The National Pension Commission has approached the Nigerian Electricity Regulatory Commission for urgent intervention over the non-payment of pension contributions by electricity Generation Companies and Distribution Companies.
During a courtesy visit to NERC headquarters, PenCom’s Director General, Ms. Omolola Oloworaran, led a delegation to highlight concerns about the persistent non-compliance by 16 electricity companies, who owe billions of naira in pension liabilities and accrued penalties.
The corporations have not complied with their pension responsibilities in spite of many enforcement actions, including formal warnings and a planned out-of-court settlement procedure.
Speaking at the meeting, Oloworaran said: “We urge NERC to take concrete regulatory measures to compel electricity companies under its jurisdiction to comply with the provisions of the Pension Reform Act 2014.”
She further proposed that NERC should make the possession of a valid Pension Clearance Certificate a mandatory requirement for issuing or renewing licenses and other regulatory approvals.
Highlighting the impact on workers, Oloworaran said: “The non-remittance of pension contributions by power firms is a direct violation of employees’ rights and undermines the objectives of the contributory pension scheme.”
According to her, GENCOs and DISCOs are obligated by law to deduct monthly pension contributions from employees’ salaries and remit them, along with employer contributions, to their respective Retirement Savings Accounts (RSAs).
She conveyed to the leadership of NERC that: “PenCom had earlier assigned Recovery Agents to perform audits and assess the degree of non-compliance in the private sector.”
Nevertheless, even with Recovery Agents effectively identifying the unpaid obligations of numerous businesses, several firms have persisted in neglecting their legal responsibilities.
Responding, the president of the NERC, Sanusi Garba, realized the severity of the situation.
He said: “We realized the gravity of this problem and we pledged to work with PenCom to solve it.”
Garba requires evaluation in the situation, saying: “There must be reconciliation in all current pension debts in the field of electricity.”
He vowed NERC’s full assistance for implementing a long-term solution that prioritises employee welfare.
As a key outcome of the meeting, both PenCom and NERC agreed to establish a joint working group to address the pension compliance gap within the power sector.
It is anticipated that the committee will create plans to improve enforcement, guarantee accountability, and fortify cooperation between the two regulatory bodies.
PenCom’s move to engage NERC signals a more coordinated regulatory effort aimed at ensuring full compliance with pension laws and protecting workers in Nigeria’s electricity sector from being denied their rightful retirement benefits.