*Warns no hiding place for defualting amployers

By Victor Ahiuma-Young

Employers who fail to remit workers’ pension contributions are facing intensified enforcement as the National Pension Commission, PenCom, vows to recover every naira owed to Retirement Savings Accounts, RSAs, and hold defaulters accountable.

PenCom Director-General, Ms. Omolola Oloworaran, gave the warning at the 2026 PenCom Media Conference in Lagos, declaring that employers could no longer deduct pension contributions from workers’ salaries without remitting the funds to their RSAs.

She disclosed that cumulative recoveries from defaulting employers had reached N36.6 billion as of July 2026, adding that the commission had stepped up efforts to track outstanding contributions and enforce compliance with pension laws.

Describing the non-remittance of deducted contributions as a breach of trust and a violation of the law, Oloworaran said: “A deduction on a payslip that does not reach a Retirement Savings Account, RSA, is a breach of trust and a breach of the law.

“Last year, recoveries from defaulting employers broke every record in the history of the Scheme. This year, we have already surpassed that record.

Cumulative recoveries stood at N36.6 billion as at July 2026.

“We will find what is owed, we will recover it, and we will hold those responsible to account.”

She stressed that pension contributions were not mere accounting entries but workers’ accumulated retirement savings and a critical source of financial security after active employment.

 She noted that PenCom would continue to deploy its regulatory powers to ensure compliance and protect contributors’ interests.

The enforcement drive comes amid sustained growth in Nigeria’s pension industry. 

Oloworaran disclosed that pension assets rose from N20.79 trillion in July 2024 to N31.48 trillion in June 2026, representing an increase of more than N10.7 trillion in less than two years. During the same period, 938,229 Nigerians joined the Contributory Pension Scheme (CPS).

“These are the savings of workers who will depend on them in later life. And we will steward them with competence, integrity and prudence”, Oloworaran said.

She said the commission was determined to ensure that the expansion of pension assets and contributor numbers was matched by stronger employer compliance, urging businesses to treat remittances as a statutory responsibility rather than an optional obligation.

Oloworaran also spoke about said broader efforts to strengthen retirement security and deliver tangible benefits to workers and pensioners.

“We are also building for the long term. Coverage must widen. Compliance must deepen. Benefits must grow more adequately. We know the pressures many households still face, and that is precisely why every naira of retirement security matters.

“But let no one doubt the direction of travel. A retired teacher has received what she was owed. A retired nurse has seen her pension rise. A civil servant has left service with a full year’s pay in hand. A trader has opened her first pension account. And later this month, a low-income retiree will walk into a clinic without fear of the bill.”

Against this backdrop, the commission urged employers to ensure that every deduction made from workers’ salaries was promptly credited to their RSAs, warning that failure to do so could deprive employees of benefits accumulated over years of service.

She also urged workers to monitor their pension contributions and report discrepancies whenever deductions did not reflect in their accounts.

“To young Nigerians: start the conversation early. Know your Pension Fund Administrator. Read your statement. Ask where your contributions are. The retirement you will live tomorrow is being built today”, she added.