PenCom approves Interswitch, Awabah, 7 others as pension payment providers 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.

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:

Employers can now choose any of these providers to handle their pension remittance processes, ensuring faster and more efficient transactions.

The Pension Fund Operators Association of Nigeria (PenOp) had previously announced plans to introduce four pension service solution providers starting from April 1, 2025.

“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.

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.

This directive is expected to enhance efficiency in pension administration, giving RSA holders quicker access to their funds while reducing administrative delays.