By Sola Alabadan

The National Pension Commission (PenCom) has barred all Licensed Pension Fund Operators (LPFOs), comprising Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) from transacting with service providers and vendors that do not remit pensions for their employees as evidenced by a Pension Clearance Certificate issued by the commission.
The pension operators have been given a grace period of six months to comply with this new directive aimed at expanding coverage of the Contributory Pension Scheme (CPS) in Nigeria,
Section 2 of the Pension Reform Act 2014 mandates all employers in the public and private sectors, including Federal, State, and Local Governments, to participate in the Contributory Pension Scheme and remit pension contributions no later than seven working days after salary payments.
However, PenCom lamented that in spite of the continuous engagement and enforcement measures, a significant number of employers remain non-compliant with this legal obligation.
This development made PenCom intensified its regulatory actions by appointing Recovery Agents to audit defaulters, recover outstanding contributions, and enforce sanctions.

To further strengthen enforcement, improve compliance, and broaden pension coverage, the commission directed all pension operators to ensure that any vendor or service provider they engage presents a valid Pension Clearance Certificate (PCC) issued by the Commission as a condition for entering into or renewing Service Level or Technical Agreements.

The pension operators are also mandated to ensure that investments are made only with companies and financial institutions that require PCCs from their own vendors and service providers.

Every Counterparty is required to execute a Compliance Attestation, confirming that it enforces the PCC requirement across its vendor network, and this attestation must be updated annually and included in the pension operator’s investment documentation.

Besides, counterparties are to submit valid PCCs from their own vendors/service providers before engaging in any investment transaction with the pension operators, including those involving commercial papers, bond issuances, and bank placements.

PenCom further directed the pension operators to integrate these requirements into their internal policies, vendor selection processes, due diligence procedures, governance, and investment risk assessment frameworks.

Based on the new directive, the Parent Companies, Subsidiaries, Holding Companies and Institutional Shareholders of pension operators are required to possess valid Pension Clearance Certificate and ensure that every vendor and service provider engaged by them complies with the requirement of the PCC as a precondition for entering into any Service Level or Technical Agreement. The requirement for compliance attestation is also applicable to the categories.

Sanlam and Allianz have sparked speculation in Nigeria’s insurance industry following a wave of coordinated digital communication activities indicating an imminent completion of the expected merger of the operations in Africa’s largest economy.
The firms, which have already merged operations in 27 African countries, including Ghana and Rwanda, under the SanlamAllianz banner, are now widely believed to be ramping up their alliance in Nigeria as the next significant step in their partnership.
Recent posts on both companies’ digital platforms featuring their logos side-by-side and joint thematic messaging have drawn attention across financial and business circles. The coordinated activity mirrors pre-merger patterns observed in other African markets where their collaboration was subsequently formalised.
In 2022, Sanlam and Allianz announced the formation of a strategic joint venture covering 27 African markets. The move was intended to combine Sanlam’s local market depth with Allianz’s global scale and technical expertise, creating a formidable pan-African financial services entity with ambitions to lead in life and general insurance, asset management, and health insurance.
The partnership has taken concrete shape in countries like Ghana, where existing operations have been unified and rebranded under the SanlamAllianz name. The goal has been to offer more relevant, inclusive, and tech-forward financial solutions for individuals and businesses in these markets.
Nigeria is the continent’s most populous nation and its largest economy, yet despite recent progress, its insurance penetration remains under 1%. In 2023, the industry crossed the ₦1 trillion gross written premium mark for the first time, indicating untapped potential and growing consumer interest in financial protection.
Given these dynamics, analysts say Nigeria is a natural next step in the SanlamAllianz expansion journey. The presence of both logos in coordinated messaging has been read as a signal of intent. Both brands already operate in Nigeria, and a merger of local operations would represent a formidable alliance and substantial consolidation.
Market observers believe such a move could raise the bar in Nigeria’s insurance industry, fostering more robust competition, improved product design, and greater consumer trust in formal financial services. It would also align with both firms’ broader objective of promoting financial inclusion and building long-term resilience across African economies.
At a time when several global brands are reassessing their African strategies, Sanlam and Allianz’s continued commitment affirms their vote of confidence in Nigeria’s long-term prospects. This potential merger could not only reshape the insurance landscape but will also evidently become a significant catalyst and signal to the global investment community that Nigeria remains a viable and valuable market.