April 17, (THEWILL) — Nearly N30 billion in pension contributions remains uncredited to workers’ Retirement Savings Accounts (RSAs), highlighting persistent inefficiencies in Nigeria’s Contributory Pension Scheme (CPS).
Data from the National Pension Commission (PenCom) shows that N29.84 billion is currently held by Pension Fund Administrators (PFAs) due to employer-related issues such as inconsistent data, incomplete schedules, and irregular remittances.
Stanbic IBTC Pensions accounts for the largest share of the backlog with N14.60 billion, followed by PAL Pensions (N2.76 billion), Trustfund Pensions (N2.09 billion), Premium Pension (N1.72 billion), and Access ARM Pensions (N1.67 billion). Together, these firms hold a significant portion of the uncredited funds.
Industry experts say the problem is largely driven by employer non-compliance. In many cases, pension contributions are deducted from employees’ salaries but either delayed or not remitted.
Even when payments are made, they are often submitted without proper documentation, making reconciliation difficult.
Data integrity issues also worsen the situation. Incorrect RSA PINs, incomplete employee records, and inconsistent personal details especially among older accounts continue to hinder accurate allocation of funds.
Bulk payments without individual breakdowns further complicate the process.
Analysts note that some contributors also operate multiple RSAs or have outdated records, increasing the risk of delays, particularly at retirement when access to funds becomes critical.
To address these challenges, PenCom has introduced the Pension Contribution Remittance System (PCRS), a digital platform designed to streamline remittances, improve transparency, and reduce errors.
The commission has also approved Payment Solution Service Providers to validate data before processing payments.
Experts say stricter enforcement, improved data management, and real-time validation systems will be key to resolving the backlog and restoring confidence in the pension system.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
