PenCom to Automate Penalty Calculations for Employers

The National Pension Commission (PenCom) announced plans to begin calculating penalties against defaulting employers through an automated system, following cumulative recoveries of N36.6 billion as of July 2026. This announcement was made by the Director-General of PenCom, Omolola Oloworaran, during the 2026 Annual PenCom Media Conference in Abuja.

The initiative is part of efforts to strengthen compliance with the Pension Reform Act, as some employers continue to withhold pension contributions or delay remittances. Oloworaran stated that any deduction on a payslip that does not reach a Retirement Savings Account (RSA) is a breach of trust and a violation of the law.

PenCom has also extended pension compliance requirements to commercial relationships involving pension operators and their business partners. The enforcement operations against employers failing to remit pension contributions commenced on June 1, led by PenCom and the Nigeria Labour Congress (NLC) Lagos Council.

In August 2025, PenCom had recovered N4.57 billion from defaulting employers between the first quarter of 2024 and the first quarter of 2025.