The directive, contained in a circular signed by A. M. Saleem, Director, Surveillance Department, to all licensed PFAs, requires pension operators to obtain retirees’ consent at the point they execute their Programmed Withdrawal Agreement. The commission noted that the directive takes immediate effect.

According to the Commission, the PenCare Initiative was established in collaboration with Licensed Pension Fund Operators (LPFOs) to improve access to quality healthcare services for eligible retirees under the Contributory Pension Scheme (CPS).

The initiative is designed to facilitate healthcare coverage for eligible retirees in line with the eligibility criteria approved by the Commission.

PenCom explained that the standardised consent process was approved to enhance the timely identification and enrolment of eligible retirees, eliminate delays associated with obtaining consent after retirement benefits have been processed, establish a uniform industry-wide procedure and improve the quality and completeness of enrolment records.

Under the new directive, every PFA is required to obtain the informed consent of eligible retirees who elect Programmed Withdrawal at the time they execute their retirement agreement.

The Commission specified that consent must be obtained using the standard PenCare Consent Form prescribed by PenCom. The form must be completed separately and must not form part of, or alter, the Programmed Withdrawal Agreement.

However, PenCom emphasised that the execution of the Programmed Withdrawal Agreement must not be made conditional upon a retiree agreeing to participate in the PenCare Initiative.

It further stated that a retiree’s decision to decline participation in the initiative must not affect the processing or payment of his or her retirement benefits.

To ensure that retirees make informed decisions, PenCom directed PFAs to explain the purpose of the PenCare Initiative before requesting consent and ensure that participation is voluntary, without coercion or undue influence.

The pension operators are also required to obtain retirees’ signatures on the prescribed consent forms and retain the signed documents as part of their retirement benefit records.

In addition, PFAs must maintain appropriate records of retirees who consent to participate in the initiative and those who decline. They are also required to submit information on consenting retirees to the Commission in the format and at the frequency prescribed by the regulator.

On data privacy, PenCom directed PFAs to ensure that personal information collected under the circular is processed solely for determining eligibility and facilitating enrolment into the PenCare Initiative.

The Commission further stated that such information must not be disclosed to third parties except where authorised by PenCom or required by law.

It also mandated pension operators to handle all personal information in accordance with the Nigeria Data Protection Act, 2023, the General Application and Implementation Directive (GAID), 2025, and other applicable laws and regulations issued by the Nigeria Data Protection Commission.

Regarding record keeping, PFAs are required to retain all executed PenCare Consent Forms as part of retirees’ retirement benefit documentation and make the records available to PenCom during routine or special supervisory examinations or upon request.

PenCom said it would monitor compliance with the circular through its routine supervisory and examination activities.

The Commission warned that failure to comply with the provisions of the circular may attract appropriate regulatory action in accordance with the Pension Reform Act 2014 and other applicable regulatory instruments.

PenCom also directed that all inquiries regarding the circular should be forwarded to the Head, Benefits and Insurance Department.

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With Nigeria’s pension assets standing at  ₦31.8 trillion in August 2026, the Director-General, PenCom, Omolola Oloworaran, disclosed this today in Abuja while highlighting the millstone and targets of the commission at the  fourth day of National Pension Week which commenced on Monday and is expected to to end tomorrow.

According to her pension assets grew from ₦20.79 trillion in July 2024 to ₦31.8 trillion in August 2026, reflecting an increase in the industry’s asset base over the period.

She also highlighted the approval by the President of the first-ever Exit Benefit for retirees from treasury-funded Ministries, Departments and Agencies (MDAs) of the Federal Government. A symbolic cheque was presented at the summit.

She also revealed that on November 10, 2026, President Bola Ahmed Tinubu is expected  to official lunch PenCare  and the Minimum Pension Guarantee in Abuja.

She called on the private sector to join the Federal Government and the pension industry in funding the Pension Protection Fund.

She also urged the pension industry to deliver competitive real returns above inflation, underscoring the need to strengthen retirement protection and preserve the value of pension savings.

“A pension is not a privilege for the few. It is a right within reach of all,” the keynote stated, highlighting the summit’s emphasis on expanding pension coverage and improving retirement security in Nigeria.

The post PenCom Eyes 3 Million New Funded Pension Accounts In 2027 appeared first on Business Today NG.

Themed ‘Pensions for All – Building a secure future together’, the week aims to deepen public understanding of pensions, promote financial inclusion, encourage retirement planning and strengthen confidence in Nigeria’s pension system.

The five-day initiative  is put together by the National Pension Commission (PenCom), will engage different segments of society through youth engagement; SME engagement and fair; Retiree fair; National Pension Summit and media briefing; creating opportunities for conversations around pension inclusion, retirement security and the future of Nigeria’s pension industry.

