PenCom Deploys Automated System to Pursue N36.6 Billion in Unremitted Pension Contributions
Nigeria’s National Pension Commission (PenCom) is set to intensify its enforcement against employers defaulting on pension remittances, announcing the deployment of an automated system for penalty calculation. This move follows substantial recoveries totalling N36.6 billion as of July 2026, underscoring the commission’s commitment to safeguarding retirement savings under the Contributory Pension Scheme (CPS).
The Director-General of PenCom, Omolola Oloworaran, revealed this strategic shift at the 2026 Annual PenCom Media Conference in Abuja. She emphasised that any pension deduction from an employee’s payslip that is not remitted to a Retirement Savings Account (RSA) constitutes a serious breach of trust and a violation of the Pension Reform Act. This new automated system, integrated into the Pension Compliance Certificate (PCC) process, will automatically calculate penalties for any delays in remittance. Employers seeking a PCC will now face an inability to obtain the certificate until all outstanding penalties are settled.
PenCom’s proactive stance addresses persistent non-compliance, where some employers continue to withhold or delay the remittance of pension contributions despite clear regulatory directives and interventions. Oloworaran affirmed that the commission is actively monitoring and pursuing employers who are either not contributing or are remitting contributions late. “We will find what is owed, we will recover it, and we will hold those responsible to account,” she stated, signalling a rigorous approach to accountability.
This initiative extends PenCom’s compliance reach to commercial relationships involving pension operators and their business partners, aiming to broaden coverage and deepen adherence to pension regulations. The commission highlighted the critical need for pension benefits to grow adequately, especially given the ongoing economic pressures faced by many households.
This intensified enforcement follows previous collaborative efforts. Notably, PenCom and the Nigeria Labour Congress (NLC) Lagos Council commenced joint enforcement operations against remittance defaulters in June 2026. Furthermore, PenCom reported in August 2025 the recovery of N4.57 billion from defaulting employers between Q1 2024 and Q1 2025. This sum comprised N2.12 billion in outstanding contributions and N2.45 billion in penalties levied against 138 employers, as detailed by Oguche Agudah, CEO of the Pension Fund Operators Association of Nigeria (PenOp). These recoveries reinforce PenCom’s dedication to protecting workers’ retirement funds.
