Oloworaran Reads Riot Act, Says Every Pension Deduction Must Be Remitted, Contributions Accounted For

•PenCom signs deal with ICPC to boost enforcement, recovery

•Declares rebranded personal pension plan to benefit 10 million Nigerians

James Emejo in Abuja and Amby Uneze in Owerri

Director-General, National Pension Commission (PenCom), Ms. Omolola Oloworaran, has vowed to ensure that every Naira deducted as pension by employers of labour was remitted, and contributions properly accounted for.

Speaking at the signing of a Memorandum of Understanding (MoU) between PenCom and Independent Corrupt Practices and Other Related Offences Commission (ICPC) in Abuja, Oloworaran said, “Every worker must be assured that their future is secure.”

She stated that the ceremony went far beyond the signing of a document to signify a “shared moral and institutional commitment – a partnership rooted in our collective resolve to strengthen integrity, transparency, and accountability in the management of pension funds in Nigeria”.

Separately, at a sensitisation workshop on the workings of the Contributory Pension Scheme (CPS) in Owerri, yesterday, Oloworaran reaffirmed the commission’s commitment to ensuring dignity and security for Nigerian workers and retirees under the scheme.

She said the pension system, once marred by arrears and unpaid entitlements, had evolved into a transparent, sustainable, and inclusive mechanism, protecting the retirement of over 10 million Nigerians across the public and private sectors, including self-employed individuals under the newly rebranded Personal Pension Plan (PPP).

On the parnership with ICPC, Oloworaran stressed that the pension system was built on trust, and confidence of millions of Nigerian workers who, month after month, entrusted a portion of their hard-earned income to secure dignity in their old age.

She explained that under the partnership, both institutions will work hand-in-hand to recover unapplied and unremitted pension contributions; ensure prompt disbursement of recovered funds into the Retirement Savings Accounts (RSA) of contributors; and hold defaulting employers accountable in line with the law.

The deal will further ensure efficiency and seamless coordination – requiring both institutions to have designated focal officers, Director of Operations from ICPC, and Director of Surveillance from PenCom – to ensure that information sharing, investigation, and enforcement happened with speed and precision.

Oloworaran pointed out that with ICPC’s enforcement authority and PenCom’s regulatory oversight, “We are confident that compliance and recovery outcomes in the pension industry will reach new heights.”

According to her, the collaboration is not “merely institutional – it is moral. It reflects our shared belief that public service is a sacred trust”.

She said, “Over the years, PenCom has made significant progress in enforcing compliance with the Pension Reform Act. But we must also be candid, challenges remain.

“We still confront the troubling realities of unapplied contributions under the IPPIS platform, and cases of unremitted pension liabilities by employers. These lapses are not just administrative oversights; they represent a direct threat to the livelihood and security of Nigerian workers.

“With ICPC’s enforcement authority and PenCom’s regulatory oversight, we are confident that compliance and recovery outcomes in the pension industry will reach new heights.”

The PenCom boss further reaffirmed the commission’s commitment to ensuring that the MoU was not just signed but fully implemented, monitored, and continuously strengthened.

She said, “We are determined to rebuild confidence in the pension system and to ensure that every Nigerian worker receives, in full and without delay, the benefits they have diligently earned.

“Together, we can make this system a model of integrity and efficiency, one that embodies the very best of what public service should represent.

“Let us, therefore, see this partnership not as an end, but as a beginning a new chapter in the story of Nigeria’s public accountability.

“Our duty, both as regulator and as anti-corruption enforcer is to ensure that this trust is never broken. Every Naira deducted must be remitted. Every contribution must be properly accounted for. Every worker must be assured that their future is secure.”

In his remarks, Chairman, ICPC, Dr. Musa Aliyu, underscored the importance of focusing on compliance within the private sector, where he said large sums of pension liabilities remained unremitted.

Represented by ICPC’s Executive Secretary, Mr. Clifford Oparaodu, Aliyu said, “Over time, people have often focused on compliance in the public sector. But there is so much money in the private sector, and that’s where enforcement is toughest.

“Many private employers think only of profit and fail to fulfil their obligations to workers. With this MoU, we are now better positioned to compel compliance.”

Aliyu said ICPC’s approach will continue to combine enlightenment and enforcement.

He said the commission had consistently prioritised education to help employers understand their obligations under the law, but where awareness failed to produce results, enforcement will follow.

He said, “We always start with education, telling people what the law requires. But when you know what to do and still refuse to comply, we will go the other way. Our duty is to ensure that every worker gets what they have earned after years of service.”

