By Rosemary Iwunze
The Nationwide Pension Fee, PenCom mentioned that recoveries from employers that default in remitting pension contributions of their staff, rose by 503.7 per cent to N972.12 million in Q1’25 from N161.03 million recovered in This fall’24.
The Fee additionally disclosed that the defaulting employers coughed out N381.88 million as penalties for default in Q1’25. This represents a 54.6 per cent improve from N246.94 million paid as penalties in This fall’24.
The Pension Fund Operators Affiliation of Nigeria, PenOp, made the disclosure within the report on restoration of excellent pension contributions and penalties from defaulting employers.
Additional evaluate of the report exhibits that in Q3’ 24, N106.87 million was recovered from defaulting employers whereas penalties of N165.63 million had been paid as penalties.
In Q2’24, N125.57 was recovered from defaulting employers whereas N210.68 was paid as penalties. In Q1’24, N751.51 million was recovered from defaulting employers whereas N1.44 billion was paid as penalties.
Commenting on the report, PenOp said: “During the last 5 quarters (Q1’2024-Q1’2025), PenCom’s enforcement has delivered regular recoveries from defaulting employers. The best complete restoration occurred in Q1 2024, when N751.51 million in excellent contributions and N1.44 billion in penalties had been recouped. Exercise dipped by mid-2024, ticked up in This fall, after which rebounded strongly in Q1 2025 with N972.12 million in contributions and N381.88 million in penalties recovered from 19 employers. That blend issues.Whereas Q1 2025 wasn’t the best quarter total, it posted the strongest principal (contribution) restoration of the interval and the best common haul per employer about N71 million versus roughly N63 million in Q1 2024 suggesting bigger, extra materials circumstances had been tackled even because the variety of defaulters fell.
“Throughout the 5 quarters, recoveries summed to about N2.12 billion in contributions and N2.45 billion in penalties from 138 defaulting employers, proof that enforcement continues to safeguard staff’ retirement financial savings.
“The sample additionally highlights what’s subsequent: transfer from episodic crackdowns to sturdy prevention by tightening real-time remittance monitoring, escalating sanctions for persistent defaulters, and deepening employer training to scale back repeat offenses. The aim isn’t simply massive restoration headlines; its fewer defaults, quicker remittances, and a stronger, extra predictable Contributory Pension Scheme.
“It’s critical that staff know their rights. All employers partaking three or extra employees are required by regulation to remit pensions on behalf of their staff.
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