PenCom, NLC to begin enforcement against pension remittance defaulters in Lagos

The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) Lagos Council will commence enforcement operations against employers that fail to remit workers’ pension contributions under the Contributory Pension Scheme (CPS) from June 1.

Chairperson of the NLC Lagos Council, Funmi Sesi, disclosed this after an interactive session organised by PenCom in Lagos on Tuesday.

The session focused on educating labour leaders on the workings of the Contributory Pension Scheme and compliance obligations under the Pension Reform Act.

What they are saying

Sesi condemned the continued failure of some government agencies and private sector employers to remit pension deductions to Pension Fund Administrators (PFAs).

• “It is unacceptable that in spite of monthly deductions from workers’ salaries, some employers deliberately fail to remit the funds,” she said.

She described the practice as a violation of labour laws that threatens workers’ financial security after retirement.

• “The non-remittance of pension contributions constitutes a gross violation of labour laws and abuse of workers’ trust,” Sesi stated.
• “If we need to purchase locks and keys just to ensure compliance and enforcement, we will apply that. We are the voice for the voiceless, the power for workers and the last hope of workers and pensioners,” she added.

Sesi warned that the NLC would mobilise affiliate unions against defaulting employers and pursue enforcement actions where necessary.

Get up to speed 

The planned enforcement follows growing complaints from workers across Lagos over employers deducting pension contributions without remitting them to PFAs.

According to the NLC, complaints have been received from workers in both public and private establishments.

Labour leaders stressed that pension contributions remain a statutory right of workers under the Contributory Pension Scheme.

The CPS was introduced to ensure workers receive retirement benefits promptly and reduce the pension payment challenges experienced under the old system.

The NLC said the growing number of complaints prompted the decision to begin monitoring and enforcement exercises in partnership with PenCom.

More insights

PenCom Director-General, Omolola Oloworaran, also warned employers against withholding workers’ pension deductions.

Represented by Mr Ahmed Lawan, Head of PenCom’s Compliance and Enforcement Department, she said the CPS was designed to guarantee financial security for workers after retirement.

Oloworaran noted that while the pension scheme had improved retirement administration in Nigeria, some employers continue to frustrate the process through non-remittance of deductions.

• “Deducting workers’ pension contributions without remitting them is a criminal offence under the pension law,” she warned.

She further disclosed that PenCom and the NLC would begin joint compliance monitoring and enforcement operations across Lagos from June.

Oloworaran encouraged workers to report defaulting employers to the NLC and assured whistleblowers that their identities would remain protected during investigations.

What you should know 

In a related development, PenCom recently granted Pension Fund Administrators a special regulatory waiver to invest pension assets in the upcoming Initial Public Offering (IPO) of Dangote Petroleum Refinery & Petrochemicals FZE (DPRP).

• The waiver was announced in a circular dated May 13, 2026.
• The approval temporarily suspends some investment restrictions applicable to PFAs under existing regulations.
• PenCom described the approval as a one-off exception based on the strategic importance and investment profile of the Dangote Refinery project.

The move marks a significant shift in PenCom’s approach to equity-related pension investments.

PenCom said it remains committed to protecting workers’ retirement savings while strengthening compliance across the pension industry.