NLC to Enforce Pension Compliance from June 2026

The Nigerian Labour Congress (NLC) announced a crackdown on employers who do not comply with pension contribution regulations, set to begin on June 1, 2026. NLC chairperson for Lagos State, Funmi Sessi, stated that the enforcement action will target both government institutions and private companies that fail to remit pension deductions as mandated by the Pension Reform Act of 2014.

Employers are required to deduct 8% of employees' salaries and contribute 10% to their Retirement Savings Accounts (RSA) monthly. Non-compliant employers risk prosecution and public exposure.

The Pension Reform Act allows for voluntary participation in pension plans for organizations with fewer than three employees, while those with three to fourteen employees can enroll in a micro pension plan. Bridget Omolola Oloworaran, the Director General of PenCom, emphasized the need for collaboration with labor unions to ensure compliance and improve the pension system, which currently holds assets worth N29 trillion.