by NIyi JACOBS
A recent directive from the National Pension Commission (PenCom) has sparked a wave of compliance activity across Nigeria’s corporate sector as companies begin demanding Pension Clearance Certificates (PCCs) from vendors and service providers.
The directive, first issued in May 2025, gave Licensed Pension Fund Operators a six-month deadline to enforce PCC compliance across their entire business ecosystem, including vendors, parent companies, subsidiaries, and institutional shareholders. It is designed to strengthen adherence to the Pension Reform Act (PRA) 2014, which mandates employers to participate in the Contributory Pension Scheme and remit contributions no later than seven working days after salary payments.
In a circular signed by A.M. Saleem, Head of PenCom’s Surveillance Department, the Commission emphasized that all counterparties engaging with LPFOs must hold valid PCCs as a precondition for entering into service or technical agreements.
Companies have since begun issuing formal notices to vendors, requesting valid PCCs as a condition for ongoing or new service arrangements. Sources told BusinessNG that letters are already being dispatched across industries, giving vendors a strict window to comply.
As of May 15, PenCom had issued 21,978 PCCs to employers in sectors ranging from finance to telecommunications. The certificate serves as proof that an organization is meeting its pension obligations and remains a key requirement for bidding on government contracts.
Beyond vendor relations, PenCom’s directive has deeper implications for investments. LPFOs are now restricted to working only with institutions that enforce PCC compliance within their own vendor networks. Each counterparty must execute a compliance attestation annually, embedding accountability across the system.
Analysts say the move could improve contribution rates and reduce defaults, forcing private employers into full compliance. PenCom, meanwhile, insists the directive underscores its commitment to strengthening pension governance and ensuring that Nigerian workers retire with security.
