PenCom, ICPC Sign MoU to Recover Unremitted Pension Funds, Enforce Compliance

The National Pension Commission (PenCom) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC) have signed a Memorandum of Understanding (MoU) aimed at recovering unremitted pension funds and enforcing compliance among defaulting employers and public institutions.

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The agreement, sealed in Abuja on Tuesday, marks a renewed collaboration between the two federal agencies to curb corruption, mismanagement, and violations in Nigeria’s pension administration system. It represents one of the boldest steps yet by PenCom to ensure that both public and private sector employers fulfill their statutory obligations under the Pension Reform Act (PRA) 2014.

A Joint Effort to Protect Pension Assets

Speaking at the signing ceremony, the Director-General of PenCom, Mrs. Aisha Dahir-Umar, explained that the MoU will enable both agencies to work closely to identify, investigate, and prosecute employers or officials who fail to remit pension deductions, misappropriate funds, or manipulate pension records.

According to her, the collaboration will also enhance the enforcement powers of PenCom, allowing the Commission to leverage ICPC’s legal and investigative capacity in dealing with stubborn defaulters.

“The signing of this MoU marks another significant milestone in our collective commitment to ensure that every Nigerian worker’s pension contribution is fully accounted for. With ICPC’s support, we will strengthen compliance, recover unremitted contributions, and deter future violations,” Dahir-Umar stated.

She noted that over the years, PenCom has recovered billions of naira through its Recovery Agents initiative, but that some employers and government agencies continue to default, leading to unpaid pension deductions running into hundreds of billions of naira.

ICPC Promises Strong Enforcement

In his remarks, the Chairman of ICPC, Dr. Musa Adamu Aliyu, emphasized that the Commission would deploy its full investigative and prosecutorial powers to address corruption and non-compliance in the pension sector.

He said that pension mismanagement remains a major source of corruption in Nigeria’s public and private institutions, noting that such acts rob retirees of their financial security and erode public trust in government systems.

“The ICPC views the non-remittance of pension deductions as a serious act of corruption. We will ensure that those who withhold or divert pension funds face the full weight of the law. This MoU gives us a framework to work directly with PenCom to ensure accountability and justice,” Aliyu stated.

He added that the partnership aligns with ICPC’s broader anti-corruption strategy, which prioritizes collaboration with relevant institutions to ensure that public funds are protected and public servants are held accountable.

Strengthening the Pension System

Under the new arrangement, PenCom and ICPC will jointly undertake investigations into cases of unremitted pension funds, fraudulent withdrawals, and other violations of the PRA 2014. The two agencies will also share intelligence, conduct joint audits, and engage in capacity-building initiatives to improve enforcement efficiency.

Part of the agreement also involves sensitization campaigns targeted at employers, employees, and the general public to promote better understanding of pension obligations and the consequences of non-compliance.

The MoU also covers the establishment of a joint task force that will monitor ongoing investigations, review compliance reports, and ensure timely recovery of identified unremitted pension contributions.

Widespread Pension Defaults

According to data from PenCom, as of mid-2024, over ₦15 trillion had been accumulated in the Contributory Pension Scheme (CPS). However, the Commission estimates that several billions of naira in pension deductions remain unremitted by defaulting employers, particularly in the public sector and small-to-medium private enterprises.

PenCom has repeatedly lamented that some employers deduct workers’ pension contributions monthly but fail to remit the funds to their respective Pension Fund Administrators (PFAs), contrary to the PRA. This not only constitutes an offense but also jeopardizes the retirement plans of millions of Nigerian workers.

In 2023 alone, PenCom’s Recovery Agents reportedly retrieved over ₦24 billion from defaulting employers, including both principal contributions and penalties. Yet, the Commission insists that the problem persists, requiring a more forceful and coordinated enforcement approach — hence the MoU with the ICPC.

Stakeholders Applaud the Initiative

The partnership has been widely praised by labour unions, pension fund operators, and civil society groups. The Nigeria Labour Congress (NLC) described the move as “timely and essential” for ensuring that workers’ contributions are safe and fully accounted for.

NLC President, Comrade Joe Ajaero, said:

“This MoU gives hope to millions of Nigerian workers whose pension deductions have been trapped in bureaucratic or corrupt systems. We urge both agencies to ensure that the collaboration delivers tangible results, not just promises.”

Similarly, the Pension Fund Operators Association of Nigeria (PenOp) commended the initiative, saying it would enhance confidence in the pension system and encourage more Nigerians to participate in the CPS.

Looking Ahead

The PenCom–ICPC partnership signals a renewed determination by the Nigerian government to enforce accountability and transparency in pension administration. It also underscores the importance of inter-agency collaboration in tackling systemic corruption and protecting workers’ rights.

Both institutions have pledged to begin immediate implementation of the MoU, starting with joint investigations into major cases of unremitted pension funds already identified across several states and federal agencies.

If effectively implemented, the collaboration could help recover billions of naira in trapped pension funds, restore trust in the pension system, and ensure that Nigerian workers retire with dignity and financial security.