PenCom DG, Aisha Dahir-Umar

By Ngozi Onyeakusi—Nigeria’s National Pension Commission (PenCom) has recovered N24.53 billion from defaulting Employers .

The Director-General of PenCom, Mrs Aisha Dahir-Umar, disclosed this at a forum in Lagos

Represented by Head of Corporate Communications of PenCom, Mr Abdulqadir Dahiru, she stated that N12.44 billion recovered was the actual pension contribution with N12.09 billion as penalty.

PenCom stated that the amount was recovered from June 2012 to March 31, 2023, as that of the recovered sum, N12.44 billion is actual pension contribution while N12.09 billion is penalty, the report added:

“During the first quarter of 2023, N384.28 million (comprising N193.06 million contributions and N191.22 million penalties) was recovered from 34 defaulting employers.

“PenCom is committed to protecting workers’ interests and ensuring that employers pay pension contributions as and when due” according to its DG

Benefits and Assets

Dahiru-Umar noted that PenCom is committed to ensuring that Nigerian workers would receive their retirement benefits in time, and its meticulous regulation and supervision of the pension industry had ensured that pension assets and the Contributory Pension Scheme (CPS) membership continued to grow, she added:

“The value of pension assets stood at N15.58 trillion as at March 31, while CPS membership was 9.95 million.

“In 2022, PenCom launched a policy allowing Retirement Savings Account (RSA) holders to utilise a portion of their retirement savings as equity for mortgages.

“ The policy marked a significant milestone in the commission’s ongoing efforts to provide greater flexibility and access to pension funds for the benefit of RSA holders.

“We recognise that many individuals face challenges in securing adequate housing upon retirement, and we aim to address this issue by unlocking the value of their pension savings to facilitate homeownership.

“Under this new policy, RSA holders who have contributed to their accounts for at least five years and met specific eligibility criteria can utilise up to 25 per cent of their pension savings as equity contribution towards acquiring residential properties” she added.

She added that the new PenCom policy aligns with its commitment to ensuring that pension funds catalyse economic development and social well-being.

Under the new policy, RSA holders could access 25 per cent of their RSA balance to cushion the effect of job loss if they could not secure another employment after four months of job loss, aspartial withdrawal from RSA was to offer immediate support during a difficult period.

The remaining balance in the RSA will continue to grow and accumulate until the RSA holder attains retirement age.