PENCOM registration in Nigeria is one of the key compliance requirements for companies engaging in business in Nigeria with a minimum of 15 employees. In this guide, I will walk you through the requirements for PENCOM registration and the cost to secure a certificate
Just like the NSITF compliance certificate and ITF, the PENCOM body is one of the key drivers of public sector compliance in Nigeria.
Employers looking forward to doing business with the Government must have these documents. They are the pathways to success.
PENCOM Overview
The National Pension Commission also called PENCOM is a Federal Government Agency that was established under the Pension Reform Act 2004 to regulate, supervise and ensure the effective administration of pension matters in Nigeria.
If you are reading this article and your DAD is a civil servant at home, then you must have heard him talking about PENSION before (especially if he is retired)
The Pension body ensures that every employee who works in either public or private sector receives his retirement benefits as at when due.
The functions of the Commission include:
- Regulation and supervision of the Scheme established under the Act
- Issuance of guidelines for the investment of pension funds.
- Approving, licensing, regulating and supervising pension fund administrators, custodians and other institutions relating to pension matters.
- Establishing standards, rules and guidelines for the management of the pension funds under the Act.
- Ensuring the maintenance of a National Data Bank on all pension matters.
- Carrying out public awareness and education on the establishment and management of the Scheme.
- Promoting capacity building and institutional strengthening of pension fund administrators and custodians.
Why Companies Should Register With PENCOM
- Registration with PENCOM provides Job security for Employees
- The PENSION ensures every individual who worked either in private or public service is entitled to retirement benefits
- Public trust and accountability
- It is a key compliance obligation for companies
Who Must Register With PENCOM?
The following entities are required to register with the Pension agency in Nigeria and secure the compliance certificate
- Employers of labour with 3 or more employees
- Academic Schools and training institutes
- Companies provides hospitality and accommodation services e.g Hotels, restaurants, and resorts
- Construction and engineering companies
- Architectural companies
- SMEs and startups (with considerable number of staff)
- Partnerships and enterprises with staff
- Telecommunication companies
- Consulting companies
- Real estate companies
- Survey companies
- Mining companies
- IT companies
- Contractors bidding for government jobs and contracts
Benefits of PENCOM Registration for Employers
Registering for PENCOM provides the following benefits for Employers
- It gives access to government contracts & due diligence
- Legal compliance
- It builds employee trust & corporate credibility
- Avoiding penalties and sanctions
About PENCOM Compliance Certificate
The Pension Commission Compliance Certificate is a document issued by the agency confirming that your company is compliant with the Pension Reform Act, 2014.
This certificate is basically needed by companies when;
- Bidding to secure Federal and State Government contracts
- Interacting with international government agencies
- Obtaining or renewing important sectoral licenses in Nigeria like DUNS number e.t.c
- Proving employee pension remittance compliance
- It also serves as evidence of compliance with the Pension Reform
PENCOM Registration Requirements for Company
The following documents are required for the initial stage of registering with the Pension Commission of Nigeria
Company Documents
- Certificate of Incorporation (CAC)
- Status Report
- Company Tax Identification Number (TIN)
- Registered business address
- Contact details of employer
Employee Details
- Employee list with full names
- The Salary structure of employees
- National Identity Number (NIN)
- Employment start dates
- RSA (Retirement Savings Account) details
Pension Fund Administrator (PFA)
Under this form, you will fill all relevant information relating to the Pension Fund Administrator
PENCOM Registration Process for Companies
Once you have secured all necessary documents for your registration with the Pensions Commission, next is to proceed with the steps below;
1. Online Portal Registration
This can be done via the online portal.
- Visit the PENCOM Website
- Start registration
- Input the employer Code, RC number (auto-filled), Official company address, Contact and email information
- Once submitted, you’ll be redirected to your company dashboard.
2. Update Company Profile
Here, you will be required to upload the following documents
- CAC Certificate
3. Upload Staff List
- Download the staff list template online
- Fill in: Full names (as registered with PFA), RSA PINs, Position, Date of employment, Monthly salary
- While filing, I always recommend you ensure this list matches the pension contribution schedule
4: Upload Pension Contribution Schedule
- Input for each employee: Salary, Contribution breakdown, Dates of payment
- Upload for each year separately (for renewals)
- Ensure there are no duplicates
5: Upload Group Life Insurance Documents
This includes
- Insurance provider
- Premium receipt
- Policy period and sum assured
- Certificate of coverage
- Employee list matching with your staff list
- Policy period and sum assured
6. Upload Evidence of Payment
- Payment evidence for the months
- Penalty receipts if any
- Specify: Amount, Period covered, Date of payment, Fund Custodian used
How a Consulting Firm Can Help
You can employ the services of Legacy Benjamin Consult, Once of the top business consulting and compliance professional in Nigeria to process your PENCOM registration.
We can help with;
- Document preparation
- Employee onboarding
- Registration support
- Ongoing compliance
Send us a DM on WhatsApp @ 08066108299
About PENCOM Employer Code
This is a unique identification number assigned to a company after successful registration with the National Pension Commission in Nigeria
Cost To Get PENCOM Compliance Certificate in Nigeria
The Certificate is issued annually. It serves as evidence that such company has complied with PENSION obligations.
Below is the cost of obtaining one;
| Cost Component | Cost |
| Remittance of Pension Contributions | 18% of a Min. Of 3 Staff Salaries for Max. Period of 36 Months |
| Processing of Group Life Insurance. Minimum of 3 Staff (If the number exceed 3, the cost will change) | ₦35,000 to ₦65,000 |
| Professional Fee | ₦100,000.00k to ₦300,000 |
Check PENCOM Certificate Registration Status
You can confirm your registration status by
- Verifying the employer code
- Confirming employee RSA activation
- Contacting PFA or PENCOM office nearby.
FAQs on PENCOM Registration for Companies
Q: Is PENCOM registration compulsory for all companies?
A: Yes. Companies with employees from 3 and above are expected to register and contribute annually to the commission.
Q: How many employees must a company have before registering?
A: 3 employees and above
Q: How long does PENCOM registration take?
A: With the help of a professional consultant like Legacy Benjamin Consult 08066108299, registration should take between 10 and 20 working days
Q: Does PENCOM registration cost money?
A: Yes. Nothing is free, even in Freetown
Q: Can a company register online?
A: Visit the website to begin
Q: What is a PENCOM Employer Code?
A: A unique identification number that indicates that such employer has been compliant with pension payments
Q: Do employees need a PFA before registration?
A: Yes
Q: Can a company change its PFA later?
A: No.
Q: What happens if a company doesn’t register?
A: Such company will face fines and legal charges for non-compliance
Conclusion:
In conclusion, the National Pension Commission (PENCOM) is an agency of the Federal Government saddled with the responsibility of regulating companies and employers of labour in both public and private sector.
They ensure that every employee who works in Nigeria is entitled to his/her retirement benefits. Employers are required to contribute annually to the commission.
I hope this article has provided enough insights into the requirements for PENCOM registration and cost to obtain a certificate for companies.
If you need further assistance, kindly send us a DM
