PenCom automates penalties for employers delaying pension remittances

The National Pension Commission (PenCom) has implemented an automated system to calculate penalties against employers who delay remitting workers' pension contributions. This move aims to strengthen compliance with the Pension Reform Act and prevent employers from obtaining Pension Clearance Certificates until they settle their liabilities.

PenCom Director-General, Omolola Oloworaran, announced the system during a media conference in Abuja. The new system links the calculation and settlement of penalties directly to the issuance of clearance certificates. Despite existing penalties for delayed remittances under the pension law, this automated system will make it more challenging for employers to evade obligations.

Oloworaran highlighted that the commission has also extended compliance requirements to commercial relationships involving pension operators and their business partners. Failure to remit pension contributions can hinder employers' eligibility for government contracts and business transactions requiring evidence of pension compliance.

PenCom has engaged recovery agents to recover unpaid contributions from defaulting employers, with cumulative recoveries reaching N36.6bn as of July 2026. The commission expects complaints to be responded to within 24 hours, with additional time allowed as needed.