PenOp unveils new tech-driven pension remittance system

The Pension Fund Operators Association of Nigeria (PenOp) has announced a major upgrade to the pension remittance process, set to launch on April 1, 2025. This initiative will see the introduction of four Pension Service Solution Providers to streamline and standardize pension contributions across the sector.

Speaking at the 2024 PenCom Media Conference in Lagos, PenOp’s Chief Executive Officer, Oguche Agudah, emphasized the critical role of technology in addressing persistent challenges in the pension industry. These challenges include uncredited retirement savings accounts and remittances received without clear schedules.

“We are working on a technology system whereby we are engaging some firms that we call the Pension Service Solution Providers. The industry will work with these solution providers, including PayPen by Netline Ltd., Paythru by Pethahiah by Rehoboth International Ltd., Pension Central by Chams, and Cyberpay by Cyberspace Ltd., to ensure that everyone who is paying pension from April 1 has to go through this model.

“What will happen is that when the employer pays pension, it goes straight to the RSA holder. There are going to be four of them that we have engaged now. With these, there is going to be a standardised remittance template. There will also be validation checks to eliminate instances of We got money, but don’t know where it’s coming from. We are also going to do awareness and will be looking to you guys for help between now and April 1 so that employers will know that from April 1, you can just go to the bank and say help me send my pension. It will not go again. The result is that RSA holders will get their pension,” Agudah revealed.

Under the new system, employers will remit pension contributions directly to Retirement Savings Accounts (RSAs) using a streamlined process facilitated by the solution providers. Agudah assured stakeholders that the model is designed for accuracy, efficiency, and transparency.

He added, “A more transparent remittance process allows for better tracking and reporting, which can enhance trust among stakeholders, including employees, employers, and regulatory bodies.

“A well-functioning pension system contributes to economic stability by mobilising long-term savings for investment in various sectors. Timely pension remittances enhance this effect by ensuring that funds are available for investment purposes.”

The upgraded remittance process is expected to enhance trust among stakeholders by enabling better tracking and reporting. PenOp also highlighted the broader economic benefits, such as increased efficiency in mobilizing long-term savings for investment and reducing administrative burdens for pension fund administrators and custodians.

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