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The National Pension Commission (PENCOM) commenced the issuance of Pension Clearance Certificates (PCC) to organizations in 2012. The PCC is evidence of compliance with the PRA 2014 and a prerequisite for all suppliers, contractors, or consultants, soliciting any contract or business from Federal Government Ministries, Departments, and Agencies (MDAs). Therefore, PENCOM issues PCCs to organizations that apply and have fully complied with the set requirements. PENCOM, the National Pension Commission, plays a crucial role in Nigeria’s pension industry. Here are its main roles and advantages:

  1. Regulation and Supervision: PENCOM regulates and supervises the administration of pension matters in Nigeria. This includes overseeing the operations of pension funds administrators, custodians, and other players in the pension industry. This regulatory function ensures compliance with pension laws and safeguards the interests of pension contributors.
  2. Policy Formulation: PENCOM formulates policies and guidelines aimed at improving the pension system in Nigeria. These policies cover various aspects such as pension contributions, retirement age, investment guidelines for pension funds, and pension benefits administration.
  3. Pension Fund Management: PENCOM is responsible for the management of pension funds in Nigeria. It helps to secure the retirement benefits of pension contributors by generating returns on their contributions.
  4. Pension Coverage Expansion: PENCOM works towards expanding pension coverage in Nigeria by encouraging more employers to enroll their employees in the Contributory Pension Scheme (CPS). This scheme provides a structured and sustainable framework for retirement savings, ensuring financial security for retirees.
  5. Protection of Pension Assets: PENCOM plays a key role in safeguarding pension assets. It sets stringent standards for pension fund administrators and custodians to ensure the security and integrity of pension assets. This helps to mitigate the risk of mismanagement, fraud, or misappropriation of pension funds.
  6. Financial Inclusion: By promoting pension participation among workers, PENCOM contributes to financial inclusion by encouraging savings and investment in the formal sector. This helps individuals plan for their retirement and reduces their reliance on informal social security mechanisms.

Advantages of PENCOM:

  • Retirement Security: PENCOM’s regulatory oversight and management of pension funds contribute to the security of retirement benefits for pension contributors. This assurance helps individuals plan for their post-retirement life with confidence.
  • Investment Opportunities: Through the prudent management of pension funds, PENCOM creates investment opportunities that generate returns for pension contributors. These investments can stimulate economic growth and development in various sectors of the economy.
  • Institutional Framework: PENCOM provides a robust institutional framework for pension administration in Nigeria. This framework enhances transparency, accountability, and efficiency in the pension system, thereby fostering trust among stakeholders.
  • Social Stability: A well-functioning pension system managed by PENCOM promotes social stability by reducing poverty among the elderly population and providing a safe economy for Nigeria.


The Pension Reform Act, 2014 (PRA 2014) makes it mandatory for all organizations with at least three employees to participate under the Contributory Pension Scheme (CPS). Compliance with the PRA 2014 by employers includes the following:

  • Ensuring all employees open a Retirement Savings Account (RSA) with any Pension Fund Administrator (PFA) of their choice.
  • Remitting employer and employee monthly pension contributions to the appropriate Pension Fund Custodian (PFC), no later than seven working days from the date of payment of salaries.
  • Transferring Pension Funds and Assets in their custody prior to the commencement of the CPS to licensed pension operators.
  • Provision of Group Life Insurance Policy (GLI) for their staff.



A company wishing to obtain the PCC can do that by forwarding an application to PENCOM and attaching the following:

  • A certified list of employees of the organization as at the end of the last fiscal year;
  • Certified rates of monthly contributions indicating the employer portion (minimum of 10 percent) and employee portion (minimum 8 percent) and;
  • Evidence of remittance of pension contributions for the last three fiscal years, for organizations that were in existence for that period, and, from the date of incorporation/registration/licensing to the last fiscal year, for organizations that have not been in existence for that period. In addition, the organization must also attach evidence of transfer of pension fund and assets for any pre-2004 retirement benefits scheme into the employees’ RSAs, where applicable; evidence of remittance of all outstanding pension contributions and penalties, where applicable; and evidence of valid Group Life Insurance Policy, which should include Certificate of Group Life Insurance, Policy Document and evidence of payment.

Applications for the PCC can be submitted at either the Commission’s Head office in Abuja or any of the Commission’s Zonal Offices.

Processing of Certificates

The processing of certificates is carried out at the Commission’s Head Office. In processing the applications for the PCC, the Commission is guided by one of the primary objectives of the PRA 2014, which is to ensure that every person who works in either the public or private sector receives his benefits as and when due. Under the CPS, benefits can only be received as and when due where the employer remits its employees’ pension contributions as appropriate.


For more enquiry on roles and how to process PENCOM Certificate, kindly contact us at SOW Professional Services Ltd.


Phone: 07038254989

WhatsApp: 08152451523