By Tobi Akintunde,Abuja
The National Pension Commission (PenCom) has warned employers across the country to comply strictly with the provisions of the Contributory Pension Scheme (CPS), or risk facing regulatory sanctions.
PenCom, in a statement, said it had intensified enforcement measures to ensure that all organisations remit pension contributions of their employees as and when due, in line with the Pension Reform Act 2014.
The commission expressed concern over the persistent non-compliance by some employers, particularly in the private sector, noting that failure to remit pension deductions undermines the retirement security of workers and weakens confidence in the pension system.
Under the CPS, both employers and employees are required to make monthly contributions into Retirement Savings Accounts (RSAs), which are managed by licensed Pension Fund Administrators (PFAs). However, PenCom said several employers either fail to remit deductions or delay payments, thereby breaching the law.
“Employers who fail to comply with the CPS regulations will be sanctioned in accordance with the provisions of the law,” the commission stated, adding that it would not hesitate to apply penalties, including fines and other enforcement actions, against defaulting organisations.
The regulator also urged employees to monitor their pension contributions regularly and report any discrepancies to ensure accountability.
Industry stakeholders say stricter enforcement is necessary to sustain the growth of Nigeria’s pension industry, which has recorded steady expansion since the introduction of the CPS.
Analysts note that improved compliance would not only protect workers’ retirement savings but also deepen the pool of long-term funds available for national development.
PenCom reaffirmed its commitment to safeguarding contributors’ funds and strengthening the pension system through enhanced supervision and compliance monitoring.
