Contributory Pension Scheme: Judge warns Nigerian employers against non-remittance

Justice Olufunke Anuwe of the National Industrial Court has warned Nigerian employers over non-remittance or under-remittance of contributory pensions of employees.

Justice Anuwe said employers who fail to remit, or who under-remit pension contributions, are strictly liable under Nigerian law and face limited legal defences when such matters are brought before the courts.

She made this known in her presentation at the Fourth Forum of Company Secretaries and Legal Advisers in the Pension Industry, organised by the National Pension Commission (PenCom).

According to her, one of the most frequently litigated issues in the pension sector involves the non-remittance or under-remittance of pension contributions by employers.

“Nigerian courts have consistently upheld the rights of PenCom and pension contributors to initiate legal proceedings to recover such funds. Statutory penalties and interest have also been enforced to ensure compliance,” she stated.

“It is a constitutional right,” she affirmed, “and pensioners must be paid for the service they have rendered”.

Addressing jurisdictional concerns, Justice Anuwe noted that the National Industrial Court of Nigeria (NICN) remains the appropriate court for pension-related disputes.

“This consolidation has helped streamline pension adjudication under one specialised court,” she added.

In her part, PenCom Director General Omolola Oloworaran lauded Justice Anuwe for her presentation. She said the judge’s legal interpretations continue to illuminate the evolving pension landscape in Nigeria.

Oloworaran said the judge’s presence at the forum offered a valuable opportunity for stakeholders to gain clarity on judicial interpretations of the PRA.

Oloworanran further underscored the significance of the forum considering ongoing efforts to strengthen corporate governance within the pension industry and the increasing number of court rulings shaping pension administration in Nigeria.

DAILY POST recalls that PenCom, barely two days ago, ordered Nigerian employers to comply with the contributory pension scheme.

Contributory Pension Scheme: Judge warns Nigerian employers against non-remittance