ICPC, PenCom Recover ₦3bn Pension Arrears from Defaulting Employers

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) and the National Pension Commission (PenCom) have recovered over ₦3 billion in unremitted pension contributions from defaulting employers, reinforcing efforts to protect the retirement savings of Nigerian workers.

The recovered funds, obtained from employers in the electricity sector who failed to remit pension deductions, have been fully credited into the respective Retirement Savings Accounts (RSAs) of affected employees in line with the provisions of the Pension Reform Act (PRA) 2014.

The recovery was achieved through a joint enforcement initiative by ICPC and PenCom aimed at tackling pension contribution defaults and ensuring employers comply with their statutory obligations under the Contributory Pension Scheme.

According to PenCom, the successful recovery highlights the effectiveness of its partnership with the anti-corruption agency in enforcing compliance with the Pension Reform Act and safeguarding workers’ retirement benefits.

To strengthen collaboration, PenCom and ICPC signed a Memorandum of Understanding (MoU) in October 2025, establishing a framework for the recovery of outstanding pension contributions, investigation of pension-related infractions, and enforcement of compliance with the Pension Reform Act 2014.

PenCom disclosed that ICPC is currently investigating several other private sector employers referred by the Commission for non-compliance with the pension law, noting that additional recoveries are expected as the investigations progress.

Under the Pension Reform Act 2014, employers are required to deduct and remit pension contributions into employees’ Retirement Savings Accounts within seven working days after the payment of salaries. Failure to comply constitutes a violation of the law and attracts sanctions, including the recovery of outstanding contributions, penalties, and, where necessary, prosecution.

The Commission urged all employers, particularly those in the private sector, to regularise outstanding pension remittances and ensure full compliance with the provisions of the Act to avoid regulatory and enforcement actions.

PenCom reaffirmed its commitment to protecting the retirement savings of Nigerian workers, promoting compliance with the Contributory Pension Scheme, and ensuring that pension contributions deducted from employees are promptly remitted into their Retirement Savings Accounts.