The National Pension Commission has issued a stern warning to all licensed pension fund administrators on the inducement of retirement savings account holders.
The circular directed to all pension fund administrators was signed by the Director of the Surveillance Department, A.M. Saleem, PenCom, reiterating its zero-tolerance stance against the inducement of RSA holders.
In a new circular, referenced PenCom/INSP/CIR/Surv/2025/1379, the Commission reminded PFAs of an earlier directive dated September 14, 2022, which prohibits them from offering gifts, cash, or any form of incentive to influence RSA transfer decisions.
PenCom stressed that any PFA found offering or facilitating inducements, whether financial or non-financial, to sway an RSA holder’s decision to transfer or retain their account would face immediate regulatory action.
“The Commission hereby emphasises its zero tolerance for any form of inducement. Accordingly, any PFA found offering, granting, or facilitating financial or non-financial inducements to influence an RSA holder’s decision to transfer or not transfer his/her RSA shall be immediately barred from receiving RSA transfers.
In addition, the Commission shall impose further regulatory sanctions against the PFA and/or its officers, in strict accordance with the Framework for the Regime of Sanctions.
“This addendum to the circular on inducement to RSA holders takes immediate effect,” PenCom declared, underscoring its determination to ensure transparency, fairness, and accountability in the pension industry.
The latest directive comes amid growing regulatory oversight aimed at protecting contributors and strengthening confidence in Nigeria’s contributory pension scheme.
Last month, PenCom issued a similar warning to financial institutions and employers against interfering in the choice of Pension Fund Administrators of their employees or the transfer of their Retirement Savings Accounts.
PenCom said that it has observed the illegal and unethical practices by certain financial institutions and employers, where their employees and those of their vendors are being coerced or unduly influenced to open or transfer their Retirement Savings Accounts with specific Pension Fund Administrators, particularly those directly affiliated with the employer or indirectly through custody of their pension assets with Pension Fund Custodians.(Punch)
