…Decries rising pension defaults
The Nationwide Pension Fee (PenCom) has cumulatively recovered N32.27 billion, comprising N15.87 billion in principal contributions and N16.40 billion in penalties from defaulting employers between June 2012 and September 2025.
Newest knowledge from the pension business regulator confirmed that, PenCom recorded vital compliance good points within the third quarter 2025 alone, recovering N2.06 billion, comprising N775 million principal and N1.27 billion penalties) from 49 defaulting employers, reflecting a sustained surge in enforcement actions. .
The director basic of PenCom, Ms Omolola Oloworaran, at a Workshop for accredited Restoration Brokers held in Lagos final week, disclosed that the regulator had commenced a brand new period of zero tolerance for pension defaults with accredited Restoration Brokers serving because the cornerstone of Nigeria’s social contract with its employees.
Oloworaran, represented by the commissioner, Inspectorate of the Fee, Hon. Samuel Chigozie Uwandu, reaffirmed PenCom’s dedication to implementing strict compliance throughout the pension business.
The coaching marked a renewed nationwide compliance push to get well excellent pension contributions and penalties from employers who persistently violate the Pension Reform Act (PRA) 2014, which mandates remittance of pension contributions inside seven working days of wage fee.
The workshop, attended by enforcement officers, useful resource individuals and pension business stakeholders, outlined new strategic initiatives that can strengthen enforcement efforts, deepen inter-agency collaboration, and empower restoration brokers to sort out non-remittance of pension contributions with larger precision and authority.
Talking additional, he mentioned PenCom presently engaged Restoration Brokers to audit defaulting employers, calculate excellent pension liabilities, problem demand notices, and facilitate restoration of un-remitted pension contributions. The fee stresses that the restoration brokers’ work has been instrumental in implementing compliance because the begin of the restoration train in 2012.
Oloworaran instructed contributors on the workshop that, regardless of the successes of the Contributory Pension Scheme (CPS), persistent defaults by employers threatened the basic goal of the system.
“Each unremitted Naira represents a damaged promise to a Nigerian employee. This Fee has moved from selling voluntary compliance to mandating enforced compliance. The period of impunity is over, ” she mentioned.
She recalled that the appointment of Restoration Brokers adopted a aggressive, clear choice course of, reflecting PenCom’s confidence of their capability, professionalism, and integrity. She reminded contributors that they have been the ‘operational arm of PenCom’s enforcement will’ and have been crucial to PenCom’s technique to safeguard employees’ retirement financial savings.
The director basic outlined a number of daring initiatives forming PenCom’s expanded enforcement structure, together with stronger partnerships with key regulatory our bodies such because the Company Affairs Fee (CAC), Federal Inland Income Service (FIRS) and different related businesses.
Below these partnerships, employers’ compliance with the PRA 2014 will affect their standing with these our bodies. The DG famous that defaulting employers would face penalties past PenCom, as non-compliance may have an effect on enterprise operations, entry to authorities companies, and regulatory privileges.
PenCom DG additionally delivered to the eye of the contributors the newly executed Memorandum of Understanding (MoU) with the Impartial Corrupt Practices and Different Associated Offences Fee (ICPC), which empowers ICPC to carry the administration of recalcitrant employers personally accountable, making pension defaults a matter with potential felony implications.
“This MoU is a decisive step to offer enamel to our restoration efforts,” the DG said. “No employer ought to think about that withholding employees’ pensions is with out penalties.”
