The National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) have joined forces to crack down on employers, insurance companies, and service providers failing to comply with Nigeria’s pension and insurance regulations.
In a joint circular signed by Abdulrahaman Muhammad Saleem, Director of Surveillance at PenCom, and Dr. Talmeez Usman, Director of Legal, Enforcement, and Market Development at NAICOM, the two regulators warned that full compliance with the Pension Reform Act (PRA) 2014 and the Nigeria Insurance Industry Reform Agenda (NIIRA) 2025 is now mandatory.
The directive, made available to Daily Sun, mandates all employers to adhere strictly to the Contributory Pension Scheme (CPS) and ensure their employees are covered under Group Life Assurance (GLA) policies, as required by law.
Under Section 2 of the PRA 2014, employers in both the public and private sectors are legally obligated to:
- Participate in the CPS,
- Remit pension contributions no later than seven working days after salary payment, and
- Maintain life insurance cover for all employees.
Despite years of engagement, audits, and sanctions, PenCom said many employers — including some in the financial services sector — remain in breach of these statutory requirements.
“Non-compliance with pension remittance and life insurance obligations continues to threaten the sustainability and credibility of the Contributory Pension Scheme,” the circular stated.
To address this, PenCom has appointed Recovery Agents to audit defaulting organizations, impose administrative penalties, and pursue legal action to recover outstanding contributions and accrued sanctions.
The regulators said the new joint enforcement framework is designed to close compliance gaps, improve transparency, and ensure workers’ retirement and life insurance benefits are fully protected.
“This collaborative effort marks a stronger enforcement era in Nigeria’s pension and insurance sectors,” the statement added, warning that defaulters will face stricter oversight and potential legal consequences.