As a leading pension fund administrator in Nigeria, Stanbic IBTC Pension Managers believes the introduction of National Pension Week represents an important step towards bringing pension conversations closer to Nigerians and encouraging more people to take deliberate action towards securing their financial future.

Speaking on the initiative, Olumide Oyetan, the Chief Executive of Stanbic IBTC Pension Managers, said: “We commend PenCom on the introduction of National Pension Week and its commitment to deepening pension awareness and inclusion across Nigeria. We believe that when people plan confidently for the future, they are better positioned to pursue opportunities, navigate life’s transitions and achieve meaningful growth. Building that future begins with understanding the importance of pensions, planning early and taking deliberate action.”

Oyetan added, “At Stanbic IBTC Pension Managers, we remain committed to expanding pension education, encouraging greater participation and helping Nigerians make informed decisions that support their long-term financial wellbeing. As a leading PFA, we recognise our responsibility to champion these conversations and contribute to the growth of individuals, communities and Nigeria’s pension industry.”

Stanbic IBTC Pension Managers continues to advocate greater pension awareness and education, recognising that retirement planning is relevant at every stage of an individual’s working life.

The organisation encourages Nigerians to use National Pension Week as an opportunity to learn more about pensions, have conversations about retirement planning with family and friends, and take deliberate steps towards building a more financially secure future.

Through its support for the inaugural National Pension Week, Stanbic IBTC Pension Managers reinforces its commitment to working alongside PenCom and other industry stakeholders towards the shared ambition of ‘Pensions for All’ and a more inclusive and sustainable pension system in Nigeria.

The post Stanbic IBTC Pension Managers Backs National Pension Week appeared first on Business Today NG.

This call was made by the Director General, PenCom, Omolola Oloworaran, at the day two of ongoing National Pension week held in Lagos, with the theme “Inclusion Day (SME Fair)”

She  highlighted  the importance of small businesses to Nigeria’s economy, particularly their contributions to job creation, skills development, local production and distribution, innovation and economic activities in communities across the country.

The DG who was represented by Samuel Chigozie Uwandu, Commissioner, Inspectorate,emphasised that small businesses are more than commercial ventures, describing them as sources of livelihood for families, providers of employment and avenues for people who might otherwise struggle to enter the formal labour market.

She noted that behind every small business are individuals and families who make daily sacrifices, take risks, solve problems and work to build a better future despite challenging business conditions.

According to her the contributions of entrepreneurs deserve recognition, alongside practical support from institutions, policymakers and development partners to create an enabling business environment and expand opportunities for growth.

She stressed that the success of a business should not be measured solely by its ability to survive from day to day, but by its capacity to grow, withstand economic difficulties, create opportunities for others and provide lasting financial security for its owner.

To achieve this, entrepreneurs were encouraged to move beyond survival-oriented operations and embrace deliberate planning for growth and sustainability.

Key practices identified include proper record-keeping, financial discipline, separating personal finances from business funds, maintaining good customer relations, improving operational efficiency and responsibly managing income and expenditure.

Business owners were also encouraged to reinvest a reasonable portion of their profits into their enterprises.

Such reinvestment, the address noted, could help businesses acquire better equipment, improve technology, expand stock, train employees, enhance service delivery and reach new markets through advertising.

However, it acknowledged the need to balance reinvestment with the legitimate personal and family needs of entrepreneurs, stressing that the objective is to strike a sustainable balance between present needs, business expansion and future financial security.

She further stressed that business growth comes with increased responsibilities, noting that a stronger enterprise should be judged not only by its profitability but also by how it treats employees, meets its obligations and contributes to society.

She reminded Business owners of their responsibilities to pay applicable taxes and fulfil relevant statutory obligations, while governments were urged to provide an enabling environment for businesses to operate and grow.

She also called on employers to treat their workers fairly by paying salaries on time, providing safe working conditions and complying with applicable pension and tax requirements.

Employees, she noted, are not merely a cost of doing business but partners whose knowledge, skills, experience and commitment contribute directly to the success of an enterprise.

She called for timely remittance of employees’ pension contributions in accordance with applicable laws.

She warned that delayed or unremitted contributions could undermine workers’ retirement security and weaken confidence in the pension system.

She described pension compliance as more than a regulatory requirement, presenting it as a responsibility that reflects respect for employees and recognition of their contributions to business success.

She observed that many entrepreneurs devote their most productive years to building their businesses, working long hours, reinvesting earnings, supporting their families and creating employment opportunities, while giving insufficient attention to their retirement plans.

She challenged business owners to consider how they would sustain themselves financially if their businesses experienced prolonged downturns, circumstances prevented them from continuing to work or they eventually needed to hand over responsibility to the next generation.

She therefore encouraged entrepreneurs to develop a savings culture, prepare for unexpected events, separate retirement savings from business working capital and explore appropriate pension and long-term savings arrangements.

