N1.58 Billion Recovered As PENCOM Enforces Contributory Pension Payments From Defaulting Employers
- The National Pension Commission is going all out to protect employees' rights to their retirement savings
- In recent enforcement moves, the commission is making employers comply and pay up their pension contributions
- Huge sums of money have been recovered so far, and PENCOM has shared plans to drive its enforcement into more states
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The National Pension Commission (PENCOM) is ramping up its enforcement efforts to recover contributions from employers.
So far, about N1.58 billion has been recovered in this renewed drive to ensure employers comply with the Contributory Pension Scheme.
The PENCOM Director-General, Omolola Oloworaran, disclosed this while speaking at the First Run 2025 Consultative Forum for States and the Federal Capital Territory, held in Kano state on Wednesday.
Source: Getty Images
According to the PENCOM boss, this is part of the moves to protect employees’ rights to retirement savings.
The PENCOM DG disclosed that the state remittances are growing, as the adoption of the Contributory Pension Scheme (CPS) spreads nationwide.
PENCOM assets rise past N23 trillion
She revealed that following the enforcement efforts, total pension assets under management have risen above N23 trillion as of February 2025.
Oloworaran, however, noted that despite the efforts put in so far, the absence of a legislative framework in some states constitutes a challenge.
News Agency of Nigeria (NAN) reports that only 25 states (including FCT Abuja) had clear laws on the implementation of the contributory pension scheme, with only eight states fully implementing the Contributory Pension Scheme.
Six other states operate hybrid pension schemes, while six others have bills that have reached advanced legislative stages.
Olowororan announced that the commission had introduced a flexible adoption model that would help other states gradually join in by first implementing the scheme with new employees and those with less than ten years of service.
PENCOM is also giving the states technical support to implement the scheme, and plan for legacy liabilities as well.
According to the PUNCH, about 23,673 disengaged workers have been able to withdraw a total of N33.43 billion from their Retirement Savings Accounts in Q3, 2024.
FG orders 20% pension increase
Recall that President Bola Tinubu recently ordered a 20% pension increase for retirees under the Defined Benefit Scheme (DBS).
This move came after the government approved the new national minimum wage of N70,000 after months of agitation from the labour unions.
Source: Getty Images
The increase also introduced a new minimum pension of N32,000 monthly for pensioners, and elicited appreciation from the Nigeria Union of Pensioners (NUP).
PENCOM introduces reforms to the pension scheme
In related news, Legit.ng reported that the National Pension Commission (PenCom) has introduced reforms to the administration of retirement benefits under the Contributory Pension Scheme (CPS).
In a circular released, PenCom grants Pension Fund Administrators (PFAs) greater autonomy in processing payments and approving retirement benefits.
The new rules eliminate the need for prior approval from PenCom when workers need to access retirement benefits.
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Source: Legit.ng
