PenCom, NERC team up to penalise DisCos, GenCos over unpaid pensions

BY MOTOLANI OSENI

The National Pension Commission (PenCom) and the Nigerian Electricity Regulatory Commission (NERC) have agreed to jointly enforce sanctions against electricity Distribution Companies (DisCos) and Generation Companies (GenCos) over failure to remit pension contributions for their employees.

During a courtesy visit to NERC’s headquarters on April 25, 2025, PenCom’s Director General, Ms Omolola Oloworaran, revealed that 16 power firms are yet to remit billions of naira in outstanding pension contributions and penalties, despite repeated enforcement efforts and attempts at out-of-court resolution. She urged NERC to make a valid Pension Clearance Certificate from PenCom a condition for licensing, permit renewals, and other regulatory approvals in line with the Pension Reform Act 2014.

Oloworaran said electricity companies under NERC’s regulation must meet their legal obligation to deduct and remit monthly pension contributions to workers’ Retirement Savings Accounts (RSAs). She noted that PenCom had previously engaged Recovery Agents to recover unremitted funds, but several operators continued to flout compliance directives, putting workers’ retirement security at risk.

READ ALSO: SEC urges Nigerians to report Ponzi schemes, warns of rising fraud risks

In response, NERC Chairman Engr. Sanusi Garba expressed full support for PenCom’s efforts and pledged to ensure compliance across the sector. He called for a detailed reconciliation of liabilities and said both agencies will work together on a sustainable enforcement plan.

To that end, a joint working group will be established to develop strategies aimed at ensuring full pension compliance by all power sector operators.