The National Pension Commission (PenCom) and Pension Operators Association of Nigeria (PenOp) have promised to use technology to drive the growth of pension assets to N22 trillion in the first quarter of 2025. As at October 2024, the value of pension assets was N21.9 trillion.
The Director-General PenCom, Omolola Bridget Oloworaran, who stated this at a one-day media retreat organised by the commission in Lagos said the commission was particularly passionate about the Micro pension initiative adding that it would use technology to grow the segment.
"It is our way of saying that no one should be left behind, no matter how small their earnings might be. Technology plays a vital role in driving this inclusion, from mobile enrollment to real-time account management to benefits administration. We intend to use technology to scale the micro-pension plan," she stated.
According to her, this year, the pension sector achieved a major milestone with the launch of the e-Application Portal for Pension Clearance Certificates (PCC).
She said the initiative replaced the previous manual process as it enables companies to seamlessly apply for and receive PCCs online.
"Since its deployment, we have issued over 38,000 PCCs, significantly enhancing ease of doing business and ensuring compliance. Additionally, the pension industry shared service initiative is in advanced stages of implementation. This initiative will digitise pension contributions and remittances, ensuring seamless processing of contributions and resolving discrepancies caused by incomplete remittance details," she said.
The PenCom boss said to further enhance contributors' experiences, the commission has introduced a revised programme withdrawal template, simplifying access to voluntary contributions and revising the threshold for en-bloc payments in line with the new minimum wage.
"These measures are designed to make retirement processes more efficient and user-centric.But beyond policies and systems, what really excites me is the potential to transform lives. Every time I meet a pensioner who is able to live comfortably because of the contributions they made during their working years, it reminds me of why this work is so important. And every time I hear from a young entrepreneur or artisan who has signed up for the micro-pension scheme, it strengthens my belief that we are moving in the right direction," she stated.
She said the commission wants to rebrand the micro-pension initiative and gives it a new name, adding that the objective was to remodel it to encompass the large number of the target audience in the informal sector.
She added, "We are looking at a target of 20 million contributors from the informal sector. We are also looking at technology to drive the process seamlessly."
According to her inclusion of state government into the scheme is another target of the commission adding that a total of eight states have so far complied fully with the provisions of the CPS.
She said the Commission was engaging with the remaining states across the federation on the issue.
Meanwhile, the commission in collaboration with PenOp has engaged four PSSPs providers to facilitate pension remittances and ensure all platforms meet industry specifications.
The PSSPs includes PayPen by Netline Limited; Paythru by Pethahiah by Rehoboth International Ltd; Pension Central by Chams and Cyberpay by Cyberspace Ltd.
The Chief Executive Officer PenOp, Mr Oguche Agudah, said his office was working on a technology system whereby it can engaging some firms tagged the Pension Service Solution Providers to ensure that everyone who was paying pension from April 1, 2025 has to go through this model.
Explaining the process, he said, "what will happen is that when the employer pays pension, it goes straight to the RSA holder. There are going to be four of them that we have engaged now. With these, there is going to be a standardised remittance template."
He added that there would also be validation checks to eliminate instances of, "we got money, but don't know where it's coming from.
"We are also going to do awareness between now and April 1 so that employers will know that from April 1, they can just go to the bank and send their pension. The result is that RSA holders will get their pension without delay."
On the benefits of engaging the providers he said it briûngs, "more transparent remittance process, allows for better tracking and reporting, which can enhance trust among stakeholders, including employees, employers, and regulatory bodies.
"A well-functioning pension system contributes to economic stability by mobilising long-term savings for investment in various sectors. Timely pension remittances enhance this effect by ensuring that funds are available for investment purposes."
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On the rights of the RSA holders regarding the new solution, he said they have rights to timely remittance of contribution by employers; to choose a PFA, retirement; earn penalties on late remittances; use RSA balance for specific purposes and understand retirement options.
He urged employers to ensure timely remittance of deducted contributions
to the Pension Fund Custodian within seven working days from the date employees are paid their salaries.
According to him failure to do so is illegal and attracts penalties, including a minimum fine of 2% on unpaid contributions for each month of default.
He noted that employers who comply with pension remittance requirements can receive Clearance Certificates from PenCom, which are essential for eligibility in government contracts and other business opportunities.
He charged employers to provide life insurance coverage for their employees, ensuring additional financial security in case of unforeseen events.
