Nigeria: PenCom Directs PFAs to Expand Presence Across Nigeria’s Geopolitical Zones

The National Pension Commission, PenCom, has issued a directive mandating all Pension Fund Administrators, PFAs, to establish branch offices in at least two states within every geopolitical zone in Nigeria.

Furthermore, PenCom has instructed PFAs to establish branch offices in any state where they have a minimum of 10,000 funded Retirement Savings Accounts, RSAs, highlighting the aim of meeting the growing demand for pension services from the public.

This directive was communicated through a circular issued by PenCom to all PFAs and custodians, titled: “Circular on the operations of branch offices and service centres by licensed pension fund administrators.”

In the circular, PenCom emphasized the need for increased representation of pension fund administrators across the country to effectively address the rising demand for pension services. The new minimum requirements outlined in the circular are intended to enhance the efficiency of service delivery by PFAs through their branch offices and service centers.

The circular stated the following conditions for opening branch offices and service centers:

1. A PFA is required to open a branch office in any state where it has up to 10,000 funded Retirement Savings Accounts (RSAs).
2. In addition to the requirement in (1) above, a PFA shall open a service center in a different location within the same state for every additional 10,000 funded Retirement Savings Accounts (RSAs).
3. Regardless of the conditions in (1) and (2) above, a PFA shall establish a service center in any state where it has up to 2,000 funded RSAs.
4. Any PFA managing pension funds for state government employees or any other pension scheme under the Contributory Pension Scheme (CPS) shall promptly open a branch office in the state capital once the state commences funding the scheme.
5. Irrespective of the conditions stated in (1), (2), and (3) above, every PFA is required to establish branch offices in a minimum of two states within each geopolitical zone of the country.

These new directives are aimed at enhancing the efficiency of PFAs in serving Retirement Savings Account (RSA) holders across Nigeria.