The President of the Nigeria Labour Congress (NLC), Joe Ajaero, has called on the National Pension Commission (PenCom) to impose stricter sanctions on employers who fail to comply with pension regulations in Nigeria.
Ajaero made the call on Thursday during a roundtable discussion between PenCom and the NLC leadership, attended by Nairametrics. He said the NLC continues to receive numerous complaints about the inefficiency of some Pension Fund Administrators (PFAs) and the persistent non-compliance of several employers in both the public and private sectors.
“We call for stronger and more decisive regulatory actions from PenCom. This should include publishing the names of non-compliant employers and imposing stiffer sanctions,” Ajaero stated.
NLC Presents More Recommendations to PenCom
Ajaero commended the PenCom Director-General, Ms. Omolola Oloworaran, and her management team for organizing the interactive session, describing it as a positive move toward strengthening collaboration for the welfare of Nigerian workers.
He emphasized the need to address existing challenges within the Contributory Pension Scheme (CPS) and to enhance its efficiency, accountability, and transparency.
The NLC President also expressed concern over the continued delay in inaugurating PenCom’s full board, noting that while the Commission has a chairman, the absence of a complete board undermines governance, delays strategic decisions, and weakens oversight.
He urged PenCom to liaise with relevant government authorities to ensure the immediate inauguration of the full board, stressing that it is vital to promoting transparency, accountability, and effective service delivery.
Ajaero further proposed the creation of a standing committee comprising representatives from both NLC and PenCom to proactively address emerging pension issues and serve as a rapid-response mechanism for workers’ grievances. “This will deepen our collaboration and enhance mutual understanding,” he added, while reiterating the need for stronger regulatory enforcement against pension defaulters.
PenCom Reaffirms Commitment to Workers’ Welfare
In her remarks, PenCom’s Director-General, Omolola Oloworaran, described the Contributory Pension Scheme (CPS) as one of Nigeria’s most transformative social security reforms.
“Despite its challenges, the CPS has restored confidence in the dignity of labour by ensuring that every Nigerian worker’s effort translates into retirement security,” she said.
Oloworaran acknowledged the NLC’s consistent advocacy for workers’ welfare, highlighting the critical role labour unions have played in shaping Nigeria’s pension landscape through continuous collaboration with the Commission.
She encouraged the NLC to engage constructively in discussions on the Revised Regulation on the Investment of Pension Fund Assets and the proposed amendments to the Pension Reform Act 2014, currently before the National Assembly.
According to her, PenCom will continue to strengthen compliance with the Pension Reform Act among private-sector employers and state governments, while improving benefits administration and ensuring timely payments.
Background
The NLC’s renewed demands follow PenCom’s announcement that it recovered N4.57 billion from defaulting employers between Q1 2024 and Q1 2025.
The Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), Mr. Oguche Agudah, disclosed in August 2025 that the recovered amount included N2.12 billion in outstanding pension contributions and N2.45 billion in penalties imposed on 138 employers for failing to remit pension funds as required by law.
