PenCom Seeks EFCC Partnership to Curb Pension Remittance Fraud

The National Pension Commission (PenCom) has formally requested the support of the Economic and Financial Crimes Commission (EFCC) to intensify the fight against pension fraud, particularly the widespread failure of some employers to remit mandatory contributions into workers’ Retirement Savings Accounts (RSAs).

PenCom Director-General Omolola Oloworaran led a delegation to the EFCC headquarters in Abuja on Thursday, 5 October 2026, where she raised alarm over the persistent practice of employers deducting pension contributions from employees’ salaries but failing to transfer the funds.

Under the Pension Reform Act, employers are required to contribute 10 per cent of an employee’s pensionable earnings while deducting and remitting the employee’s 8 per cent share. Oloworaran expressed deep concern that many employers not only withhold their own contribution but also deduct the workers’ portion and keep the money, effectively denying employees their future retirement benefits.

“We need a more effective way to manage this situation. We believe the EFCC is better placed to help us recover these monies and bring recalcitrant employers to justice,” she said, while commending the anti-graft agency’s track record in fighting economic and financial crimes.

Ahmed Lawan, Acting Director of PenCom’s Compliance and Enforcement Department, reinforced the point, noting that the non-remittance of deducted pension funds has inflicted severe hardship on many retirees who discover too late that their accounts are empty or underfunded.

Responding on behalf of EFCC Executive Chairman Ola Olukoyede, Chief of Staff Commander Michael Nzekwe described the practice as outright fraud. He assured the PenCom team that the Commission would give the matter accelerated attention, investigate thoroughly, and ensure recovery of outstanding sums while prosecuting those responsible.

“That’s fraud. We have dealt with such issues before and we will deal with this one also. Whatever needs to be done will be done to ensure all outstanding monies are recovered,” Nzekwe stated.

The engagement forms part of PenCom’s broader enforcement drive under Oloworaran’s leadership. The Commission has already recovered N36.6 billion in unremitted pension contributions from defaulting employers as of July 2026, surpassing previous annual records.

ADVERTISEMENT

It has also introduced an automated system for calculating penalties on delayed remittances, linking clearance certificates to compliance so that employers with outstanding liabilities face restrictions on government contracts and other business activities.

PenCom has further deepened collaboration with both the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to pursue withheld contributions more aggressively. Officials have repeatedly stressed that any deduction appearing on a payslip that fails to reach an RSA constitutes a breach of trust and a violation of the law.

The push comes against the backdrop of wider reforms in the pension industry. Pension assets have grown significantly, reaching over N31 trillion in recent months, while the Federal Government has cleared long-standing inherited liabilities through a major intervention bond that benefited hundreds of thousands of retirees.

New welfare measures, including the PenCare health initiative for low-income retirees and the long-awaited Minimum Pension Guarantee, are also being rolled out to strengthen retirement security.

Despite these gains, non-remittance by employers remains a stubborn challenge that undermines confidence in the Contributory Pension Scheme and leaves many workers vulnerable in old age. The renewed PenCom-EFCC partnership is expected to sharpen enforcement, accelerate recoveries, and send a clearer deterrent signal to defaulting employers across the country.