He stressed that ICPC had already recorded several recoveries from defaulting organisations in sectors, such as power distribution and public utilities, citing the example of the Port Harcourt Electricity Distribution Company (PHEDC), which had been compelled to refund substantial pension liabilities.

The MoU establishes a framework for collaboration between PenCom and ICPC to ensure effective recovery and remittance of pension liabilities. It also aims to promote compliance with the Pension Reform Act 2014.

Under the agreement, PenCom is to submit verified petitions against defaulting employers to ICPC, provide data on affected employees and their liabilities, and confirm that recovered funds had been properly credited to retirement accounts.

ICPC, in turn, will investigate, enforce payment, and confirm remittances, sharing relevant information with PenCom.

The MoU also contains provisions for confidentiality, mutual good faith, and quarterly review meetings to assess progress and refine enforcement strategies.

Both agencies agreed that while the MoU was a moral, rather than a legally binding document, it underscored their commitment to act in good faith and uphold the public interest.

Meanwhile, the PenCom director-general, who was represented at the South-east zonal sensitisation workshop by PenCom Commissioner, Inspectorate, Mr. Samuel Uwandu, described the CPS as “a national success story that has rewritten Nigeria’s pension narrative from chaos to confidence”.

She said pension assets had now exceeded N25 trillion, channelled into key sectors to drive economic growth and national development.

She revealed that over 844,000 retirees currently received either regular monthly pensions or lump-sum benefits through the CPS — a testament to its reliability and efficiency.

Oloworaran unveiled a series of bold reforms under the “Pension Revolution 2.0” initiative aimed at improving benefits, strengthening governance, and restoring trust in the system.

Among the innovations and novel developments was Pension Boost 1.0, under which pensions for over 241,000 retirees had been enhanced, raising total monthly pension payments from N12.1 billion to N14.8 billion effective June 2025.

The PenCom director-general also said there was now zero Waiting Time for Pension Payments, as since July 2025, retirees no longer waited to access their pensions, as payments were now made immediately upon retirement.

She told the retirees that a new framework had been developed in collaboration with the Office of the Head of the Civil Service to reintroduce gratuity payments for federal workers under the CPS.

Furthermore, Oloworaran said President Bola Tinubu had approved the issuance of N758 billion bonds to clear outstanding pension liabilities and arrears dating back to 2007 — a move she described as “a bold and compassionate intervention that will bring relief to pensioners and strengthen confidence in the system”.

In addition, she said PenCom had issued five major regulations, including Whistle-blowing Guidelines for Pension Assets, a revised Investment Regulation, and Guidelines for the newly introduced Accredited Pension Agents under the Personal Pension Plan.

Participants were excited when the director-general announced that later this year, PenCom will roll out a free health insurance package for low-income pensioners to enhance their welfare beyond financial pensions.

Oloworaran emphasised that reform was an ongoing process.

“We are not resting on our laurels,” she said, adding, “Our goal is to ensure that every Nigerian worker and retiree can confidently rely on the CPS for a dignified retirement.”

She acknowledged that despite remarkable progress, some challenges persisted, notably, limited coverage among states and private employers, and lingering public scepticism rooted in the failures of the past.

Oloworaran said, “This workshop is part of our nationwide effort to rebuild trust,” she stated. “It provides an opportunity to listen, explain, and strengthen confidence in the system.”

She also announced the introduction of a new Enrolment Application System designed to streamline and simplify the retiree registration process. The system will feature a more user-friendly interface and faster processing time, particularly for the 2026 retiree enrolment exercise and the one-off enrolment of employees of treasury-funded MDAs with accrued pension rights.

Looking ahead, Oloworaran outlined PenCom’s strategic focus areas, including diversifying pension asset investments, strengthening governance, expanding coverage — especially in the informal sector — and enhancing welfare through health and gratuity buffers.

“The Contributory Pension Scheme belongs to all of us,” she said. “Its success depends on collaboration, advocacy, and trust. Together, we can build a future where every Nigerian worker retires with dignity and peace of mind,” she added.

Oloworaran urged participants to engage actively in the discussions, and stressed that the workshop was not just about policies, but about co-creating a stronger, fairer pension system for the nation.

In his remarks, Chairman, National Salaries, Incomes and Wages Commission (NSIWC), Ekpo U. O. Nta, maintained that pension was provided to offer financial security in old age, ensuring retirees can maintain their standard of living, reduce poverty, and prevent them from being a burden on their families or the government.

Represented by Chika Ochor, Nta said pension served as a replacement for earned income after stopping work due to age or health, providing a steady financial stream through investments and contributions made during one’s working years.