Nigerian Companies Defrauding Workers, Hoard Pension Fund

Some companies have been accused of deducting monthly pensions from their staff salaries but didn't remit the money to the retirement saving accounts of their employees. The money said to have been hoarded amount to NGN17.52 billion. Companies In Nigeria Hoarding Employees' Pension After Salary Deductions.

The activities of the companies as regards the remittance of employees pension fund was disclosed by the National Pension Commission (PenCom). PenCom penalised the companies for hoarding the pension fund - the names of the companies were not revealed.

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Defaulting Companies Penalised For Hoarding Funds

It was gathered that the NGN17.52 billion consist of principal contribution and penalty. The principal contribution was put at NGN8.89 billion, while the penalty accounts for NGN8.63 billion, PenCom's 2020 second-quarter report disclosed.

“Following the issuance of demand notices to some defaulting employers whose outstanding pension contribution liabilities had been established by the recovery agents (RAs), 16 of the affected employers remitted the sum of N261.3 million representing principal contribution (N152.7 million) and penalty (N108.5 million) during the quarter.

“This brought the total recoveries made from inception to June 30, 2020, to N17.5 billion comprising principal contribution of N8.8 billion and penalty of N8.6 billion.” PenCom said.

Defaulters Denied Pension Clearance Certificates 

Meanwhile, PenCom processed and issued 4,937 organisations pension clearance certificates out of 5,100 private organisations that applied for PCCs. It was revealed that the organisations received the PCCs because they have remitted the sum of N19.3 billion into the RSAs of 67,692 employees.

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But PenCom declined applications from 163 companies due to non-remittance of pension contributions for the appropriate period and/or non-provision of group life insurance policy.

“A total of 51 complaints relating to non-remittance of pension contributions, Nigeria Social Insurance Trust Fund (NSITF) pension payment, other benefits and pension payment under Pension Transitional Arrangement Directorate (PTAD) were received during the quarter out of which 24 were resolved while the remaining 27 were at various stages of processing,” the report read.

According to the report, in the first quarter of 2020, the number of pension contributors rose to 9.10 million, from 9.06 million contributors the previous quarter - this shows 41,074 contributors joined the pension industry during the period under review.