The National Pension Commission (PenCom) has, in a circular signed by its Director of the Surveillance Department, A.M. Saleem, cautioned all licensed pension fund administrators (PFAs) on the inducement of retirement savings account holders and reiterated its zero-tolerance stance against the inducement of RSA holders.
In the circular with Reference No PenCom/INSP/CIR/Surv/2025/1379, the Commission reminded the PFAs of its earlier directive dated September 14, 2022, which barred them from offering gifts, cash, or any form of incentive to influence RSA transfer decisions.
The commission maintained that any PFA found offering or facilitating inducements, whether financial or non-financial, to influence an RSA holder’s decision to transfer or retain their account, would face sanctions.
The circular partly reads: “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.
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“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”, it added.
It would be recalled that last month, the commission issued a similar warning to financial institutions and employers against interfering in its choice of PFAs of their employees or the transfer of their Retirement Savings Accounts.
It stated that it had observed the illegal and unethical practices by certain financial institutions and employers, whose employees and those of their vendors were being forced or unduly influenced to open or transfer their RSAs with specified PFAs, especially those directly affiliated with the employer or indirectly through custody of their pension assets with Pension Fund Custodians.
Industry experts believe that the latest warning of the PFAs is desirable in view of the abuses in the pension management in order to protect contributors and improve their confidence in Nigeria’s contributory pension scheme (CPS).
