The National Pension Commission (PenCom) has been instrumental in ensuring employer compliance with pension contribution regulations, achieving significant milestones in this endeavor.
From 2012 to 2023, PenCom successfully retrieved a total of N25.45 billion in previously unremitted pension contributions from non-compliant employers.
This substantial sum comprises N12.93 billion in principal contributions and N12.52 billion in penalties accumulated over the span of 11 years.
This disclosure was made by Mr. Ibrahim Buwai, PenCom’s Director of Corporate Communications, during the Finance Correspondents Association of Nigeria (FICAN) Annual General Meeting held over the weekend.
Buwai underscored the pivotal role of the Pension Reforms Act, which mandates penalties for delayed remittances, accruing interest at a rate of 2 per cent per month. He emphasized the equitable allocation of recovered funds between principal contributions and penalties, reflecting PenCom’s comprehensive approach to enforcement.
Addressing Compliance Challenges
PenCom’s efforts to enforce compliance face challenges, notably employers’ failure to remit pension contributions and the absence of proper schedules accompanying remittances to Pension Fund Custodians (PFCs), hindering fund allocation to Retirement Savings Account (RSA) holders.
To tackle these issues, PenCom has undertaken proactive measures, including publishing a list of uncredited remittances and urging stakeholders to ensure adherence to regulations.
Ensuring Pension Fund Safety
Reaffirming PenCom’s dedication to safeguarding pension funds, Buwai assured that the regulatory body maintains stringent guidelines to mitigate investment risks. These guidelines are designed meticulously to protect pension assets from potential risks.
Buwai clarified that PenCom does not engage in investment activities with pension funds but rather sets general guidelines outlined in investment regulations.
PenCom’s relentless efforts to recover unremitted pension contributions exemplify its unwavering commitment to safeguarding employees’ retirement savings and promoting employer compliance with regulatory obligations.
Increase in Nigeria’s Unemployment Rate in Q3 2023
During the third quarter of 2023, Nigeria witnessed a notable increase in its unemployment rate, rising to 5.0 per cent from 4.2 per cent in the previous quarter. Among men, the unemployment rate was 4.0 per cent, while among women, it stood at 6.0 per cent.
Urban areas reported a higher unemployment rate of 6.0 per cent compared to 4.0 per cent in rural regions. Youth unemployment remained a significant concern, with a rate of 8.6 per cent.
Unemployment rates varied by educational attainment, ranging from 7.8 per cent for individuals with post-secondary education to 2.7 per cent for those with no formal education.
Informal Employment and Self-Employment Trends
In Q3 2023, the proportion of employed individuals engaged in informal work decreased slightly to 92.3 per cent, with women exhibiting a higher rate of informal employment compared to men. Rural areas had a higher prevalence of informal employment compared to urban areas.
Self-employment remained predominant, with 87.3 per cent of employed Nigerians working primarily as self-employed individuals. Women were more likely to be self-employed than men.
Labour Force Participation
Nigeria’s labour force participation rate declined to 79.5 per cent in Q3 2023, with men having a higher participation rate than women. Rural residents showed higher participation in labor activities compared to urban dwellers.
Additionally, 75.6 per cent of Nigeria’s working-age population was employed, with variations between genders and regions. Urban areas had lower employment-to-population ratios compared to rural areas.
