PenCom Recovers N4.04bn from Defaulting Employers in 2025, Expands Pension Coverage for Artisans and Gig Workers
The National Pension Commission (PenCom) has announced the recovery of N4.04 billion from defaulting employers between January and November 2025, a significant rise from N1.44 billion recorded in 2024. This represents a 180 percent increase and reflects the commission’s intensified efforts to enforce compliance and strengthen Nigeria’s contributory pension scheme.
Speaking at the PenCom 2025 Annual Conference in Lagos, Director-General Omolola Oloworaran highlighted that the commission’s restructuring of the micro-pension framework into the Personal Pension Plan (PPP) is designed to reach artisans, traders, gig workers, and other informal sector participants. The initiative aims to remove longstanding barriers to participation, making retirement savings accessible to all Nigerians, regardless of their employment type.
Oloworaran revealed that companies without valid pension clearance certificates are now barred from conducting business with pension fund administrators or attracting pension fund investments. The new compliance measures have yielded tangible results: recoveries in the third quarter of 2025 alone reached N2.06 billion, nearly 150 percent higher than the total for 2024. Additionally, the average value of pension clearance certificates increased from N150 billion to N233 billion in the third quarter, signaling improved adherence by employers.
Beyond compliance, PenCom introduced major welfare and technology upgrades under its Pension Revolution 2.0 initiative. These include zero waiting time for retirees to receive approved benefits, the launch of Pension Boost 1.0, which adds N2.6 billion monthly to pension payments, and full automation of key administrative processes. The commission also inaugurated the Pension Industry Healthcare Initiative (PENCARE), set to provide free healthcare for low-income retirees, starting with a pilot for 30,000 beneficiaries.
Oloworaran emphasized that the reforms are driven by data, dialogue, and discipline, with the next phase focusing on expanding coverage, deepening trust, and safeguarding retirement benefits. “Retirement security is not a privilege, it is a right, and PenCom will defend it firmly and fairly,” she stated, underlining the commission’s commitment to building a robust and inclusive pension system for all Nigerians.
source: The Sun