PenCom recoveries from defaulting employers rise 180%, hit N4.04bn

By Victor Ahiuma-Young & Rosemary Iwunze

The National Pension Commission, PenCom, has recorded a major breakthrough in pension compliance, recovering  N4.04 billion from defaulting employers between January and November 2025—a 180 per cent increase over the N1.44 billion recovered in the whole of 2024.

Director General of PenCom, Ms Omolola Oloworaran, who disclosed this yesterday in Lagos, during an interactive meeting with Journalists, attributed the sharp rise in recoveries to strengthened enforcement measures and tighter compliance rules introduced under the Commission’s Pension Revolution 2.0 reform agenda.

According to the Commission, enforcement efforts peaked in the third quarter of 2025, when N2.06 billion was recovered from erring employers—almost 150 per cent of the total recoveries recorded in the entire year.

The Director General explained that a key driver of the improved compliance was a decisive circular issued in the second quarter of the year, which linked the issuance of Pension Clearance Certificates (PCCs) to participation across the pension industry value chain.

She said: “Essentially, any organisation without a valid pension clearance certificate cannot transact business with pension fund administrators or attract pension fund investments. When compliance is tied to real economic consequences, behaviour changes.”

Supporting this trend, PenCom revealed that the average quarterly value of pension clearance certificates issued prior to the circular stood at about N150 billion, but rose sharply to N233 billion in the third quarter, far exceeding previous levels.

The Commission noted that the recoveries reflect a broader shift in employer behaviour, as more organisations move to regularise outstanding pension contributions to avoid sanctions and business restrictions.

The compliance drive forms part of wider reforms aimed at protecting workers’ retirement savings, deepening trust in the contributory pension scheme, and strengthening governance across the pension industry.

PenCom reaffirmed its commitment to sustained enforcement, warning that non-remittance of pension contributions would no longer be tolerated.

The Commission said the ongoing reforms are designed to ensure that pension contributions are remitted promptly, retirees are paid without delay, and Nigeria’s pension system remains transparent, inclusive, and resilient.

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