Business Briefings
PenCom, NLC Target Pension Defaulters
The National Pension Commission and the Nigeria Labour Congress Lagos Council have announced plans to begin enforcement operations against employers failing to remit workers’ pension contributions under the Contributory Pension Scheme from June 1, 2026.
The move follows growing complaints from workers across public and private establishments over persistent pension deduction violations and non-remittance of contributions to Pension Fund Administrators.
Chairperson of the NLC Lagos Council, Funmi Sesi, disclosed the planned enforcement after an interactive session organised by PenCom in Lagos to educate labour leaders on compliance obligations under the Pension Reform Act.
Sesi condemned the continued practice of deducting pension contributions from workers’ salaries without remitting them to the appropriate pension accounts, describing it as a serious abuse of workers’ rights and trust.
“It is unacceptable that in spite of monthly deductions from workers’ salaries, some employers deliberately fail to remit the funds,” she said.
“The non-remittance of pension contributions constitutes a gross violation of labour laws and abuse of workers’ trust,” she added.
She warned that the labour union would intensify monitoring activities and mobilise affiliate unions against organisations found violating pension regulations.
“If we need to purchase locks and keys just to ensure compliance and enforcement, we will apply that. We are the voice for the voiceless, the power for workers and the last hope of workers and pensioners,” Sesi stated.
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According to the NLC, the increasing number of complaints from workers informed the decision to partner with PenCom on compliance monitoring and enforcement operations across Lagos State.
Labour leaders stressed that pension contributions remain a statutory entitlement protected under the Contributory Pension Scheme established to guarantee financial security for workers after retirement.
The Contributory Pension Scheme was introduced to address delays and irregularities associated with the old pension structure while ensuring sustainable retirement benefits for employees in both public and private sectors.
PenCom Director-General, Omolola Oloworaran, also warned employers against withholding pension deductions, emphasizing that such actions violate provisions of the Pension Reform Act.
Represented by the Head of Compliance and Enforcement Department, Ahmed Lawan, the PenCom chief said the scheme was designed to secure the financial future of workers after retirement.
She acknowledged that although the pension system has improved retirement administration in Nigeria, some employers continue to undermine the process through non-remittance of workers’ deductions.
“Deducting workers’ pension contributions without remitting them is a criminal offence under the pension law,” she warned.
PenCom said joint compliance exercises with the NLC will commence in June, with enforcement teams expected to monitor organisations suspected of violating pension remittance obligations.
The Commission also encouraged workers to report defaulting employers through the NLC and assured whistleblowers of confidentiality during investigations and enforcement procedures.
Industry stakeholders said the planned enforcement could improve compliance levels across Lagos, especially among employers with outstanding pension liabilities.
They noted that stricter enforcement measures are expected to strengthen confidence in the Contributory Pension Scheme and protect workers from losing retirement savings due to employer misconduct.
PenCom maintained that employers must comply fully with pension regulations to safeguard workers’ welfare and sustain confidence in Nigeria’s pension administration system.
