Yes, according to a PenCom notice as reported in 2023. Here is exactly what was said, and how much weight it carries.
What PenCom has said
Business Journal reproduced a PenCom public notice on 1 September 2023. It says that issuing the Pension Clearance Certificate is free of charge. TheCable, Vanguard and Voice of Nigeria reported the same notice.
The notice itself has not been found on PenCom's own website. So treat it as PenCom's stated position, as reported. It is not a fee schedule you can browse to.
Where the statement appears
The free-of-charge line appears in the same Business Journal report as PenCom's warning about touts and agents. The article on PenCom's warning on agents and touts covers that part, and reports what PenCom said without comment.
What an employer still pays
"Free of charge" refers only to PenCom's own fee for issuing the certificate. It does not mean pension compliance costs nothing. An employer still carries:
- Its own pension contributions: at least 10% of monthly emoluments from the employer, and 8% of monthly emoluments from the employee, deducted and remitted every month.
- Any penalty owed for contributions that were late. The Act sets a penalty of at least 2% of the unpaid contributions for each month or part of a month.
- The premium on a group life insurance policy, covering three times each employee's annual total emolument. A current policy is required for the certificate.
None of these is a fee PenCom charges for the certificate. They are the underlying obligations behind it.
PenCom's requirement sheet also asks for evidence that all outstanding contributions and penalties have been paid. So the real cost of the certificate is bringing your record up to date first, not a fee at the door.
If a charge is quoted to you
The reported position is that issuing the certificate is free of charge. If a charge is quoted to you, ask what it is for and get the answer in writing.
If you see a price quoted for the certificate, ask for its source. The only PenCom statement on the fee cited in this article is the reported notice described above.
Keep the notice's limits in mind. It is a reported notice, dated 2023, and it predates the current online application. Check PenCom's current guidance if the exact fee position matters to a decision.
Where the application is made
The application runs at pcc.pencom.gov.ng, PenCom's own portal. How to apply for a PenCom clearance certificate online walks through what the portal asks for.
Common mistakes
- Assuming "free" means contributions, penalties or premiums are waived too.
- Paying a charge without asking what it covers.
- Searching PenCom's site for a fee schedule, when the statement is a reported notice.
- Quoting the notice without its date and source.
For the rest of the certificates a tender pack asks for, see the tender compliance hub.