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Published May 21, 2026businesscomplianceeconomy

PenCom, NLC begin crackdown on pension defaulters June 1

Nigeria's PenCom and the NLC will begin enforcing compliance on pension defaulters in Lagos from June 1, targeting employers who fail to remit contribution

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The National Pension Commission and the Nigeria Labour Congress, Lagos State Council, will begin the enforcement of compliance on pension defaulters under the Contributory Pension Scheme from June 1. The Chairperson of the NLC Lagos State Council, Funmi Sesi, disclosed this after an interactive session organised by PenCom in Lagos on Tuesday 19 May 2026.

The session focused on the workings of the Contributory Pension Scheme and sensitised labour leaders on pension compliance obligations under the Pension Reform Act. Sesi condemned the continued failure of some government agencies and private employers to remit deducted pension contributions to Pension Fund Administrators.

“It is unacceptable that despite monthly deductions from workers’ salaries, some employers deliberately fail to remit the funds,” she said. She warned that the practice endangered the future of workers and undermined their economic security after retirement, saying, “The non-remittance of pension contributions constitutes a gross violation of labour laws and abuse of workers’ trust.” She described a pension as a fundamental workers’ right, stressing that employees deserved to retire with dignity after years of productive service.

She warned that the Congress would mobilise affiliate unions against employers refusing to comply with pension remittance obligations. “If we need to purchase locks and keys just to ensure compliance and enforcement, we will apply that. We are the voice for the voiceless, the power for workers and the last hope of workers and pensioners,” Sesi said.

She further warned that defaulting employers risked public exposure and possible legal action for violating pension regulations, urging employers to comply fully with pension laws to promote industrial harmony, social justice and national development. Related News Consensus, protests trail APC primaries across states Lagos tops Nigeria’s ease of doing business rankings NGOs launch safeguarding programme for child domestic workers Similarly, the Director-General of PenCom, Mrs Omolola Oloworaran, said the Contributory Pension Scheme guaranteed financial security for workers after retirement.

Oloworaran, who was represented by the Head of the Compliance and Enforcement Department, Ahmed Lawan, said retirees previously suffered severe hardship and delayed pension payments. She noted that the CPS had improved pension administration but accused some employers of frustrating the scheme through the non-remittance of deductions.

Oloworaran warned ministries, departments, agencies, parastatals and private firms against denying workers their pension rights. She stressed that retirement should not become painful after years of dedicated public and private service. “Deducting workers’ pension contributions without remitting them is a criminal offence under the pension law,” she warned.

The PenCom chief encouraged affected workers to report defaulting organisations to the NLC for investigation and enforcement. She assured workers that the identities of whistleblowers would remain protected where necessary during enforcement operations. Oloworaran announced that PenCom and the NLC would begin joint monitoring and enforcement exercises across Lagos from June.

“We will go after organisations involved in non-remittance of workers’ pension deductions in Lagos State,” she said. The Chairperson of the NLC Lagos State Council, Funmi Sesi, disclosed this after an interactive session organised by PenCom in Lagos on Tuesday 19 May 2026.

“We will go after organisations involved in non-remittance of workers’ pension deductions in Lagos State,” she said. The session focused on the workings of the Contributory Pension Scheme and sensitised labour leaders on pension compliance obligations under the Pension Reform Act.

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PenCom, NLC begin crackdown on pension defaulters June 1

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