By David Akinmola
In Nigeria’s sprawling cities and growing economy, thousands of workers wake up each morning believing they’re building a future — contributing their labor, time, and loyalty to institutions that promise stability. But for many, that promise is nothing more than a myth.
Behind the glossy logos and company slogans lies a truth PenCom, Nigeria’s pension regulatory body, is now unearthing — a truth that reveals how countless organizations, including some of the country’s most recognized names, have refused to comply with the Contributory Pension Scheme (CPS). And now, the cost of that refusal is falling squarely on the shoulders of unsuspecting workers.
The System: Built to Protect
Established under the Pension Reform Act of 2004, the CPS was introduced to address Nigeria’s troubled pension history — one marred by delayed payments, corruption, and mismanagement. Under the scheme, employees contribute a minimum of 8% of their monthly salary, while employers add 10%, both remitted to a Retirement Savings Account (RSA) managed by licensed Pension Fund Administrators (PFAs).
The goal was simple: ensure that every worker — whether in banking or teaching, construction or healthcare — could retire with dignity.
But nearly two decades later, the system is under threat — not because it failed, but because thousands of employers have chosen to ignore it.
The List That Sparked Outrage
In 2025, the National Pension Commission (PenCom) released a long-awaited report detailing organizations that had failed to remit pensions for their employees. Over 17,000 organizations — a staggering figure — were exposed as defaulters.
While some names were unsurprising, given Nigeria’s volatile SME sector, others raised eyebrows: construction giants, private universities, healthcare providers, and even state-owned enterprises were on the list. These were employers who, despite their profitability and profile, had neglected their legal and ethical duty.
“For years, I believed my pension was being remitted,” says Ngozi O., a former staff member at a popular media house. “Only when I tried to access my RSA did I realize I had no savings. I was never even registered.”
Why Organizations Default
According to experts, defaulters fall into several categories:
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Ignorance or Negligence: Many small businesses claim they’re unaware of the legal requirements. But ignorance, PenCom insists, is no excuse.
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Financial Excuses: Some employers say remitting pensions is an additional financial burden. Ironically, many of these same businesses record consistent profits or pay executive bonuses.
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Deliberate Avoidance: Perhaps most troubling are companies that know the law but choose to flout it, betting that enforcement is weak or consequences minimal.
“We’ve seen companies receiving billions in contracts but failing to remit pensions,” said a senior PenCom official who asked to remain anonymous. “It’s not inability — it’s impunity.”
PenCom Strikes Back
Determined to enforce compliance, PenCom has begun:
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Publishing defaulters’ names in national dailies.
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Restricting access to federal contracts for non-compliant companies.
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Partnering with the EFCC and other regulatory bodies to pursue legal action.
“This is no longer just a regulatory issue; it’s a moral one,” said the commission. “Organizations cannot profit off labor while stealing the future of their workers.”
Public Outcry and Legal Challenges
Labor unions and civil society organizations have taken up the cause. The Nigeria Labour Congress (NLC) has called for stiffer penalties, including prosecution of Chief Executive Officers of defaulting companies.
“We are ready to march,” said Comrade Ayodele Fashina, a union leader. “We will not allow a system that rewards fraud and punishes loyalty.”
Some workers have begun filing lawsuits, demanding back-pay and pension remittances. However, the legal process remains slow and costly.
What Can Workers Do?
PenCom has urged Nigerian workers to take proactive steps:
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Verify RSA registration with licensed PFAs.
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Request pension deduction statements from HR.
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Report non-compliant employers via the PenCom whistleblower portal.
For many workers, awareness is the first step to reclaiming control of their future.
Conclusion: A Battle for the Future
Nigeria’s pension crisis is not just about paperwork or policy — it’s about people. It’s about the security of the bricklayer in Ibadan, the nurse in Enugu, the teacher in Kano. The organizations that refuse to comply are not just violating the law — they are violating the trust of their employees.
Until there’s full transparency and accountability, Nigeria’s working class remains vulnerable. But if PenCom’s bold stance in 2025 is any indicator, a reckoning is coming.
And this time, the future may finally belong to the workers.
If You Suspect Your Employer Is Not Compliant:
Visit www.pencom.gov.ng or contact your Pension Fund Administrator (PFA). You can also email PenCom directly at compliance@pencom.gov.ng or call their hotline.
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