PENCOM Diligence pays off: Recovers N24Bn

The Nigerian Pension Industry plays a crucial role in ensuring financial security for both public and private sector workers during their retirement years. The National Pension Commission (PenCom) has been at the forefront of regulating and safeguarding the interests of pension contributors through its proactive approach and commitment to service delivery. This blog post will delve into the recent achievements of PenCom, including the recovery of outstanding contributions from defaulting employers, the increase in pension assets, and the establishment of the consumer protection department.

Recovering Outstanding Contributions:

According to the Director-General of PenCom, Aisha Dahiru, the Commission has successfully recovered a significant amount of outstanding contributions from defaulting employers. Between June 2012 and March 31, 2023, a total of N24,533,339,305.09 was recovered. This amount comprises principal contributions of N12,440,682,240.91 and penalties of N12,092,657,064.18. In the first quarter of 2023 alone, N384,280,651.48 was recovered from 34 defaulting employers.

Increase in Pension Assets:

The efforts of PenCom have resulted in a substantial increase in pension assets. During the first half of 2023, pension assets rose by N1.77 trillion, reaching N16.76 trillion by the end of June 2023. This growth signifies the importance of the Contributory Pension Scheme (CPS) in enabling workers to build retirement savings steadily throughout their careers. Furthermore, the membership of the pension scheme has also witnessed a significant increase, with 146,920 new contributors joining, bringing the total number of members to over 10 million by June 2023.

Commitment to Service Delivery:

PenCom's commitment to improving service delivery is evident through its establishment of the consumer protection department. This department replaces the corporate responsibility and servicom department and focuses on ensuring the protection of rights and effective service delivery to retirement savings account holders and retirees. By establishing uniform rules, regulations, and standards for the administration of pension matters, PenCom aims to enhance efficiency and customer satisfaction within the industry.

The Nigerian Pension Industry, under the guidance of the National Pension Commission, continues to make significant strides in transforming service delivery and promoting customer satisfaction. The recovery of outstanding contributions from defaulting employers, the substantial increase in pension assets, and the establishment of the consumer protection department all contribute to the overarching goal of providing financial security for workers during their retirement years. With the Contributory Pension Scheme in place, workers can now build their retirement savings with confidence, ensuring a secure future.