Nigerian PFA pension guide
Overview
ABBPay applies Nigeria's Contributory Pension Scheme in every pay run. It enforces the statutory minimum rates, tracks each employee's Pension Fund Administrator (PFA) and RSA PIN, and produces a remittance schedule grouped by PFA.
This guide is for Nigerian employers.
Before you start
- You have access to Payroll > Pensions for your Nigerian company.
- Each employee has chosen a PFA and has an RSA PIN. Employees without an RSA PIN are treated as not enrolled and have no pension deducted.
Setting up a scheme
Go to Settings > Pension Schemes and add a scheme with:
- a name and code, and the PFA
- employee and employer rates (at least 8% for the employee and 10% for the employer)
- optional voluntary rates and an optional earnings cap
- default and active switches
Employee details
On each employee's record, choose the PFA from the list of licensed PFAs and enter their RSA PIN.
Pension hub
Payroll > Pensions shows the enrolment summary (total employees, with an RSA PIN, assigned to a scheme, opted out, no PFA), headcount per PFA and the last five completed pay runs with their remittance file links. Use bulk enrol to put every employee who has an RSA PIN but no scheme into a scheme.
How contributions are calculated
- Pensionable earnings are Basic + Housing + Transport, plus any allowance flagged as pensionable. If no components are set, gross pay is used. The scheme cap applies.
- Statutory rates are 8% employee and 10% employer, adjustable per company or scheme.
- The employee's pension is deducted before PAYE, together with NHF and NHIS.
- Voluntary contributions are supported and shown separately.
Exemptions and opt-outs
An employee can only be exempt with a recorded legal reason: armed forces or security, a constitutional office pension, the 2004 retirement window, a retiree already drawing a pension, or an employer with fewer than three employees. An opt-out with no reason is ignored and the pension is still deducted. Employees aged 60 or over are flagged for your attention.
After each pay run
- Complete the pay run.
- Download the remittance schedule from the pay run, the pay run's pension tab or the pension hub. Choose one file for all PFAs or one file per PFA.
- Pay each PFA and send them the schedule.
The CSV lists serial number, name, RSA PIN, PFA, pensionable earnings, employee, employer, voluntary employee, voluntary employer and total, with totals per PFA and overall.
Reports
The Pension Contribution Schedule report can be exported to CSV. The pension line also appears in the government payroll (IPPIS) export.
Reminders
A monthly compliance reminder prompts you to remit pension contributions. Check the due date shown in the reminder.
Employee self-service
Employees can open My Pension in the employee portal to see their PFA, RSA PIN and the employee, employer and total amounts for their last 12 pay runs.
Tips and FAQ
Why is an employee not being deducted? Check they have an RSA PIN and are assigned to a scheme.
Can I submit directly to the PFA? No. Download the CSV and send it.