PenCom Recovers N25.53bn Unremitted Pension Contributions from Defaulting Employers

James Emejo in Abuja

The National Pension Commission (PenCom) yesterday disclosed that it has recovered a total of N24.53 billion from 34 defaulting employers who failed to remit deducted pension contributions to their respective Pension Fund Administrators (PFAs) as required by law.

Speaking at the opening of the 2023 seminar for pensions correspondents with theme, “Transforming Service Delivery in the Pension Industry: Strategies for Improving Efficiency and Customer Satisfaction,” in Abuja, Director General, PenCom, Mrs. Aisha Dahir-Umar, said effective regulatory oversight remained pivotal in maintaining transparency, fairness, and efficiency, which are the cornerstones of the pension system.

Represented by the commission’s Head, Corporate Communications Department, Mr. Abdulqadir Dahiru, she said the recoveries were made since the commencement of the recovery exercise in June 2012 to March 2023, adding that they comprised principal contributions which stood at N12.44 billion and penalties which amounted to N12.09 billion.

He also disclosed that the commission recovered N384.28 million comprising principal contributions of N193.05 million, and penalties amounting to N191.22 million in the first quarter of the year (Q1 2023).

Umar, said the creation of the Consumer Protection Department (CPD) further underscored PenCom’s determination to prioritise service delivery and provide the Retirement Savings Account (RSA) holders with the care and attention they rightfully deserve.
She said the commission’s proactive regulatory approach had strengthened the oversight and governance of pension funds, promoting transparency, accountability, and safeguarding the interests of pension contributors.

Umar said consequently, pension assets had risen by N1.77 trillion in Q1 to N16.76 trillion at the end of June 2023 from N14.99 trillion in December 2022.
She said membership also increased by 146,920 new contributors, from 9.86 members in 2022 to over 10 million members as of June 2023.
According to the PenCom boss, the Contributory Pension Scheme has enabled both public and private sector workers to build retirement savings throughout their working lives, fostering financial security during their golden years.

She commended both the pension and finance reporters for their continuous support and partnership towards a vibrant industry, noting that their dedication and support are instrumental in advancing the commission’s mission.

 She insisted that it was a criminal and prosecutable offense for employers to withhold employees’ contributions without remitting the same to appropriate PFAs.
Umar also encouraged workers to utilise the whistle-blower window to report such practices assuring their identities would be protected.  

Also, in his presentation titled, “Improving Accessibility and Service Delivery in RSA Mortgage Financing,” the Chief Executive, Pension Fund Operators Association of Nigeria (PenOP), Mr. Oguche Aguda, said Nigeria’s housing deficit grew from seven million in 1991 to 28 million in 2023, making made it difficult for government bridge housing gap alone.

Represented by the Research and Investment Lead at PenoP, Mr. Akinbola Akintola, Aguda hinted that with the new mortgage policy of PenCom, the country would experience significant drop in the housing deficit in the coming years.