December 21, (THEWILL) — The National Pension Commission, PenCom, recorded a significant success in pension compliance by recovering N4.04 billion from defaulting employers between January and November 2025. This represents a 180 per cent increase over the N1.44 billion recovered in the whole of 2024, the apex pension regulator said.
The Director General of PenCom, Ms Omolola Oloworaran, disclosed this on Thursday in Lagos, during a media interactive session attended by THEWILL.
Oloworaran 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.
She also said that the recently approved pension enhancement—specifically for retirees under the Programme Withdrawal (PW) window—has added over N2 billion to monthly pension payments, she added that the scheme is fulfilling its promise of putting smiles on the faces of pensioners.
The PenCom boss further revealed that no fewer than 30,000 retirees selected from the six geopolitical zones of the country are expected to benefit from the planned free Pension Industry Healthcare Initiative (PenCARE).
The pilot stage of the initiative is scheduled to take off in the first quarter of 2026, and is expected to be co-funded by the National Pension Commission (PenCom) and Pension Fund Administrators (PFAs) in the country.
The beneficiaries are existing pensioners under the Contributory Pension Scheme (CPS) who are currently drawing monthly pension benefits.
PenCom said the scheme is aimed at ensuring pensioners live a good life in retirement, remain fit and healthy, and enjoy longevity.
Stating that the living conditions of retirees are dear to the regulatory body and indeed the entire pension industry, Oloworaran added that every initiative embarked upon by her administration is geared towards adding value to Retirement Savings Account (RSA) holders and retirees, one of which is the free health insurance scheme.
Similarly, while presenting a paper on the subject, the Head of the Compliance and Enhancement Department at PenCom, Ahmed Lawan, noted that while PenCom would financially support the initiative, PFAs would co-fund the project through deductions from their Profit After Tax (PAT).
He said the funds contributed by both parties would be used to procure health insurance packages from Health Maintenance Organisations (HMOs) in the names of the benefiting retirees.
Assuring that the health status of retirees is paramount to the pension industry, he said: “We want our retirees to live long, and with this package, they can take care of their ailments early enough before they weigh them down or become terminal.”
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
