) had announced plans to introduce four pension service providers starting from April 1, 2025. However, PenCom has expedited the process, approving a wider range of providers and allowing immediate adoption of the digital system.
Speaking at the 2024 PenCom Media Conference in Lagos, Oguche Agudah, CEO of PenOp, emphasised the role of technology in solving long-standing pension remittance challenges. He noted that issues such as uncredited retirement savings accounts (RSAs) and undocumented payments would be eliminated with the new system.
“With this system, employers’ pension payments will go straight to RSA holders. The standardised remittance template and validation checks will eliminate issues of ‘money received without a corresponding schedule,’ ensuring transparency and efficiency,” Agudah stated.