AI agents for business finance: what they can and can't do
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The short answer
An employer with three or more staff gets a PenCom employer code by sending a written request to PenCom through any pension fund administrator (PFA), with a letter on company letterhead, its certificate of incorporation or registration and evidence of its tax identification number. PenCom's 2023 FAQ says the code is free; with it, the employer must remit at least 18% of each employee's monthly emoluments within seven working days of paying salaries.
What the employer code is for
The employer code identifies your business in the pension system. PFAs use it to match each remittance to the right employer and to track whether an employer is paying for all its staff. Without one, your PFA cannot properly record your remittances, and you will struggle to obtain the evidence of pension compliance that many tenders and contracts ask for; see the PenCom compliance certificate.
Who needs one
PenCom's FAQ (2023 edition) says employers with at least three employees must obtain an employer code. The scheme covers private organisations with three or more staff and all tiers of government. Employers below three staff are outside the mandatory scheme, though their staff can join the Micro Pension Plan voluntarily. If you are near the line, read whether a small employer must run pension.
Documents
| Employer type | What the FAQ lists |
|---|---|
| Private employer | Letter of request on company letterhead; certificate of incorporation or registration; evidence of TIN |
| Federal MDA | Letter stating the source of funding and the OAGF Chart of Accounts number |
| State MDA | Letter from the State Pension Bureau, Board or Commission, or the Head of Service |
A business name registered with CAC can apply as well as a company: the FAQ asks for a certificate of incorporation or registration. CAMA 2020 requires a business name to be registered where you trade under a name other than your own true surname (section 814), so most sole traders with staff will hold a BN certificate.
For a private company, the TIN is the one issued after CAC registration; see getting a company TIN.
Steps
- Choose a PFA to route the request. The FAQ says any PFA can do this, and it need not be the PFA your staff use.
- Write the request on letterhead, signed by a director, giving the company name, RC or BN number, address, contact person and number of staff.
- Attach the certificate of incorporation or registration and evidence of TIN.
- Submit to the PFA, which forwards it to PenCom.
- Receive your employer code and record it in your payroll system.
- Ask each employee for their RSA PIN and PFA, and set up monthly remittance schedules for each PFA.
Your duties once registered
- Rate
- At least 18% of monthly emoluments: 10% employer, 8% employee. You may pay the whole 18% yourself.
- Deadline
- Deduct and remit within seven working days of paying salaries.
- Staff without an RSA
- If an employee has not opened an RSA six months after starting, ask a PFA to open a temporary (nominal) RSA for them.
- Late payment
- PenCom requires the overdue amount plus a penalty of at least 2% of unpaid contributions, paid into staff RSAs.
- Complaints
- Employees who are not remitted for can complain directly to PenCom, which uses recovery agents and, if needed, legal action.
Worked example
Example only: a business with five staff on total monthly emoluments of ₦1,500,000 owes at least ₦270,000 a month into their RSAs: ₦150,000 from the employer (10%) and ₦120,000 deducted from pay (8%). If salaries are paid on the last working day of the month, the remittance is due within seven working days. Paying one month's ₦270,000 late attracts at least ₦5,400 in penalty (2%) on top of the arrears.
Step-by-step monthly routines are in pension remittance steps for employers, and the rates are explained in pension contributions in Nigeria.
Mistakes employers make
- Waiting until staff number three. Growth is gradual; register when the third hire is agreed, so the first month is not late.
- Paying all staff into one PFA. Each employee chooses their PFA. Remit to each PFA against each PIN.
- Using basic salary only. The FAQ applies the rate to monthly emoluments; agree what your emoluments include and show it on payslips.
- Missing the seven-day window. Salary day starts the clock. Schedule the remittance with payroll, not at month end.
- Ignoring new joiners without an RSA. After six months the FAQ puts the onus on the employer to arrange a temporary RSA.
Keeping records
- The employer code letter or confirmation.
- A monthly schedule showing each employee, PIN, PFA, emoluments and contributions.
- Proof of each payment and the date salaries were paid, to show the seven-day rule was met.
- Copies of temporary RSA requests for staff who had not opened their own, and the date each was made.
Keep these together for each year. When a client, auditor or PenCom asks whether you are up to date, the answer is a folder, not a search through emails.
Where Pryme fits
Pryme Business Accounts come with Finance and Compliance agents built by Pryme Intelligence. They can prepare the monthly pension schedule from payroll and the remittance for each PFA; a person approves above the set ceiling, and actions are recorded. See payroll.
Questions people ask
How do I get a PenCom employer code?
Send a written request on letterhead to PenCom through any PFA, with your certificate of incorporation or registration and evidence of TIN.
How much is PenCom employer registration?
PenCom's 2023 FAQ says the employer code is free.
How many staff before pension is compulsory?
Three or more employees for private organisations, according to PenCom's FAQ.
When must employers remit pension?
Within seven working days of paying salaries, at a minimum of 18% of monthly emoluments.
Sources
- PenCom: Frequently asked questions on the Contributory Pension Scheme (2023 edition) · accessed Oct 2026
- Companies and Allied Matters Act 2020 (full text) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.