PenCom makes BVN mandatory for Retirement Savings Account registration from Feb 1

The National Pension Commission (PenCom) has directed the provision of Bank Verification Numbers (BVN) for all Retirement Savings Account (RSA) registration and data recapture processes, effective from February 1. The move is part of the commission’s process to strengthen the pension database’s security and integrity. 

In a circular signed by the PenCom Head, Surveillance Department, A.M. Saleem, the commission directed that BVN must be mandated for processing new RSA registrations and recapturing data of existing RSA holders.

“The National Pension Commission hereby directs that 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, as applicable,” the circular reads.

The directive explained that PFAs are to verify their BVNs and update their registration and data recapture forms to include a mandatory Bank Verification Number field.

“PFAs must ensure that the BVN provided for RSA Registration and Data Recapture is 11 digits. BVN must be provided for all new RSA registrations. PFAs must indicate that the BVN field on their RSA registration forms is mandatory. PFAs must obtain the BVN of RSA holders at the point of their data recapture. Consequently, PFAs must indicate the BVN field on their Data Recapture Forms is mandatory,” the circular expressed.

The circular also added that PFAs will be allowed to update the BVN records of existing RSA holders already on the Enhanced Contributor Registration System (ECRS). 

The commission also issued a fresh procedure to address PFA complaints regarding the challenges of obtaining letters of employment from new employees. With the amendment of Section 4.1.2 of the Revised Guideline on RSA Registration of 2024, formal sector employees can now register with staff identity cards in the absence of their Letter of Employment, Attestation Letter, or Letter of First Appointment.

Additional requirements include a National Identity Card or Enrolment Slip issued by the National Identity Management Commission, indicating the employee’s National Identification Number (NIN).

A PFA is a company licensed by the National Pension Commission to manage and invest the pension funds in the employee’s Retirement Savings Account (RSA). Some PFA in Nigeria are Access Pensions Limited, Fidelity Pensions Managers Limited, FCMB Pensions Limited, Guaranty Trust Pensions Limited and many more. 

Increased BVN enrollment

Amidst PenCom’s directive mandating BVN as part of Retirement Savings Account (RSA) registration, BVN’s enrollment looks to welcome a new set of additions. 

Bank Verification Number (BVN), a unique number that allows individual accounts to be verified across the Nigerian banking industry, witnessed an increase in its enrollment by bank account owners to a total of 64.8 million in January.

The latest data released by the Nigeria Inter-Bank Settlement System (NIBSS), indicated that about 800,000 account owners have registered for the Bank Verification Number between December last year and January this year. Its previous data showed that the enrollment database stood at 64 million in November 2024.

Meanwhile, the amount of active bank accounts in the country shows that there is still a very wide gap between the number of accounts and the number of BVN. 

Even though it has been made a compulsory requirement for opening an account, the gap is still evident. NIBSS data shows that the number of active bank accounts in Nigeria stood at 231.1 million as of July 2024. However, experts have pointed out that the difference might not be much as multiple accounts can be linked to a single BVN. 

Also in its effort to promote a credible financial institution, the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso announced that NIBSS would launch a non-resident BVN platform to enable Nigerians in the diaspora to operate their local bank accounts.

While making the statement in October, he highlighted that it will help these individuals run their businesses, and sort out KYC issues with financial institutions from anywhere in the world. The Apex Bank boss added that the initiative is part of efforts to ensure that Nigerians irrespective of their location anywhere in the world can participate in the Nigerian economy without any hassles and diversify their businesses.

However, till now, the initiative has not been officially launched despite the timeline of December 2024 given by the CBN Governor.

Also Read: 79,518 prisoners in Nigeria to get NIN as NIMC licenses correctional services to enroll inmates.