By Emmanuella Opara | October 14th 2026
KEY POINTS
- -The National Pension Commission (PenCom) has introduced an automated system for calculating penalties on delayed pension contributions.
- Employers with unpaid penalties will be unable to obtain Pension Clearance Certificates (PCCs) until they settle their liabilities.
- PenCom disclosed that recoveries from defaulting employers reached N36.6bn as of July 2026.
- Pension fund operators are prohibited from investing in companies that fail to remit pension contributions for their workers.
- Two additional states began making pension contributions in 2026 but have yet to meet all requirements for full implementation of the scheme.
MAIN STORY
The National Pension Commission (PenCom) has introduced an automated system for calculating penalties on delayed pension contributions, tightening enforcement against employers who fail to remit workers’ retirement savings on time.
The system links the settlement of outstanding penalties to the issuance of Pension Clearance Certificates (PCCs), which employers may need to demonstrate compliance with pension regulations when seeking government contracts and other business opportunities.
Director-General of PenCom, Omolola Oloworaran, disclosed the development on Tuesday at the commission’s 2026 Annual PenCom Media Conference in Abuja.
“I would also note that the new system we just implemented for PCC, the system 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,” Oloworaran said.
She explained that the measure was intended to ensure employers fulfil their obligations under the Contributory Pension Scheme.
Although penalties for late remittances already exist under pension legislation, the automated process strengthens enforcement by making the settlement of outstanding liabilities a condition for obtaining clearance certificates.
Oloworaran acknowledged that some employers continued to withhold pension contributions or delay payments despite regulatory interventions.
“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.
PenCom has also extended pension compliance requirements to commercial relationships involving pension fund operators and their business partners.
Oloworaran cited First Bank, United Bank for Africa, Guaranty Trust Bank, Access Bank and Zenith Bank as examples of major financial institutions with affiliations in the pension industry that could support enforcement efforts.
According to her, pension fund operators are barred from investing in companies that fail to remit pension contributions for their employees. The restrictions cover investment placements and other financial transactions involving non-compliant organisations.
To recover outstanding contributions, the commission has engaged recovery agents to examine employers’ records, establish unpaid liabilities and facilitate the collection of funds owed to workers.
PenCom’s cumulative recoveries from defaulting employers stood at N36.6bn as of July 2026. Oloworaran added that recoveries recorded during the year had already exceeded the previous annual record.
“A deduction on a payslip that does not reach a Retirement Savings Account is a breach of trust and a breach of the law,” she said.
“We will find what is owed, we will recover it, and we will hold those responsible to account,” she added.
On compliance by state governments, Oloworaran disclosed that two additional states had commenced pension contributions in 2026. However, the states had yet to fulfil all the requirements for full implementation of the scheme.
She said the commission was engaging state governments to improve compliance and strengthen retirement benefits for their workers.
THE ISSUES
Delayed pension remittances can prevent workers’ contributions from reaching their Retirement Savings Accounts as required under the Contributory Pension Scheme.
PenCom’s automated penalty system is designed to strengthen accountability by ensuring that employers settle outstanding liabilities before obtaining pension clearance certificates.
The restrictions on pension fund operators’ investments in non-compliant companies also extend the enforcement mechanism beyond direct penalties, potentially affecting the business and investment relationships of defaulting employers.
The N36.6bn recovered from defaulting employers as of July 2026 highlights the scale of the commission’s recovery efforts. However, continued monitoring and enforcement remain necessary to ensure that deductions made from workers’ salaries are remitted promptly.
Compliance among state governments also remains an issue, with two additional states beginning contributions in 2026 but not yet meeting all the requirements for full implementation.
WHAT’S BEING SAID
“I would also note that the new system we just implemented for PCC, the system 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,” Omolola Oloworaran, Director-General of the National Pension Commission, said.
“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,” Omolola Oloworaran said.
“A deduction on a payslip that does not reach a Retirement Savings Account is a breach of trust and a breach of the law,” Omolola Oloworaran said.
“We will find what is owed, we will recover it, and we will hold those responsible to account,” Omolola Oloworaran said.
WHAT’S NEXT
PenCom is expected to continue monitoring employers’ pension remittances, pursuing outstanding contributions and enforcing penalties against organisations that fail to comply with pension regulations.
The commission is also engaging state governments to improve compliance with the Contributory Pension Scheme and expand retirement benefits for public-sector workers.
Employers with outstanding penalties will need to settle their liabilities to obtain Pension Clearance Certificates, while pension fund operators must observe restrictions on investments involving non-compliant organisations.
BOTTOM LINE
PenCom’s automated penalty system strengthens enforcement against employers that delay workers’ pension contributions. By linking outstanding penalties to pension clearance certificates and restricting investments in non-compliant companies, the commission is seeking to improve remittance discipline and protect workers’ retirement savings.
