PenCom to license approved pension agents, offers 40% bonus of management based fees

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Chuks Udo Okonta

The National Pension Commission (PenCom) has invited suitably qualified financial technology firms and other corporate entities desirous of being licensed as Approved Pension Agents (APAs) to apply for a licence.

PenCom stated this in a circular entitled; Fee Structure for Approved Pension Agents referenced PenCom/Insp/Surv/Aut/2025/1584.1, dated, September 25,2025, signed by Director Surveillance Department PenCom Abdulrahman Saleem and sent all All Licensed Pension Fund Operators.

PenCom submitted that APAs are eligible for an annuitised performance bonus of up to 40 per cent of Management Based Fees on all contributions they mobilise, subject to the achievement of agreed performance standards, noting that this ensures that incentives are both sustainable and directly aligned with the long-term growth of the pension fund and the retention of contributors.

The pension industry regulator said In line with its mandate to expand pension coverage and promote financial inclusion, it has issued a framework on the licensing of Approved Pension Agents as strategic partners for the enrolment of eligible persons in the Personal Pension Plan (PPP).

“To this end, the Commission has approved a fee structure for APAs that incentivises them to un-board PPP participants, follow up on regular payment of pension contributions and facilitate contingency withdrawal. The Fee Structure is based on Key Performance Indicators (KPIs), which ensure that only APAs that meet the KPIs are paid,” it posited.

PenCom stated that the fee structure provides APAs with diversified income streams linked to specific services rendered.

It said details of the license procedure can be obtained via the Commission’s website @ www.pencom.gov.ng.