Pension Commission Recovers N32.2bn From Defaulting Employers

…Decries rising pension defaults

The National Pension Commission (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.

Latest data from the pension industry regulator showed that, PenCom recorded significant compliance gains in 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 activities. .

The director general of PenCom, Ms Omolola Oloworaran, at a Workshop for accredited Recovery Agents held in Lagos last week, disclosed that the regulator had commenced a new era of zero tolerance for pension defaults with accredited Recovery Agents serving as the cornerstone of Nigeria’s social contract with its workers.

Oloworaran, represented by the commissioner, Inspectorate of the Commission, Hon. Samuel Chigozie Uwandu, reaffirmed PenCom’s commitment to enforcing strict compliance across the pension industry.

The training marked a renewed nationwide compliance push to recover outstanding pension contributions and penalties from employers who persistently violate the Pension Reform Act (PRA) 2014, which mandates remittance of pension contributions within seven working days of salary payment.

The workshop, attended by enforcement officers, resource persons and pension industry stakeholders, outlined new strategic initiatives that will strengthen enforcement efforts, deepen inter-agency collaboration, and empower recovery agents to tackle non-remittance of pension contributions with greater precision and authority.

Speaking further, he said PenCom currently engaged Recovery Agents to audit defaulting employers, calculate outstanding pension liabilities, issue demand notices, and facilitate recovery of un-remitted pension contributions. The commission stresses that the recovery agents’ work has been instrumental in enforcing compliance since the start of the recovery exercise in 2012.

Oloworaran told participants at the workshop that, despite the successes of the Contributory Pension Scheme (CPS), persistent defaults by employers threatened  the fundamental purpose of the system.

“Every unremitted Naira represents a broken promise to a Nigerian worker. This Commission has moved from promoting voluntary compliance to mandating enforced compliance. The era of impunity is over, ” she said.

She recalled that the appointment of Recovery Agents followed a competitive, transparent selection process, reflecting PenCom’s confidence in their capacity, professionalism, and integrity. She reminded participants that they were the ‘operational arm of PenCom’s enforcement will’ and were critical to PenCom’s strategy to safeguard workers’ retirement savings.

The director general outlined several bold initiatives forming PenCom’s expanded enforcement architecture, including  stronger partnerships with key regulatory bodies such as the Corporate Affairs Commission (CAC), Federal Inland Revenue Service (FIRS) and other relevant agencies.

Under these partnerships, employers’ compliance with the PRA 2014 will influence their standing with these bodies. The DG noted that defaulting employers would face consequences beyond PenCom, as non-compliance might  affect business operations, access to government services, and regulatory privileges.

PenCom DG also brought to the attention of the participants the newly executed Memorandum of Understanding (MoU) with the Independent Corrupt Practices and Other Related Offences Commission (ICPC), which empowers ICPC to hold the management of recalcitrant employers personally accountable, making pension defaults a matter with potential criminal implications.

“This MoU is a decisive step to give teeth to our recovery efforts,” the DG stated. “No employer should imagine that withholding workers’ pensions is without consequences.”