March 17, 2025/CSL Research

The National Pension Commission (PenCom) has introduced a new directive granting Pension Fund Administrators (PFAs) full authority to approve and process various retirement benefits without requiring prior approval from the Commission. Effective from 1 June 2025, this policy aims to streamline pension payments and eliminate bureaucratic delays in Nigeria’s Contributory Pension Scheme (CPS). Previously, PFAs needed to obtain PenCom’s “No Objection” before disbursing funds to Retirement Savings Account (RSA) holders. Under the new directive, PFAs can now process and approve various benefits, including programmed withdrawals, retiree life annuities, benefits for temporarily unemployed individuals, and refunds for those exempted from the CPS. Once the necessary documentation is completed, PFAs will instruct the appointed Pension Fund Custodians (PFCs) to make payments, while notifying PenCom within two working days. This change ensures a faster and more efficient process for RSA holders accessing their retirement funds.

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