The President of the Nigeria Labour Congress (NLC), Comrade Joe Ajaero, has called on the National Pension Commission (PenCom) to enforce stricter penalties on employers defaulting on pension remittances, warning that persistent non-compliance threatens the integrity of Nigeria’s pension system.
Ajaero made the call on Thursday during a Roundtable Discussion between the NLC leadership and PenCom management held in Abuja, which was attended by Nairametrics.
He noted that the NLC continues to receive widespread complaints from workers about the inefficiency of some Pension Fund Administrators (PFAs) and the continued failure of several employers, both in the public and private sectors—to remit pension deductions as required by law.
“PenCom must consider publishing the names of non-compliant employers and imposing stiffer sanctions to serve as a deterrent,” Ajaero said.
NLC’s Recommendations to PenCom
The NLC President commended PenCom’s Director-General, Mrs Omolola Oloworaran, and her team for initiating the engagement, describing it as a step towards strengthening collaboration for the welfare of Nigerian workers.
Ajaero emphasised the need to address existing challenges within the Contributory Pension Scheme (CPS) and enhance its efficiency, transparency, and accountability.
He expressed concern over the non-inauguration of PenCom’s full board, noting that while a chairman is in place, the absence of a fully constituted board hampers governance and slows down critical decision-making processes.
“We urge the Commission to engage the relevant authorities to ensure the immediate inauguration of PenCom’s full board. This is crucial to promoting transparency, accountability, and effective oversight,” Ajaero said.
He further proposed the establishment of a joint standing committee comprising representatives from both the NLC and PenCom to proactively address emerging pension issues and provide a rapid-response mechanism for workers’ grievances.
“Such a committee will deepen collaboration and enhance mutual understanding between labour and the Commission,” he added.
In her response, PenCom Director-General, Mrs Omolola Oloworaran, reaffirmed the Commission’s commitment to protecting workers’ retirement savings, describing the CPS as one of Nigeria’s most transformative social security reforms.
“Despite its challenges, the Contributory Pension Scheme has restored confidence in the dignity of labour by ensuring that every worker’s effort translates into retirement security,” Oloworaran stated.
She commended the NLC for its sustained advocacy and urged the labour movement to continue engaging constructively on key policy reforms, including the Revised Regulation on the Investment of Pension Fund Assets and the proposed amendments to the Pension Reform Act 2014, currently under legislative review.
According to her, PenCom will intensify efforts to ensure full compliance with the Pension Reform Act among private-sector employers and state governments, while improving benefits administration and ensuring timely payment of entitlements.
The NLC’s renewed demand comes weeks after PenCom disclosed the recovery of ₦4.57 billion from defaulting employers between the first quarter of 2024 and the first quarter of 2025.
According to Mr Oguche Agudah, Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), the recovered funds comprised ₦2.12 billion in outstanding pension contributions and ₦2.45 billion in penalties imposed on 138 employers who failed to remit workers’ pension funds.
The recovery exercise, PenCom said, underscores its ongoing commitment to protecting workers’ retirement benefits and strengthening compliance within Nigeria’s pension ecosystem.
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