PenCom hunts pension defaulters, recovers over N3bn for workers

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By Victor Ahiuma-Young

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The National Pension Commission, PenCom, has intensified its crackdown on employers that fail to remit workers’ pension contributions. As part of a major enforcement exercise carried out in collaboration with the Independent Corrupt Practices and Other Related Offences Commission, ICPC, the commission recovered more than ¦ 3 billion from defaulting firms in the electricity sector.

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The recovered funds have been credited into the Retirement Savings Accounts, RSAs, of affected employees in accordance with the provisions of the Pension Reform Act, PRA, 2014, PenCom.

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The commission described the recovery as a significant milestone in its ongoing enforcement drive against pension defaulters, noting that the feat demonstrates the effectiveness of its partnership with the ICPC in ensuring compliance with the PRA 2014 and protecting workers’ retirement savings.

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According to PenCom, the collaboration was formalised through a Memorandum of Understanding, MoU, signed with the anti-graft agency in October 2025 to establish a framework for recovering unremitted pension contributions, investigating pension-related infractions and enforcing compliance with the law.

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The commission disclosed that the ICPC is currently investigating several private sector employers referred by PenCom over alleged violations of the PRA 2014, expressing confidence that additional recoveries would be made as the investigations progress.

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Under the Pension Reform Act 2014, employers are required to deduct and remit pension contributions into employees’ RSAs within seven working days after salaries are paid. Failure to comply attracts sanctions, including the recovery of outstanding contributions, penalties and, where necessary, prosecution.

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PenCom urged employers, particularly those in the private sector, to regularise outstanding pension remittances and comply fully with the provisions of the law to avoid regulatory and enforcement actions.

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The commission reaffirmed its commitment to safeguarding workers’ retirement savings, promoting compliance with the Contributory Pension Scheme, CPS, and ensuring that pension contributions deducted from employees’ salaries are remitted promptly into their Retirement Savings Accounts.

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