PenCom automates penalties for employers delaying pension remittances

The National Pension Commission has introduced an automated system for calculating penalties against employers who delay remitting workers’ pension contributions, as part of efforts to strengthen compliance with the Pension Reform Act.

The commission said employers with outstanding penalties cannot obtain Pension Clearance Certificates until they settle their liabilities, which could affect their eligibility for government contracts and other business transactions that require evidence of pension compliance.

The Director-General of PenCom, Omolola Oloworaran, disclosed this on Tuesday during the 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,” she said.

Oloworaran explained that the initiative was designed to ensure that employers fulfilled their obligations to workers under the Contributory Pension Scheme.

Although penalties for delayed remittances already exist under the pension law, the automated system links the calculation and settlement of outstanding penalties to the issuance of clearance certificates.

She acknowledged that some employers continued to withhold 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.

The DG disclosed that PenCom had extended pension compliance requirements to commercial relationships involving pension operators and their business partners.

• Experts caution against unregulated AI adoption
• PenCom automates penalties for employers delaying pension remittances
• JUST IN: Protesting military retirees block pensions board entrance in Abuja

She cited First Bank, United Bank for Africa, Guaranty Trust Bank, Access Bank and Zenith Bank as examples of major financial institutions with pension industry affiliations that could support the enforcement measures.

According to her, pension fund operators are also prohibited from investing in companies that fail to remit pension contributions for their employees.

She explained that the restrictions covered investment placements and other financial transactions involving non-compliant organisations.

Oloworaran said the commission had engaged recovery agents to examine employers’ records, determine outstanding pension liabilities and facilitate the recovery of unpaid contributions.

She disclosed that cumulative recoveries from defaulting employers had reached N36.6bn as of July 2026, adding that recoveries recorded during the year had already surpassed 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 declared.

“We will find what is owed, we will recover it, and we will hold those responsible to account.”

On compliance by state governments, Oloworaran disclosed that two additional states had commenced pension contributions in 2026, although they had yet to meet all the requirements for full implementation of the scheme.

She said PenCom was engaging state governments to improve compliance and strengthen retirement benefits for their workers.