The National Pension Commission has sought the Economic and Financial Crimes Commission’s intervention to tackle pension fraud, particularly employers’ failure to remit pension contributions.
PenCom’s director-general, Omolola Oloworaran, made the appeal on Thursday during a visit to the EFCC headquarters in Abuja, accompanied by commission officials.
Ms Oloworaran said some employers deduct the mandatory eight per cent pension contribution from employees’ salaries but fail to remit the funds to their Retirement Savings Accounts (RSAs).
She added that such employers also default on their statutory 10 per cent contributions, thereby jeopardising workers’ retirement savings and future financial security.
Describing the practice as financial misconduct, the PenCom chief called on the EFCC to help recover the withheld funds and prosecute defaulting employers.
“Employees are stealing from Nigerians. And we need a way to recover this money from them. We are looking for a more effective way to manage this situation,” she said.
Ahmed Lawan, an acting director in PenCom’s Compliance and Enforcement Department, said employers’ failure to remit deducted pension contributions has left many retirees facing financial difficulties, restating the need for a joint framework between the two agencies to address the practice.
He called for a formal collaboration framework between both agencies to curb the practice.
EFCC chairman Ola Olukoyede described the practice as fraudulent and promised to investigate the allegations and ensure that those responsible face justice.
Mr Olukoyede promised to fast-track action on the matter and work towards recovering the outstanding pension contributions. He said the anti-graft agency would thoroughly investigate the issue and take appropriate measures to protect Nigerians from fraudulent practices in the pension industry.