CrusaderSterling highlights how automation is eliminating pension payment delays

Stakeholders have highlighted how automation is transforming Nigeria’s contributory pension scheme, eliminating long-standing payment bottlenecks, improving transparency and accelerating retirees’ access to their benefits.

The experts disclosed this at the 15th Annual Stakeholders’ Forum hosted by CrusaderSterling Pensions in Lagos, where regulators, pension operators and corporate stakeholders examined how technology is reshaping pension administration under the theme, “Pensions for All: Driving Inclusion and Innovation for Quality Retirement.”

One of the biggest improvements identified at the forum is the elimination of “hanging remittances”—a persistent challenge that previously left pension contributions trapped in suspense accounts because of incomplete contributor information.

Funmilola Oluwajoba, executive director of operations at CrusaderSterling Pensions, explained how technology has addressed the problem.

“Before the introduction of Pension Payment Solution Service Provider software, employers would make remittances but send schedules with incomplete information. Consequently, we were unable to credit those monies into the accounts of the relevant stakeholders. If an employer paid for 15 people but 10 did not have a PIN, the money for those 10 individuals would hang.”

She explained that the Pension Payment Solution Service Provider (PSSP) platform now validates contributors’ Pension Identification Numbers (PINs) before payments are processed, ensuring that contributions are immediately matched with the appropriate Retirement Savings Accounts.

“With the introduction of PSSPs, the software automatically validates the contributor’s PIN with the Pension Fund Administrator before allowing the remittance,” she added.

The event also highlighted how digital regulatory reforms introduced by the National Pension Commission (PenCom) are enabling compliance across the industry through automated monitoring and electronic service delivery.

Sarah Joseph, principal manager at PenCom’s South-West Zonal Office, said the Commission has continued to deploy technology to improve accountability and transparency.

“Today’s panel discussion focused on transparency, specifically what PenCom is doing to ensure a transparent industry,” She said during a panel discussion.

“We covered various issues, from contribution remittances to accountability, and the remittance system PenCom has put in place,” she added.

She disclosed that PenCom has digitised the Pension Clearance Certificate application process, making compliance easier for employers while ensuring workers directly benefit from penalties imposed for delayed remittances.

“The application process for the Pension Clearance Certificate has been fully automated through an electronic platform. This has successfully ensured compliance; late remittances incur a two per cent penalty, and all those penalty benefits go directly into the retirement savings accounts of the beneficiaries,” Joseph added.

Beyond contribution management, automation has also shortened benefit processing timelines by decentralising approvals to Pension Fund Administrators (PFAs), significantly reducing the waiting period for retirees.

“Benefit applications no longer go to PenCom; they are handled directly by the PFA,” Oluwajoba noted.

“PenCom has given PFAs a maximum turnaround time of 24 to 48 hours. If we receive a complete document at 8 a.m. on Monday, we must complete the computation and send it to the Pension Fund Custodian by the close of business on Tuesday. If your documentation is complete, you should be credited by Wednesday evening at the latest,” she added.

The stakeholders said the next frontier for the industry will focus on expanding digital engagement and improving user experience for contributors.

Rotimi Odeyemi, head of Finance at Still Earth Holdings, acknowledged that technology has come to stay, calling for more collaboration between the regulator and PFAs.

“We want to see a kind of handshake between the regulator and the PFA. We expect that kind of technology to be at the forefront so that whatever benefit we can get outside the country is available. Once you log in, you want to get all the necessary information, log your ticket, and see it resolved.”

The director of Administration at the Lagos University Teaching Hospital (LUTH), Omolola Fakeye, also commended the industry’s commitment to innovation, describing technology as central to sustaining efficiency and delivering stronger returns for contributors.