“For self-employed Nigerians and those operating in the informal sector,she  identified the Personal Pension Plan (PPP) under the contributory pension framework as an option for eligible individuals to build retirement savings.

“Business owners are encouraged to seek guidance from licensed Pension Fund Administrators (PFAs) and other relevant pension operators when considering appropriate arrangements.

The commission emphasised that retirement planning should begin while entrepreneurs are still actively earning, allowing them to build savings over time and strengthen their financial resilience.

It argued that business owners should aspire to retire with dignity rather than depend entirely on the continued operation of their businesses or financial support from family members.

The commission however called for stronger businesses, responsible business practices, protected employees, sustainable economic development and a more secure future for entrepreneurs and their families.

Participants were encouraged to engage constructively, share practical experiences, identify workable solutions and commit to actions that could make a measurable difference in the lives of Nigerian entrepreneurs and their employees.

The post NPW Day Two: PenCom Charges Entrepreneurs on Profit Reinvestment, Pension Compliance appeared first on Business Today NG.

The engagement, themed “Your Hustle, Your Future: Why Retirement Planning Starts Now,” will feature distinguished panelists who will discuss the benefits of starting retirement planning early and the steps young people can take to build long-term financial security.

According to PenCom, the virtual event will provide an opportunity for young people to gain insights into retirement planning and the importance of making informed financial decisions early in their careers.

The commission revealed that  the engagement would be streamed live across its official social media platforms to enable young people and other interested participants to follow the discussions.

The live broadcast will be available on Facebook via PenCom Instagram through @pencomnigeria, and YouTube on the commission’s Pencom YouTube channel.

The initiative forms part of efforts to raise awareness about retirement planning among young people and encourage them to take proactive steps towards securing their financial future.

The commission urged young people to participate in the engagement, stressing the importance of preparing for retirement early rather than waiting until later in life to make financial plans.

The post PenCom’s Online Youth Engagement on Early Retirement Planning Holds Today appeared first on Business Today NG.

The PFA of the Year award recognises pension administrators that demonstrate strong performance across investment management, contributor growth, customer experience, technological capability and retirement access to workforce.
For the company, the recognition builds on more than 20 years of experience in pension administration and fund management. Following the successful integration of Leadway Pensure and PAL Pensions, the company now manages over ₦3 trillion in assets for more than 1.2 million Retirement Savings Account holders, strengthening its capacity to serve contributors through its investment expertise and continued efforts to make pension services more accessible.

Commenting on the award, Olusakin Labeodan, Managing Director and Chief Executive Officer of the company said, “Being named PFA of the Year at the 2026 BusinessDay BAFI Awards is an exemplary recognition for Leadway PFA’s expertise, governance and innovations that we bring to pension administration. It reflects our work in investment management, customer service, and developing pension solutions that meet Nigerians’ evolving needs.”

“Over the past two decades, we have built our capabilities around helping individuals prepare for retirement, and we are grateful to our contributors for the trust they place in us. We are proud of what our team has achieved and see this award as an opportunity to build on that record, raise our standards further and deliver greater value to our contributors throughout their retirement journey.”

The company continues to build on its customer service capabilities and digital pension solutions to make retirement planning and pension management more accessible to Nigerians.

With its growing contributor base and assets under management, Leadway PFA remains focused on helping individuals and organisations prepare for retirement through effective pension administration and long-term fund management.

Leadway PFA has also earned recognition for its customer service. In 2025, the company received a Gold award for Customer Service Excellence at the West Africa Innovation Awards for the third consecutive year. It was also named West Africa Pension & Lifestyle

Company of the Year, following similar wins in 2023 and 2024. These accolades add to the recognition the company has received for its service delivery and contribution to the pension industry.

Organised by BusinessDay Media Limited, the BAFI Awards recognises excellence across Nigeria’s financial services industry. Now in its 14th edition, the awards spotlight institutions whose performance, leadership and innovation contribute to the development of their respective sector.

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For workers in the formal sector—such as those in federal government agencies, teachers, parastatals, university lecturers, staffs etc.—this can be contributed as an additional fund via voluntary contributions.

While, for those in the informal sector—such as market women, barbers, traders, students, petty traders, shop owners, etc.—their contributions will go into their Personal Pension Plan account.

All of these must go through Pension Fund Administrators (PFAs) approved by the National Pension Commission, (PenCom).

The post How Your Side Hustle Income Ends Up in Your RSA appeared first on Business Today NG.

Ideas for Small Businesses

POS: This is one of the cheapest businesses to start. With as little as N100,000, this business will take off. You can set aside a fixed percentage of your side income as your pension contribution.

Retail business: Provisions, foodstuffs, and even catering services such as small chops groundnuts, popcorn, snacks are also side hustles that can contribute to your pension savings.

