Nigeria’s National Pension Commission (PenCom), says it has recovered N14.76 billion outstanding pension contributions and penalties.
The acting Director General, Mrs Aisha Dahiru-Umar disclosed this at a one-day interactive session with the Organised Private Sector (OPS) on “Challenges and Future Outlook of the Pension Reform Act (PRA 2014)” in Lagos state.
Dahiru-Umar, said the figure comprised N7.53 billion principal contributions and N7.23 billion as penalties respectively.
She also said the entire amounts were credited into the workers’ Retirement Savings Accounts (RSAs).
According to her, the penalty is meant to compensate the workers for the income that would have been earned, if the principal contributions were remitted as and when due.
“The recovery exercise which has been largely successful has boosted the confidence of contributors and encouraged employers to embrace the CPS,” she said.
The Director General added that the pension industry had transited from a deficit of over N2 trillion in 2004 to accumulated pension fund asset worth over N8.23 trillion, with registered membership of 8.14 million as at July 2018.
Dahiru-Umar, said only 136,377 NSITF members had applied for their contributions to be transferred into their RSAs to date.
“That number is a far cry from the over 1.2 million workers that transited from the NSITF Scheme to the CPS. To address the challenge of contributor apathy, the commission had severally featured advertorials in National Dailies requesting NSITF contributors to apply for the transfer of their contributions into their RSAs.
“I implore all employers to encourage their employees who have contributed to the NSITF Scheme to liaise with the PFAs and, in particular Trustfund Pensions, for guidance on how to have their contributions transferred to their RSAs.
“Members who contributed to the NSITF Scheme can also visit the commission’s website for the guidelines on the transfer of NSITF contributions,” she added.