Contributory Pension Scheme: Judge Warns Nigerian Employers Over Non-Remittance

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Contributory Pension Scheme: Judge Warns Nigerian Employers Over Non-Remittance

Justice Anuwe says defaulters face strict liability and limited legal defences

Justice Olufunke Anuwe of the National Industrial Court has warned that Nigerian employers who fail to remit, or under-remit, employees’ contributory pension funds will be held strictly liable under the law.

Speaking at the Fourth Forum of Company Secretaries and Legal Advisers in the Pension Industry, organised by the National Pension Commission (PenCom), Justice Anuwe stressed that non-compliance with the Pension Reform Act remains one of the most frequently contested issues in Nigerian courts.

“Employers who default in remitting pension contributions have little to no legal defences,” she said. “The courts have consistently affirmed the rights of both PenCom and individual contributors to recover outstanding funds, with penalties and interest enforced to ensure compliance.”

She added that pension entitlements are a constitutional right and must be respected. “Pensioners must be paid for the services they have rendered. It is not optional,” Anuwe asserted.

The judge further clarified that the National Industrial Court of Nigeria (NICN) has exclusive jurisdiction over pension-related matters — a development she said has streamlined legal processes and improved access to justice in the sector.

PenCom Director General, Omolola Oloworaran, commended Justice Anuwe for her legal insights, noting that her interpretations are helping shape the evolving pension landscape.

“The forum is timely,” Oloworaran added, “especially as we continue efforts to strengthen corporate governance and respond to the growing body of court rulings that are redefining pension administration in Nigeria.”

Contributory Pension Scheme

This development comes just days after PenCom issued a directive to all employers, reminding them of their legal obligation to comply fully with the Contributory Pension Scheme.

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