The National Pension Commission (PenCom) has approved nine Payment Solution Service Providers (PSSPs), including Interswitch, Awabah, and Pencentral, to facilitate pension contribution remittances in Nigeria.
This move is part of the commission’s transition to an online Pension Contribution Remittance System (PCRS), replacing manual pension remittance processes.
According to an update on PenCom’s website, the newly introduced PCRS will allow employers to upload their employees’ pension schedules and make payments online.
PenCom emphasized that the service is free and comes at no cost to employers. The new system is designed to enhance transparency, efficiency, and accountability in pension administration.
Approved payment providers
To make it easier for businesses to fulfill their pension obligations while ensuring employees’ contributions are accurately allocated, the commission has authorized nine PSSPs under the new system:
- Paypen by Netline Limited
- Pencentral by Chamsaccess Limited
- Pensphere (formerly Paythru) by Pethahiah Rehoboth Int’l Limited
- Penremit by Cyberspace Limited
- Pensol by Uniswitch Technology Limited
- Penco by Gemspay Solutions Limited
- Awabah by Awabah Remit Services Limited
- Epcoss by Nigeria Inter-bank Settlement Systems Plc
- Interswitch by Interswitch Group
Employers can now choose any of these providers to handle their pension remittance processes, ensuring faster and more efficient transactions.
Acceleration of digital pension services
The Pension Fund Operators Association of Nigeria (PenOp) had previously announced plans to introduce four pension service solution providers starting from April 1, 2025.
- However, PenCom’s latest announcement has expedited the process, allowing employers to start using the system immediately and expanding the number of available service providers.
- PenOp CEO Oguche Agudah highlighted the importance of the new digital system in resolving common pension remittance issues, such as uncredited retirement savings accounts and undocumented payments received by pension fund operators at the 2024 PenCom Media Conference in Lagos.
“With this system, employers’ pension payments will go straight to the RSA holders. The standardized remittance template and validation checks will eliminate issues of ‘money received without a corresponding schedule,’ ensuring transparency and efficiency,” Agudah stated.
What you should know
PenCom earlier this month issued a new directive allowing Pension Fund Administrators (PFAs) to approve and process several retirement benefits without prior approval from the commission. Effective June 1, 2025, this change is intended to streamline pension payments and reduce bureaucratic delays in Nigeria’s Contributory Pension Scheme.
- Previously, PFAs had to obtain PenCom’s “No Objection” before disbursing funds, but they can now process benefits such as programmed withdrawals, retiree life annuities, and refunds for those exempted from the CPS. PFAs must process and approve payment instructions within two working days of completing documentation, and appointed Pension Fund Custodians (PFCs) are required to credit beneficiaries’ accounts within 24 hours.
- However, applications for depleted RSAs and death benefits will still require PenCom’s approval. To support this transition, PenCom has amended key regulatory instruments, including the Revised Regulation on the Administration of Retirement and Terminal Benefits, the Guidelines on Voluntary Contributions, and the Framework on Pension Enhancement for Retirees.
This directive is expected to enhance efficiency in pension administration, giving RSA holders quicker access to their funds while reducing administrative delays.
