PenCom recovers N4.57 billion from defaulting employers over five quarters – PenOp CEO

The National Pension Commission (PenCom) has successfully recovered a total of 4.57 billion Naira from employers who defaulted on their obligations between the first quarter of 2024 and the first quarter of 2025.

This action underscores PenCom’s commitment to safeguarding the retirement savings of workers within Nigeria’s Contributory Pension Scheme.

This information was presented by Mr. Oguche Agudah, Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), during an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.

Mr. Agudah elucidated that the recovered amount comprises 2.12 billion Naira in outstanding pension contributions, alongside 2.45 billion Naira in penalties imposed on 138 employers who failed to remit pension funds as mandated by law.

“This is evidence that enforcement continues to safeguard workers’ retirement savings,” he said.

A Shift in Strategy
He emphasized that PenCom is shifting from reactive enforcement to proactive prevention.

“The pattern also highlights what is next, which is a move from episodic crackdowns to durable prevention by tightening real-time remittance monitoring, escalating sanctions for chronic defaulters, and deepening employer education to reduce repeat offenses,” Agudah stated.

“The goal is not just big recovery headlines,” he added, “it is fewer defaults, faster remittances, and a stronger, more predictable Contributory Pension Scheme.”

Agudah also reminded employers of their legal obligations, noting that any organization with three or more employees is required to remit pension contributions. He encouraged workers to report non-compliant employers through whistleblowing mechanisms provided by PenCom.

A Breakdown of the Figures
A breakdown of the enforcement efforts revealed that the highest recovery occurred in Q1 2024, when PenCom recouped N751.51 million in contributions and N1.44 billion in penalties. Although recoveries dipped mid-year, enforcement activity surged in Q4 2024 and rebounded strongly in Q1 2025.

During the first quarter of 2025 alone, PenCom recovered N972.12 million in contributions and N381.88 million in penalties from 19 employers. While this quarter did not record the highest total recovery, it posted the strongest principal contribution average N71 million per employer, compared to N63 million in Q1 2024.

Agudah noted that the trend reflects PenCom’s focus on larger, more material cases, even as the number of defaulting employers continues to decline.