By Henry Uche
The National Pension Commission (PenCom) has declared that it will no longer tolerate delays in the remittance of the mandatory 10 percent contributory pension by employers on behalf of their employees — nor will it accommodate complacency among pension operators. According to the commission, the era of leniency is over.
Speaking in Lagos during the second quarter PenCom Press Conference, the Director-General, Omolola Oloworaran, stressed that full compliance with pension obligations is now a critical and non-negotiable requirement for all stakeholders in Nigeria’s pension industry.
“Pension contribution is a way of life. We have drawn a red line. Pension compliance is no longer optional — it is existential. Only those who value the future of their employees can participate in this ecosystem,” Oloworaran declared.
To enforce this stance, PenCom will blacklist and bar any entity that does not possess a valid Pension Compliance Certificate (PCC) from engaging in any pension-related business with licensed operators under the commission’s regulation. This directive extends to banks, investment partners, parent companies of pension firms, and shareholders affiliated with licensed pension entities. Additionally, all linked entities must enforce compliance and provide annual attestations.
Encouragingly, Oloworaran announced significant progress in clearing pension arrears, revealing that retirees under the Contributory Pension Scheme (CPS) up to March 2025 have been fully paid their pension entitlements — a major step toward eliminating the backlog of pension obligations.
“We are just a few steps away from eliminating pension arrears entirely — a historic milestone that restores credibility to the Contributory Pension Scheme,” she said, attributing this achievement to the consistent release of funds for accrued rights since November 2024, made possible by the leadership of President Bola Tinubu.
While commending the federal government’s performance regarding pension contributions, Oloworaran pointed out that State governments remain a significant challenge. She called for collective action to promote a pension system that is transparent, accountable, and efficient, noting that “a labourer is worthy of his/her wages.”
The PenCom DG further disclosed that the commission is working with relevant stakeholders to ensure that companies without active pension plans for their employees will be disqualified from bidding on government contracts and from participating in private sector business opportunities.
She also announced the upcoming launch of the Personal Pension Plan, which will expand coverage to include participants in Nigeria’s informal sector. In addition, the rollout of the new Pension Boost initiative — effective from June 2025 — is projected to raise pension assets under the CPS from N8.3 billion to N11.9 billion, spurred by robust investment performance and an updated pension enhancement template.
“We are building a pension system that is transparent, inclusive, and unshakable. We are restoring faith in retirement,” she said. Addressing employers who continue to delay pension remittances, Oloworaran issued a strong warning: “Your grace period is over. To operators who remain complacent, there will be consequences.”
PenCom reaffirmed its commitment to safeguarding the retirement future of Nigerian workers, ushering in what the DG called a new era of “accountability, fairness, and dignity in pension administration.”
“We see you, we hear you, and we are committed to protecting your future,” she assured.
Also speaking at the event, PenCom’s Head of Surveillance, Abdulrahman Muhammad (A.M.) Saleem, reported that pension industry assets grew significantly in Q1 2025, increasing by N820 billion — from N22.51 trillion in December 2024 to N23.33 trillion.
“The major reason for this growth in pension assets was additional contributions from employers and the investment income generated by the PFAs from managing the funds,” Saleem explained.
He further revealed that a total of N294.40 billion has been accessed by workers under the CPS who lost their jobs between 2004 and Q1 2025, through the provision that allows them to withdraw up to 25 percent of their pension balance. So far, approximately 538,237 retirees have benefited from this option.