PenCom Mandates BVN for Retirement Savings Account Registration Starting February 1
The National Pension Commission (PenCom) has introduced a new requirement mandating the use of Bank Verification Numbers (BVN) for all Retirement Savings Account (RSA) registrations and data recapture processes. The directive, effective February 1, is part of PenCom’s broader initiative to strengthen the security and integrity of Nigeria’s pension database.
New BVN Requirement for RSA Registration
In a circular signed by A.M. Saleem, Head of PenCom’s Surveillance Department, the commission emphasized that BVNs will now be a mandatory field for processing new RSA registrations and updating data for existing account holders.
“All Pension Fund Administrators (PFAs) must require the mandatory provision of the Bank Verification Number from individuals/RSA holders in processing their requests for RSA registration or data recapture,” the circular stated.
To ensure compliance, PFAs are directed to update their forms to include a mandatory 11-digit BVN field for both new registrations and data recaptures. Additionally, PFAs can now update the BVN records of existing RSA holders already registered on the Enhanced Contributor Registration System (ECRS).
Amendments to RSA Registration Guidelines
PenCom also announced an amendment to the Revised Guidelines on RSA Registration (2024), addressing challenges faced by PFAs in obtaining employment documentation from new employees.
Formal sector employees can now register using their staff identity cards in place of traditional documents such as Letters of Employment or First Appointment. Other acceptable identification includes:
- National Identity Cards or Enrollment Slips issued by the National Identity Management Commission (NIMC), which must include the employee’s National Identification Number (NIN).
This amendment aims to simplify the registration process and encourage broader compliance among employees.
Who Are PFAs?
PFAs are entities licensed by PenCom to manage and invest pension funds in employees’ RSAs. Some notable PFAs in Nigeria include:
- Access Pensions Limited
- Fidelity Pension Managers Limited
- FCMB Pensions Limited
- Guaranty Trust Pensions Limited
These institutions play a critical role in ensuring retirees’ funds are securely managed and accessible.
Rising BVN Enrollment in Nigeria
PenCom’s directive aligns with growing enrollment in the BVN system, which serves as a unique identifier across the Nigerian banking industry.
The Nigeria Inter-Bank Settlement System (NIBSS) reported that BVN registrations reached 64.8 million in January 2025, reflecting an increase of 800,000 registrations in just two months. Despite this growth, the number of active bank accounts—231.1 million as of July 2024—still far exceeds BVN enrollments.
Experts attribute this gap to the ability to link multiple accounts to a single BVN, a feature designed to simplify financial transactions and reduce redundancies.
CBN’s Non-Resident BVN Initiative
To support Nigerians in the diaspora, the Central Bank of Nigeria (CBN) announced plans for a non-resident BVN platform. According to CBN Governor Yemi Cardoso, the initiative will enable Nigerians abroad to operate local bank accounts and address Know Your Customer (KYC) requirements remotely.
Initially slated for launch in December 2024, this platform aims to facilitate seamless participation in the Nigerian economy for expatriates. However, the project has yet to be officially rolled out.
Conclusion
PenCom’s BVN directive represents a significant step toward securing Nigeria’s pension system while encouraging financial inclusivity. With the added convenience of streamlined RSA registrations and growing BVN enrollments, this initiative is poised to enhance trust and transparency within the financial ecosystem.
As the deadline approaches, employees and PFAs must ensure compliance to align with PenCom’s enhanced data integrity goals.
For related updates, read: “79,518 Prisoners in Nigeria to Get NIN as NIMC Licenses Correctional Services to Enroll Inmates.”
