NLC begins crackdown on pension remittance defaulters June 1

The Nigeria Labour Congress (NLC), Lagos State Council, has announced plans to commence enforcement of pension remittance compliance from June 1, targeting employers who deduct pension contributions from workers’ salaries without remitting them to Pension Fund Administrators (PFAs) as required under the Pension Reform Act.

Funmi Sessi, chairman, Nigeria Labour Congress (NLC), Lagos State Chapter made the disclosure during a press conference by the council after an interactive session on the workings of the Contributory Pension Scheme organised by the National Pension Commission (PenCom) held in Lagos.

Sessi said the NLC has noticed persistent failure of some government agencies and private employers to remit workers’ pension deductions, describing the practice as a serious violation of workers’ rights and a threat to their retirement security.

She said the union could no longer remain silent while employers deduct pension contributions from workers’ salaries under the CPS without remitting the funds to the appropriate Pension Fund Administrators (PFAs).

According to her, the growing trend has exposed thousands of workers to uncertainty after retirement despite years of dedicated service, stressing that pension is a fundamental right of every worker and not a privilege.

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“It is unacceptable that employers continue to deduct pension contributions from workers’ salaries without remitting them as required by the Pension Reform Act. This is a gross violation of labour laws and an act of injustice against hardworking Nigerian workers,” Sessi said.

She noted that the NLC Lagos State Council had received increasing complaints from affected workers across both the public and private sectors, prompting the union to begin immediate enforcement and monitoring actions in collaboration with the National Pension Commission (PenCom) and other relevant stakeholders.

Sessi maintained that the labour movement would intensify efforts to ensure compliance with pension remittance obligations by defaulting employers across Lagos State.

“We will not fold our arms while workers are subjected to exploitation and uncertainty after retirement. Employers must act responsibly and comply fully with pension remittance obligations in the interest of industrial harmony, social justice, and national development,” she stated.

The NLC chairman warned that employers who continue to default risk legal action and public exposure, adding that the union is prepared to deploy every lawful means necessary to protect workers’ welfare and future security.

As part of the enforcement measures, the council has inaugurated Task Force Commanders at the state level from among members of its State Administrative Council (SAC) and State Executive Council (SEC) to strengthen compliance and monitoring efforts.

Sessi reiterated the commitment of the NLC Lagos State Council to defending workers and pensioners, insisting that the union remains “the voice of the voiceless” and would continue to fight for the protection of workers’ rights and dignity.

Ahmed Lawan, head of Compliance and Enforcement Department at PenCom, speaking during the presentation on the workings of the CPS, said that, having implemented the Pension Reform since 2004, the major concern of the regulator has now shifted to the private sector, where many employers still fail to remit pension deductions despite deducting contributions from employees’ salaries monthly.

To address the situation, he said PenCom and other relevant authorities are strengthening compliance enforcement measures across sectors to ensure that employers fully comply with pension remittance obligations.

He explained that the rapid growth of pension assets to nearly N30 trillion has made it imperative for regulators to protect contributors’ funds by ensuring strict compliance within the pension ecosystem.

As part of the enforcement measures, Lawan disclosed that companies seeking contracts or business relationships with the Federal Government are now required to provide evidence of pension compliance, including proof that employees’ pension contributions have been fully remitted.

He added that the compliance drive is also being extended to financial institutions, contractors, vendors, and other organisations seeking access to pension-related investments.

According to him, organisations are expected not only to comply directly with pension regulations, but also to ensure that their contractors, service providers, and business partners meet pension remittance obligations.

He further revealed that labour unions are being engaged as part of broader efforts to strengthen monitoring and enforcement of pension compliance across the country.