National Pension Commission

personal finance

National Pension Commission (pencom): What you should know about Pension, offices and contacts addresses in Nigeria

National Pension Commission (pencom): What you should know about Pension, offices and contacts addresses in Nigeria

National Pension Commission – Any civil servant, young and old should be familiar with the term Pension and its benefits.

An Over View Of Pension Commission

Pension is the specific or certain amount being paid to retirees who are no longer in active service, this payment is usually a monthly affair, as if they are still receiving salary, but not exact salary while in active service.

In Pension scheme, the employer contributes a certain amount with a Pension Fund Administrator (PFA) on-behalf of the employee, the employee accesses this fund after retirement.

I regret to assert that so many employee in the Nigerian labor force do not know how pension operates and what they are expected to contribute, as such the benefit or doubts this article stands to clear.

In Nigeria, pension has been modified as obtained in the Pension Reform Act 2014 (PRA), employee now contribute 8% of their salaries while their employers contribute 10% into this retirement fund.

Example: Assuming Godfrey Fidelis works with Federal Airport Authority of Nigeria (FAAN) and earns a salary of N300k monthly.

It’s therefore expected that FAAN should contribute a minimum of N30k monthly while Godfrey Fidelis contributes N24k monthly into this retirement plan. This should be a monthly practice till Godfrey Fidelis retires.

How your Pension is being managed

Recall, the PRA of 2014, established a body now known as National Pension Commission (NPC), this NPC is taxed with the enforcement and administration of the Pension regulation a provided by PRA 2014.

Companies under the jurisdiction of NPC are

  • Pension Fund Administration (PFA)
  • Pension Fund Custodian (PFCS)

From the above, an employee is required to choose a PFA as he/she so wished, open a pension account which requires passport photographs and other details.

You may also like: Money market funds investment managers in Nigeria, start your investment today

On successful registration, the employee is issued a pension PIN, which should be forwarded to the employer to fulfill the monthly responsibility of pension rendition.

Your pension contribution is not an idle fund, the PFA’s invest these funds in approved investments like government bonds, treasury bills etc. All investments are strictly monitored by the Pension Fund Commission, who met strict penalties on erring or defaulting PFA’s or custodians.

How to access your Pension

It’s noteworthy to understand that as an employee, you are not allowed to access your pension funds/ retirement savings while in active service.

There’s this rule that you cannot access your retirement savings if you retire at the age of 30, you can only access the account when you are 50 years and above.

How you could withdraw or use your Pension fund after retirement

  • You could withdraw a lump sum from the total amount, the amount left should be enough to procure a programmed fund withdrawals or annuity for life.
  • Programmed monthly or quarterly withdrawals calculated on the basis of expected life span.
  • Annuity for life purchased from a life insurance company

Aside the 50 years retirement rule, there are exceptions that could stand.

  • If a person leaves employment before 50 years on health issues, in accordance with terms and conditions of employment, it allows for partial lump sum removal in certain cases. (legalpadi)

Historical background of the National Pension Commission

Prior to the enactment of the Pension Reform Act 2004, pension schemes in Nigeria had been bedevil by many problems.

The Public Service operated and unfunded Defined Benefits Scheme and the payment of retirement benefits were budgeted annually.

The annual budgetary allocation for pension was often one of the most vulnerable items in budget implementation in the light of resource constraints.

In many cases, even where budgetary provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of payment of pension rights.

It was obvious therefore that the Defined Benefits Scheme could not be sustained.

In the private sector, many employees were not covered by the pension schemes put in place by their employers and many of these schemes were not funded. Besides, where the schemes were funded, the management of the pension funds was full of malpractices between the fund managers and the Trustees of the pension funds.

This development necessitated a rethink of pension administration in Nigeria by the administration of then President Olusegun Obasanjo.

Accordingly, the administration initiated a pension reform in order to address and eliminate the problems associated with pension schemes in the country.

The outcome of the reform was the enactment into law of the Pension Reform Act 2004.

National Pension Commission offices and contact details in Nigeria

Headquarters address:  174 Adetokunbo Ademola Crescent, Wuse 2, Abuja, Nigeria.


Phone: (0700-225-573-6266) +234 9460 3930

North-Central Zonal Office: Plot 1, Aderemi Adeleye Street, Off Fate Road, GRA Illorin, Kwara State

Phone: +234 805 599 9341.

North-East Zonal Office: Plot No. 10, Gombe-Biu Road, Gombe, Gombe State

Phone: +234 805 599 9339

North-West Zonal Office: No. 22, Kazaure Road, Bompai, Kano, Kano State

Phone: +234 805 599 9335

South West Zonal Office: 88A Oduduwa Crescent, Ikeja, GRA, Lagos State.

Phone: +234 805 599 8808

South-East Zonal Office: Road 1/47, Udoka Housing Estate, Awka, Anambra State

Phone: +234 805 599 9337

South-South Zonal Office: Plot 9, PCN Layout, Diamond Hill Calabar. Cross River State

Phone: +234 805 599 9332, refer to the national pension commission email address above in case.

National Pension Fund

FAQ On National Pension Commission

Pension Certificate: This is a retirement savings certificate which contains every necessary information about your occupational retirement provision.

It avails you what benefit you and your family are expected to receive on retirement, in case of disability and in event of death. It as well provides information on if, you have purchasing potential and how strong it is.

Pension in Nigeria: A record has shown that Nigerian workers are not prepared for retirement. Out of the 69 million people employed, fewer than 7 million are said to have pension accounts.

Previously, Nigeria runs a defined benefits system where the pension account was topped up by the employer, or the government in case of civil service. This however meant that retirement benefits were part of annual government budget, it was too expensive for employers to maintain. Hence the shift to a co-funded system. (stearsng)

Functions of National Pension Commission: The Pension Reform Act established the NPC (PenCom) as a regulatory body to supervise and ensure effective administration of Pension matters in Nigeria. Functions of the commission include:

  • Regulation and supervision of scheme established under the Act.
  • Issuance of guidelines for the investment of Pension Funds
  • Approving, Licensing and regulating and supervising pension fund administrators, custodians and other institutions relating to pension matters, as the commission may from time to time determine.
  • Establishing standards, rules and guidelines for the management of pension funds under the Act
  • Ensuring maintenance of a National Data Bank on all pension matters
  • Carrying out public awareness and education on establishment and management of the scheme
  • Promoting capacity building and institutional strengthening of pension fund administrators and custodians
  • Receiving and investigating complaints of impropriety levelled against any pension fund administrator, custodian or employer or any of their staff or agents.

Director General of National Pension Commission: The acting director general of NPC is Hajia Aisha-Umar.


Every information that should aid your knowledge of the National Pension Commission has been carefully detailed in this article. Kindly educate yourself by going through it over and over should there be need for it, thank you for your time.


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