The National Pension Commission (PenCom) has disclosed that it will begin calculating penalties against defaulting employers through an automated system, following cumulative recoveries of N36.6 billion as of July 2026.
The Director-General of PenCom, Omolola Oloworaran, disclosed this on Tuesday at the 2026 Annual PenCom Media Conference in Abuja, which was attended by Nairametrics.
The development comes months after PenCom announced the recovery of unremitted pension contributions from defaulting employers in the electricity sector in collaboration with the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
PenCom frowns at unremitted deductions
Oloworaran highlighted that a deduction on a payslip that does not reach a Retirement Savings Account (RSA) constitutes a breach of trust and a violation of the law.
She described the new initiative as part of efforts to strengthen compliance with the Pension Reform Act.
- “I would also note that the new system we just implemented for PCC auto-calculates penalties. So, if you are requesting a pension plan certificate, and there are any delays in you remitting your pension until you pay your penalties, you will not be able to get your pension plan certificate,” she added.
Oloworaran maintained that some employers continue to withhold pension contributions or delay remittances despite regulatory interventions and clear guidelines.
- “But we are monitoring, and we are going after employers who are not contributing and also those who are not contributing in time as well,” she said.
- “We will find what is owed, we will recover it, and we will hold those responsible to account,” she added.
The DG further disclosed that PenCom had extended pension compliance requirements to commercial relationships involving pension operators and respective business partners.
She emphasised the need to widen coverage and deepen compliance, adding that pension benefits must grow more adequately amid the pressures many households continue to face.
PenCom and NLC target remittance defaulters
Nairametrics previously reported that PenCom and the Nigeria Labour Congress (NLC) Lagos Council commenced enforcement operations against employers who fail to remit workers’ pension contributions under the Contributory Pension Scheme (CPS), effective June 1.
The Chairperson of the NLC Lagos Council, Funmi Sesi, disclosed this after an interactive session organised by PenCom in Lagos.
PenCom’s previous pension recoveries
In August 2025, PenCom was reported to have recovered a total of N4.57 billion from defaulting employers between the first quarter of 2024 and the first quarter of 2025.
This was disclosed at the time by Oguche Agudah, Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp).
PenOp maintained that the recoveries reinforced the Commission’s commitment to protecting workers’ retirement savings under Nigeria’s Contributory Pension Scheme.
Agudah explained that the recovered sum comprised N2.12 billion in outstanding pension contributions and N2.45 billion in penalties imposed on 138 employers who failed to remit pension funds as required by law.