Business
34 companies fined N191.22m for not remitting workers’ pension
In the first quarter of 2023, 34 defaulting employers were fined N191.22 million by the National Pension Commission (PenCom) for not remitting N193.06 million in pension contributions.
According to PenCom data, the amount totalled N384.28 million in pension contributions owed to workers in the 34 defaulting companies.
By the end of the quarter in review, which falls between January to March, PenCom disclosed that the value of pension assets stood at N15.58 trillion, with Contributory Pension Scheme (CPS) membership at 9.95 million.
The data further showed that the commission recovered N12.44 billion in pension contributions and with defaulting companies fined N12.09 billion between January 2012 to March 31, 2023 – making the total recovery N24.53 billion.
Meanwhile, reports on Friday quoted the Director-General of PenCom, Aisha Dahir-Umar, that the regulations of the commission have been the driving force behind the growth recorded in pension contributions.
“PenCom is determined to ensure that Nigerian workers receive their retirement benefits in time,” she said, adding “The commission’s meticulous regulation and supervision of the pension industry had ensured that pension assets and the contributory pension scheme (CPS) membership continued to grow.”
Dahir-Umar also stated that the commission has created value for the pension contributors by enabling them to use part of their pension to pay for mortgages in Nigeria.
“We recognise that many individuals face challenges in securing adequate housing upon retirement, and we aim to address this issue by unlocking the value of their pension savings to facilitate homeownership.
“Under this new policy, RSA holders who have contributed to their accounts for at least five years and met specific eligibility criteria can utilise up to 25 percent of their pension savings as equity contribution towards acquiring residential properties.
“This policy aligns with our commitment to ensuring that pension funds catalyse economic development and social wellbeing,” Dahir-Umar stated.
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