The National Pension Commission (PenCom) has issued a new directive that is reshaping how Nigerian companies do business. The new rule requires companies to demand a Pension Clearance Certificate (PCC) from all vendors and service providers. This is part of a broader effort to ensure employers are properly contributing to their employees’ pension funds.
What You Need to Know
- The Directive: PenCom’s directive, issued in May 2025, gave Licensed Pension Fund Operators (LPFOs) a six-month deadline to enforce PCC compliance across their entire business network.
- The Law: This rule is based on the Pension Reform Act (PRA) 2014, which states that all employers must contribute to the Contributory Pension Scheme and remit payments within seven working days of paying salaries.
- Current Status: As of May 15, 2025, PenCom had issued 21,978 PCCs to employers across various sectors in Nigeria.
- Bigger Impact: Beyond vendor relationships, this directive now requires LPFOs to only invest in companies that also demand PCCs from their own vendors. This creates a ripple effect of compliance throughout the financial and corporate world.
PenCom says the move will help improve pension contributions and reduce the risk of non-compliance, particularly among private sector employers. It also formalizes the role of LPFOs in ensuring pension integrity across their business relationships.
