26,556 organisations cleared for government contracts

• Published date: 01 February 2023
• Publication title: Nigeria - The Nation

Atotal 26,556 organisations who complied with the Contributory Pension Scheme (CPS) have been issued Pension Clearance Certificates (PCCs) by the National Pension Commission (PenCom, The Nation has learnt.

The PCC is evidence of compliance with the PRA 2014 and a prerequisite for suppliers, contractors, or consultants, soliciting any contract or business from Ministries, Departments, and Agencies (MDAs) of the Federal Government.

According to PenCom, the 26,556 organisations remitted about N115.71 billion for their 378,096 employees.

Since the introduction of PCCs in 2012, PenCom has observed substantial compliance with the CPS by the private sector.

Analysis showed 715 more organisations got the PCCs in 2022 than the 25,841 organisations that obtained the certificate in 2021.

However, it is imperative to note that PCCs expires on the last day of the year, irrespective of the date they were issued within the year.

Consequently, all 26,556 PCCs given in 2022 have expired, and the organisations must apply and obtain fresh PCCs for the year 2023.

PenCom Director-General, Mrs. Aisha Dahir-Umar said the commission commenced the issuance of PCC to organisations in 2012 in line with the Pension Reform Act, 2014 (PRA, 2014), which mandates organisations with at least three employees to participate in the CPS.

She stated that PenCom issues PCCs to organisations that have complied with the requirements.

She reiterated its commitment to the regulation and supervision of the pension industry.

To qualify for PCC, she explained that employers must ensure their employees' open Retirement Savings Accounts (RSAs) with any Pension Fund Administrator (PFA) of the employees' choice.

She said: 'Employers must also remit employer and employee monthly pension contributions to the appropriate Pension Fund Custodians (PFCs) no later than seven working days from the payment date of salaries. Furthermore, employers with pension schemes before the CPS must transfer Pension Funds and Assets in their custody to licensed pension operators. Finally, employers must provide their staff with Group Life Insurance Policy (GLI).

'The Public Procurement Act requires the PCC to be submitted as evidence of compliance with the PRA 2014 by all suppliers, contractors or consultants soliciting any contract or business from Federal Government Ministries, Departments and Agencies (MDAs). However, it should be noted that under the PRA 2014, compliance is not mandatory for organisations that employ less than three...