PenCom Seeks EFCC’s Help to Recover Unremitted Pension Funds, Tackle Pension Fraud

PenCom Seeks EFCC’s Help to Recover Unremitted Pension Funds, Tackle Pension Fraud

The National Pension Commission (PenCom) has called on the Economic and Financial Crimes Commission (EFCC) to collaborate in tackling pension fraud and recovering unremitted pension contributions withheld by employers across Nigeria.

The commission raised the concern over employers who allegedly deduct pension contributions from employees’ salaries but fail to transfer the funds into their Retirement Savings Accounts (RSAs), putting workers’ retirement benefits at risk.

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During the meeting, Oloworaran expressed concern over the growing problem of employers failing to fulfil their statutory pension obligations. She explained that some employers not only default on their own pension contributions but also deduct the mandatory employee contributions without remitting the money to the appropriate retirement savings accounts.

Under Nigeria’s contributory pension system, employers are required to contribute a minimum of 10 per cent of employees’ monthly emoluments, while employees contribute a minimum of 8 per cent.

The PenCom boss described the practice as a serious financial offence that deprives Nigerian workers of funds meant to secure their future after retirement.

Commending the EFCC for its efforts in fighting financial crimes and corruption, Oloworaran expressed confidence that the anti-graft agency could help strengthen enforcement and ensure that defaulting employers are held accountable.

She stressed the need for a more effective approach to recovering the outstanding pension contributions and addressing the growing concerns surrounding pension fraud.

“Employees are stealing from Nigerians. And we need a way to recover these monies from them. We are looking for a more effective way to manage this situation. We believe you can help us. We think that the EFCC is better placed to manage this issue,” she said.

Also speaking, Ahmed Lawan, Acting Director of PenCom’s Compliance and Enforcement Department, identified the non-remittance of deducted pension contributions as one of the commission’s major concerns.

According to him, the situation is particularly troubling when employers deduct pension contributions directly from workers’ salaries but fail to remit the funds, leaving employees without the retirement benefits they are entitled to.

He noted that the practice has contributed to financial difficulties among retirees, many of whom depend on their accumulated pension savings for financial security after leaving active service.

Lawan called for a clear and effective collaboration framework between PenCom and the EFCC to address the problem, improve compliance and ensure the recovery of outstanding pension funds.

“We need an effective and efficient way to handle this. We need a framework of collaboration between PenCom and EFCC to address this menace,” he said.

EFCC Promises Investigation Into Pension Fraud Allegations

Responding to PenCom’s concerns, EFCC Executive Chairman, Ola Olukoyede, described the alleged withholding of pension contributions as fraudulent and assured the commission that the matter would receive attention.

Olukoyede, who was represented by his Chief of Staff, Commander of the EFCC Michael Nzekwe, pledged that the agency would investigate the allegations and take appropriate action against employers found culpable.

He also promised an accelerated response to the report, stressing the EFCC’s commitment to addressing financial crimes capable of threatening the welfare and future security of Nigerian workers.

According to him, the commission would examine the matter and take necessary steps to ensure that outstanding pension contributions are recovered.

“That’s fraud. We have had to deal with such issues before now. We will deal with this one also. We will look deeply into it; and I can assure whatever needs to be done would be done to ensure all the outstanding monies are recovered,” he stated.

The proposed collaboration between PenCom and the EFCC is expected to strengthen efforts to address pension contribution defaults, improve employer compliance and protect workers’ retirement savings.

For Nigerian employees, the recovery of withheld pension contributions remains critical to ensuring that their retirement savings are properly funded and available when they eventually leave active employment.