Are you tired of hearing stories about delayed pension payments or uncredited retirement savings? You are not alone. Nigeria’s pension industry has evolved, with those becoming a thing of the past.
This is following a technological transformation embarked on by the National Pension Commission (PenCom), in partnership with the Pension Fund Operators Association of Nigeria (PenOp), towards making remittances efficient and easier for employers.
This has led to a number of positive changes, including ensuring that pension remittance processes are easy for all parties involved.
Starting from June 1, 2025, all employers were mandated to remit pension contributions through nine approved Payment Solution Service Providers (PSSPs). All other remittance channels were blocked to ensure standardised and seamless pension processing.
This move marks a significant milestone in Nigeria’s journey towards a transparent, tech-enabled, and accountable pension ecosystem.
Previously, employers manually processed contribution schedules, remitted funds through bank transfers, and sometimes sent incomplete or inaccurate data to Pension Fund Administrators (PFAs). The result was delays in crediting Retirement Savings Accounts (RSAs), and strenuous reconciliation exercises.
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Under the new system, PSSPs act as digital gatekeepers. Each platform is directly integrated with PenCom’s database, enabling real-time validation of employee details, such as RSA Personal Identification Numbers (PINs) and assigned PFAs, before payments are made. This ensures that contributions are credited to the right account at the right time.
Benefits of the new remittance system
The introduction of PSSPs provides a multitude of benefits to stakeholders in the pension value chain:
•Accuracy: Real-time RSA PIN validation reduces errors in remittances.
•Efficiency: Employers can upload schedules, make payments, and receive instant confirmation on a single dashboard.
•Transparency: Automated reports allow employers, PFAs, and regulators to track contributions in real time.
•Compliance: With standardised reporting formats and digital records, compliance monitoring becomes easier and more enforceable.
•Security: All platforms use encrypted payment gateways and follow strict data protection protocols.
A hypothetical case: From stress to seamlessness
Consider a mid-sized company in Abuja with 150 employees. Previously, the HR team spent days generating contribution schedules, sending emails to PFAs, and chasing receipts. When PIN errors occurred, it took weeks to resolve.
Since adopting one of the approved Payment Solution Service Providers (PSSPs), the process has become seamless. The platform automatically generates and validates schedules, and the finance team can track payments and generate receipts within minutes. Complaints have dropped to zero, and the HR team now focuses on strategic planning rather than reconciliations.
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The nine approved PSSP URLS
The approved platforms include PayPen by Netline Ltd (paypen.ng), PayThru by Pethahiah Rehoboth International Ltd (pensphere.ng), Pension Central by Chams (pensioncentral.ng), CyberPay by Cyberspace Ltd (penremit.ng), Awabah Remit Services Nigeria Limited (penpay.com.ng), Gemspay Solutions Limited (https://pencco.ng), Uniswitch Technology Limited (www.payyourpensions.com), Interswitch (https://www.pensionremit.ng), and Nigeria Inter-Bank Settlement System (NIBSS) https://epccos.nibss-plc.com.ng/EPCCOS.
Employers are encouraged to begin onboarding immediately to avoid last-minute hiccups. Training and onboarding support are being provided by the PSSPs and PFAs to ease the transition.
An employer said, “Since switching to one of the approved PSSP platforms, our reconciliation time has reduced dramatically, it has taken a huge load off our finance team.”
According to a contributor, the benefits are already visible. “I now receive SMS alerts almost immediately after my pension is credited,”. It gives me peace of mind knowing my future is secure.
PenCom said the initiative is part of a broader effort to ‘future-proof” Nigeria’s pension system and align it with global best practices.
“The introduction of PSSPs is more than a technical upgrade; it’s a strategic shift towards accountability, compliance, and user-centred service delivery. We’re empowering employers and safeguarding contributors’ futures,” a PenCom spokesperson stated.”
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The road ahead
With the full adoption of the PSSP system, contributors will benefit from quicker crediting of their accounts, easier tracking of their pension balances, and improved confidence in the system. PFAs, in turn, can focus more on investment strategy and client service, rather than spending hours chasing incomplete schedules.
There are already talks of future innovations, like mobile app integration, contributor dashboards, instant alerts, and even an AI-based fraud detection system.
As PenCom and PenOp continue to modernise the pension space, Nigeria’s pension future is digital, transparent, and contributor-focused.
Now that the June 1, 2025, deadline has started, it is crucial for all employers, public and private, to take proactive steps. Register with a PSSP, train the payroll team, and embrace the digital shift.
While it is not just a regulatory requirement, it is a chance to automate pension remittances and put the contributors at the heart of Nigeria’s pension system.
