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…As crackdown on defaulting employers deepens
From Bimbola Oyesola
The Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the National Pension Commission (PenCom) have recovered more than ₦3 billion in unremitted pension contributions from defaulting employers as part of an intensified enforcement drive to protect the retirement savings of Nigerian workers.
The recovery, according to PenCom, was achieved through a joint enforcement initiative between the Commission and the anti-corruption agency aimed at tackling persistent pension contribution defaults and ensuring strict compliance with the provisions of the Pension Reform Act (PRA) 2014.
In a statement issued by the National Pension Commission, the recovered funds were traced to employers operating in the electricity sector who had deducted pension contributions from employees but failed to remit them into their Retirement Savings Accounts (RSAs) as required by law.
PenCom disclosed that the entire recovered amount has now been credited into the respective Retirement Savings Accounts of the affected employees, bringing relief to workers whose retirement savings had been withheld by their employers.
The Commission described the recovery as a major milestone in the ongoing efforts to safeguard workers’ pensions, saying it underscores the effectiveness of the strategic partnership between PenCom and ICPC in enforcing compliance with pension regulations.
According to the Commission, “The recovered funds, obtained from defaulting employers in the electricity sector, have been fully remitted into the respective Retirement Savings Accounts (RSAs) of affected employees in accordance with the provisions of the Pension Reform Act (PRA) 2014.”
PenCom further stated that the successful recovery validates the collaborative framework established between both agencies to ensure employers fulfil their statutory obligations under the Contributory Pension Scheme (CPS).
The Commission recalled that it signed a Memorandum of Understanding (MoU) with the ICPC in October 2025 to strengthen cooperation in the recovery of unremitted pension contributions, investigation of pension-related infractions, and enforcement of compliance with the Pension Reform Act 2014.
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It explained that the partnership has significantly enhanced the capacity of both institutions to identify erring employers, investigate pension-related offences, and compel compliance with existing pension laws.
PenCom also revealed that the ICPC is currently investigating several private sector employers referred by the Commission over alleged violations of the Pension Reform Act, adding that more recoveries are expected as ongoing investigations are concluded.
The Commission expressed optimism that the continuing collaboration between both agencies would lead to increased compliance across both public and private sector organisations while deterring employers from diverting or withholding employees’ pension contributions.
Under the provisions of the Pension Reform Act 2014, employers are required to deduct and remit pension contributions into employees’ Retirement Savings Accounts within seven working days after payment of salaries. Failure to comply with this statutory obligation constitutes a breach of the law and attracts sanctions.
PenCom noted that such sanctions include the recovery of outstanding pension contributions, payment of accrued penalties, and, where necessary, criminal prosecution of defaulting employers in line with the law.
The Commission therefore urged employers, particularly those operating in the private sector, to immediately regularise all outstanding pension remittances and ensure full compliance with the Pension Reform Act to avoid regulatory sanctions and enforcement actions.
Reaffirming its commitment to protecting workers’ retirement benefits, PenCom stressed that it would continue working closely with the ICPC and other relevant agencies to strengthen compliance with the Contributory Pension Scheme.
The Commission maintained that pension contributions deducted from employees’ salaries are held in trust for workers and must be remitted promptly into their Retirement Savings Accounts to guarantee their financial security after retirement.
