The National Pension Commission (PenCom) has formally requested the intervention of the Economic and Financial Crimes Commission (EFCC) to combat widespread pension fraud, specifically targeting employers who persistently fail to remit mandatory retirement contributions. This move seeks to address the growing crisis of non-compliance that continues to threaten the financial security of millions of Nigerian workers.
The Director-General of PenCom, Omolola Oloworaran, led a delegation to the EFCC headquarters in Abuja this Thursday to table the request. During the meeting, she highlighted a disturbing trend where employers deduct the statutory eight percent pension contribution from their employees’ monthly salaries but fail to transfer these funds into the appropriate Retirement Savings Accounts (RSAs). Furthermore, these employers often neglect to pay their own required 10 percent employer contribution, effectively siphoning money meant for the future of the workforce.
Characterizing this behavior as a severe form of financial misconduct, the PenCom chief emphasized the urgency of recovering these withheld funds. She stressed that the commission is actively seeking a more robust strategy to hold these employers accountable, noting that the systemic failure to remit these payments is essentially an act of theft against hardworking Nigerians.
Supporting this stance, Ahmed Lawan, an official from the PenCom Compliance and Enforcement Department, pointed out that the current climate of non-compliance has left many retirees in dire financial straits. He advocated for the establishment of a formal, collaborative framework between the two agencies, which would streamline investigations and ensure that defaulting employers face the full weight of the law.
In response to the appeal, the Chairman of the EFCC, Ola Olukoyede, acknowledged the gravity of the situation, labeling the non-remittance of pension funds as a fraudulent practice that undermines the economic wellbeing of the nation. He committed the anti-graft agency to a thorough investigation into the allegations, promising to fast-track efforts to recover outstanding funds and ensure that culprits are brought to justice. The EFCC boss reiterated that the commission remains dedicated to safeguarding the integrity of the pension industry and protecting Nigerian workers from exploitation.
Source: NaijaProbe