Laundry services: This is another idea that is affordable and easy to start without needing much money. It can be set up on a small scale.

Vegetable farming / poultry or fish farming: Vegetables such as ugu, okro, ewedu, efo shoko, and efinrin can be planted in jerrycans and empty rice bags. You can get a carpenter to build small chicken pens so you can start your poultry business. For catfish, you just need bowls and a small space.

Service provider: Services such as freelance writing, transcription, and lecturing as a lesson teacher for WAEC, GCE,NECO JAMB, French, etc. can be done while still in active service. Some of these can be done on weekends, part-time, or even online.

You don’t need to struggle in retirement if you do the right thing.

The post Small Businesses that can Improve your Pension Contributions appeared first on Business Today NG.

Mr Oguche Aguda, former Chief Executive Officer, Pension Fund Operators Association of Nigeria,(PenOp), stated these while delivering a paper titled Post Recapitalisation and Market Dynamics in Nigerian Pension Industry at the 11th Annual National conference of Nigerian Association of Insurance and Pension Editors( NAIPE) in Lagos, recently.

According to him operators must ask themselves the question on how to leverage technology to make their operations quicker, simble and help them to scale.

He implore them to also meditate on how to use Artificial Intelligence to compete as well as how to manage cyber security threat.

Aguda highlighted fact about the on going recapitalisation exercise in the industry, as PenCom, having mandated all licensed pension fund administrators to raise their minimum capital from N5 billion to N20 billion and one percent more if their Asset Under Management is above N500 billion by June 2027.

Aguda said, second fact about recapitalisation in the pension sector is PenCom mandating all licensed pension fund custodians ( PFCs) to raise their minimum capital to N25 billion by June 2027.

He gave reasons for the pension sector recapitalisation as consolidation of the industry, need to shore up pension losses, to create confidence in the sector, to shape the industry for greater activities and to strengthen the industry.

Aguda warned the pension sector operators that recapitalisation was not the end of the business but just a piece of the puzzle pointing to them that in addition to the minimum recapitalisation directive there were other surrounding directives meant to make the industry stronger, more resilient and in line with the developmental needs of the country.

“Beyond recapitalisation, there are guidelines for cross- boarder pension contribution such as review of investment guidelines to allow for more investments in sectors that promote economic growth, guidelines for agents to deepen personal pension plan coverage and include minors, guidelines for improved corporate governance of licensed pension fund operators, framework for payment of additional benefit for retiring civil servants as well as framework for pension compliance certificate and contribution,” he highlighted..

On current pension market dynamics, Aguda said, overview of the entire market shows that the banking sector, insurance sector and investment managers are core owners of the market.

He listed banks which have stakes in the pension sector as Stanbic IBTC Bank which owns Stanbic IBTC Pensions, Access Bank which owns Access ARM Pensions, GTCO which owns GTCO Pension Managers, Fidelity Bank, which owns Fidelity Pension Managers Ltd and FCMB which owns FCMB Pensions.

Aguda highlighted pension institutions owned by insurance firms as Leadway Pension Managers owned by Leadway Group, Crusader Sterling Pensions, Oak Pensions Limited and Veritas Glanvils Pensions .

According to Aguda, those owned by investment groups include Parthian Pensions, Trustfund Pension, Cardinalstone Pensions and. CitizensPensions.

The post PFAs Urged to Leverage Technology to Scale Operations appeared first on Business Today NG.

Under the 2014 Pension Reform Act, 8% of a formal-sector worker’s monthly salary is deducted and the employer adds 10%, so 18% goes into each worker’s retirement account.

Personal Pension Plan

Workers can also save extra under the Personal Pension Plan (PPP), introduced by the National Pension Commission (PenCom), the apex regulator of the pension sector. They can save in any amount they choose, even if they are already under the CPS.

Self-employed and informal-sector workers

Self-employed and informal-sector workers, who are not covered by the CPS, can also use the PPP, whether they save ₦1,000, ₦10,000, ₦20,000 or any other amount. After three months of savings, contributors can access 50% of what they have saved, while the Pension Fund Administrator (PFA) invests the rest for retirement.

Future retirees must know that pension contributions alone will not be enough for retirement. Expanding your streams of income during your active years can help improve your retirement.

Saving

Saving is one thing all workers must learn to do before retirement. When you are able to save, you be able to invest in bank instruments such as treasury bills, money market funds and stock market. These will go a long way toward improving your retirement status.

Your health

There is a saying that  health is wealth. A good retirement plan amounts to nothing if you are sick. Every worker who wants to retire well must go for regular hospital check-ups and eat well.  For this to be possible, a Health Maintenance Organisation (HMO) plan must be in place.

Remember,retirement is better when you start early,live healthy, save and invest wisely.

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