The National Pension Commission (PenCom) is stepping up efforts to recover unpaid pension contributions from electricity generation and distribution companies across Nigeria.
Omolola Oloworaran, the Director-General of PenCom, led a team to the Nigerian Electricity Regulatory Commission (NERC) to ask for their help in enforcing compliance with pension contributions among erring power companies. According to Oloworaran, at least 16 electricity companies have failed to remit billions of naira in pension contributions and penalties, despite multiple warnings, enforcement actions, and even attempts at out-of-court settlements.
She emphasized that NERC, as the regulator of the electricity sector, has an important role to play in ensuring that these companies fulfill their obligations under the Pension Reform Act of 2014. Oloworaran suggested that NERC should make it mandatory for electricity companies to present a valid Pension Clearance Certificate from PenCom as a condition for obtaining licenses or any regulatory approvals.
She said, “As the regulator of the electricity sector, NERC has a critical role in ensuring that Gencos and Discos meet their statutory obligations under the Pension Reform Act 2014. Employers must deduct and remit monthly pension contributions for their employees into Retirement Savings Accounts.”
PenCom has already appointed recovery agents to track down and recover outstanding pension liabilities from various industries, including the electricity sector. However, Oloworaran expressed concern that despite clear identification of these liabilities, many power companies continue to disregard their responsibilities.
In response, NERC Chairman, Sanusi Garba, assured PenCom of NERC’s full support in enforcing pension compliance in the power sector. He promised a thorough reconciliation of the outstanding liabilities and stated that NERC would collaborate closely with PenCom to find a lasting solution to the issue.
