PenCom and NLC Launch Crackdown on Employers Who Fail to Remit Pension Contributions — What You Need to Know

The National Pension Commission (PenCom) and the Nigeria Labour Congress (NLC) Lagos State Council have announced joint enforcement operations targeting both government agencies and private sector employers who have failed to honour their obligations under the Contributory Pension Scheme (CPS).

What Triggered This Action?

The move followed what the NLC described as an alarming increase in complaints from workers whose pension contributions were deducted monthly from their salaries but not remitted to their respective Pension Fund Administrators (PFAs).

The issue came to a head at an interactive session organised by PenCom in Lagos on 19 May 2026 for labour leaders and union executives. The NLC Lagos State Council chairperson, Comrade Agnes Funmi Sessi, stated at the session that pension is a fundamental right of every worker, not a privilege.

According to Sessi, many workers only discover that their contributions were never forwarded to their PFAs when they are already approaching retirement — by which point years of savings have vanished.

What the Law Says

The Pension Reform Act (PRA) 2014 mandate employers to deduct and remit pension contributions for their employees not later that 7 working days after payment of salary. Every employee is required to open a Retirement Savings Account (RSA) with a Pension Fund Administrator of his/her choice, and at the end of every month, the employer is required to deduct 8% of the employee’s total emolument from the employees salary, add 10% of the employee’s total emolument from the employer’s pocket and remit the total as pension contributions to the chosen PFA of the employee. PenCom’s Director-General, Mrs. Omolola Oloworaran, warned that deducting workers’ pension contributions without remitting it is a criminal offence under the pension law.

The Enforcement Plan

Starting from June 1, 2026, PenCom and the NLC will begin joint compliance monitoring and enforcement operations across Lagos. Volunteer members of the NLC Lagos chapter have been constituted into a task force to ensure remittances of pension funds, starting operations from June 1. Task force commanders from affiliate unions have been inaugurated to support enforcement operations statewide. PenCom’s Head of Compliance, Ahmed Lawan, who represented the Director-General at the session, said the Commission would continue to partner with the NLC to ensure workers retire with dignity.

Defaulting employers face two types of consequences:

Legal prosecution under the Pension Reform Act
Public naming and shaming — the NLC warned it will not hesitate to expose recalcitrant employers in the court of public opinion, alongside initiating strict legal actions against them.

How to Report a Defaulting Employer

1. Report to PenCom directly
Workers can report their employer for non-remittance of pension contributions by sending an email to compliance@pencom.gov.ng or visit PenCom offices, check HERE for addresses of all PenCom offices.

2. Report to the NLC Lagos State Council
NLC Lagos office: 29, Olajuwon Street, Off Ojulegba Road, Yaba, Lagos

3. Report to your trade union’s task force commander
The NLC has inaugurated a task force drawn from the State Administrative Council and State Executive Council, working with PenCom to identify erring organisations. Workers who are members of an NLC-affiliate union can escalate through their union branch directly to the task force.

Whistleblower Protection for Workers

PenCom encouraged workers to report defaulting employers and assured whistleblowers that their identities would remain protected during investigations. Workers are also urged to cooperate by providing information to strengthen compliance efforts.

What This Means for You

Employees should check with their PFA immediately to confirm that contributions are being received. If they are not, this is the moment to act — report to the NLC or PenCom with your payslips as evidence.

Employers who have been non-compliant should use the remaining days to regularize their remittances and engage their employees’ PFAs before enforcement teams come knocking.

The message from PenCom and the NLC is clear: the non-remittance of pension contributions constitutes a gross violation of labour and pension laws and an abuse of workers’ trust — and the era of impunity is over.

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