AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Your PFA does not send you a bill: an annual asset-based fee is charged against the RSA fund your money sits in. Under PenCom circular PENCOM/TECH/ISD/2025/40, effective 1 July 2025, the total yearly fee is 2.1669% for Fund I, 1.7656% for Fund II, 1.6050% for Fund III and 1.7656% for Fund VI Active, split between the PFA, the custodian and PenCom.
How pension fees are taken
Most RSA holders never see a line called 'fee' on their statement, which is why the question comes up so often. For Funds I, II and III the charge is an asset-based fee: a yearly percentage of the money in the fund. It is taken from the fund itself rather than invoiced to you, so its effect shows up in the unit price and in the net return your PFA reports. Fund IV, the retiree fund, was set up differently: a 2018 report of PenCom's fee circular described Fund IV fees as income-based, meaning a share of investment income rather than of assets.
Three parties share the fee. The PFA manages the money and keeps your records. The PFC (pension fund custodian) holds the assets in safe keeping. PenCom takes a regulatory portion. If you are unsure which fund you are in, read RSA Fund I to Fund VI explained first, because the rate depends on the fund.
The rates from 1 July 2025
PenCom issued circular PENCOM/TECH/ISD/2025/40 on 28 July 2025, adjusting the fees for Funds I, II, III and VI Active with effect from 1 July 2025. A small slice of the PFA share is earmarked for a new Pension Industry Health Initiative (PIHI) fund, which PFAs hold until PenCom finalises how it will be used. The yearly rates are:
| Fund | PFA (incl. PIHI) | Custodian (PFC) | PenCom | Total per year | Before July 2025 |
|---|---|---|---|---|---|
| Fund I | 1.5568% | 0.3142% | 0.2959% | 2.1669% | 2.0250% |
| Fund II | 1.2462% | 0.2616% | 0.2578% | 1.7656% | 1.6500% |
| Fund III | 1.1420% | 0.2355% | 0.2275% | 1.6050% | 1.5000% |
| Fund VI Active | 1.2462% | 0.2616% | 0.2578% | 1.7656% | 1.6500% |
Two newer funds have their own rates under circular PENCOM/TECH/ISD/2026/21 of 5 March 2026, which took immediate effect:
- Fund V (Personal Pension Plan, conservative and growth): 2.40% management, 0.40% custody, 0.20% regulatory, 3.00% in total.
- Fund VII (foreign currency pension contributions): 1.20% management, 0.35% custody, 0.15% regulatory, 1.70% in total.
- No fee is charged on Fund V while its unit price is below ₦1, or on Fund VII while its price is below US$1.
Worked example: what Fund II costs in a year
Example only. Suppose your RSA averages ₦5,000,000 in Fund II across a year and the rates above apply all year.
| Share | Rate | Amount |
|---|---|---|
| PFA (incl. PIHI) | 1.2462% | ₦62,310 |
| Custodian | 0.2616% | ₦13,080 |
| PenCom | 0.2578% | ₦12,890 |
| Total | 1.7656% | ₦88,280 |
At the pre-July 2025 Fund II rate of 1.65%, the same balance would have carried ₦82,500, so the adjustment adds ₦5,780 a year on this example. In Fund I the same ₦5,000,000 would carry ₦108,345 at 2.1669%. The fee grows with your balance, so the naira cost rises every year that contributions and returns build up.
A gap of about 0.56 percentage points between Fund I (2.1669%) and Fund III (1.6050%) looks small on paper, but it is charged every year on the whole balance for as long as you stay in that fund. That is one reason to choose a fund on purpose rather than by default, and to weigh the higher fee on Fund I against what you expect it to earn.
Other charges you may meet
- Accredited Pension Agents (APAs). Under the March 2026 circular, an RSA holder who uses an APA platform for the Personal Pension Plan pays ₦20 per contribution and ₦100 per withdrawal processed through it.
- Second transfer in a year. Moving your RSA to another PFA is free once in 365 days; a second request within a year is charged. See how to switch your PFA.
- Extra fund switches. When the multi-fund structure began in 2018, the first switch between funds in a year was free and later switches were charged at rates PenCom sets. Ask your PFA whether that still applies before you switch twice.
- Older flat charges. Some older guides mention a flat monthly administration charge. The current circulars set percentage fees for each fund; if your statement shows any flat deduction, ask your PFA in writing which PenCom rule it relies on.
What to check first
- Confirm which fund you are in on your latest statement or PFA app.
- Compare the unit price or return your PFA publishes with the fee table above: a published return is generally after fees, so ask your PFA to confirm.
- Look for any deduction that is not a percentage of the fund and ask for its basis.
- If a charge looks wrong and your PFA does not resolve it, use the route in how to complain about your PFA or employer to PenCom.
Where Pryme fits
Pension fees are set by PenCom, not by you, so the lever you control is how much you put aside outside the RSA. Pryme's Savings Boxes are Naira savings held with Solid Allianze MFB; the rate for each Box is shown in the app before you commit, alongside how your money is used. They sit beside your pension, not in place of it.
Questions people ask
How much does my PFA charge on my RSA?
For Fund II the total yearly asset-based fee from 1 July 2025 is 1.7656% of the fund, of which 1.2462% goes to the PFA. Fund I is 2.1669% and Fund III 1.6050%, per PenCom circular PENCOM/TECH/ISD/2025/40.
Why can I not see PFA fees on my RSA statement?
Because the fee is charged against the fund's assets, it is reflected in the unit price and net return rather than shown as a separate debit. Ask your PFA for the fund's gross and net return if you want to see the difference.
Is there a fee for switching PFA?
A transfer is free once every 365 days. A second transfer request within a year attracts a charge.
Who decides pension fees in Nigeria?
PenCom sets the maximum fees by circular and regulation; PFAs cannot simply set their own rates. The latest adjustment for Funds I, II, III and VI Active took effect on 1 July 2025.
Sources
- PenCom circular PENCOM/TECH/ISD/2025/40, Adjustment of fees structure in the pension industry (28 Jul 2025; copy hosted by Trustfund Pensions) · accessed Oct 2026
- PenCom circular PENCOM/TECH/ISD/2026/21 on Fund V, Fund VII and APA fees (5 Mar 2026) · accessed Oct 2026
- Nairametrics, PenCom rolls out revised industry fee structure (22 Jun 2018) · accessed Oct 2026
- Vanguard, What you need to know about the new RSA multi-fund structure (11 Jul 2018) · accessed Oct 2026
- FCMB Pensions, The RSA transfer window: things you should know (PDF) · 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.