PenCom targets structured pension plans for all workers in Nigeria with APAs

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Chuks Udo Okonta

The National Pension Commission (PenCom) has said it hopes to bring all workers in Nigeria – formal and informal into a structured pension platform through the Approved Pension Agents (APAs) network.

The Director-General of PenCom Ms. Omolola Oloworaran, said this at an event in Lagos, stating that PenCom is committed to better lives for all Nigerians in retirement.

She submitted that in line with PenCom’s 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).

PenCom had earlier invited suitably qualified financial technology firms and other corporate entities desirous of being licensed as Approved Pension Agents 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.

“To this end, the Commission has approved a fee structure for APAs that incentivises them to on-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.