The National Pension Commission (PenCom) has enlisted the support of the Nigerian Electricity Regulatory Commission (NERC) to compel electricity Generation Companies (GENCOs) and Distribution Companies (DISCOs) to settle unpaid pension contributions for their employees.
To facilitate this collaboration, PenCom and NERC have established a joint working group tasked with addressing pension compliance challenges in the power sector.
This was disclosed when PenCom’s Director General, Ms Omolola Oloworaran, led a delegation on a courtesy visit to NERC headquarters, seeking the Commission’s intervention in addressing non-compliance by 16 electricity companies.
Ms Oloworaran stated that these firms have failed to remit billions of naira in pension contributions and associated penalties, despite multiple warnings, enforcement attempts, and even an ordered out-of-court settlement.
She urged NERC to reinforce compliance with the Pension Reform Act 2014 (PRA 2014) by making the presentation of a valid Pension Clearance Certificate, issued by PenCom, a mandatory requirement for licensing and other regulatory approvals granted to power companies.
The Director General of PenCom emphasised that, as the regulator of the electricity sector, NERC plays a crucial role in ensuring that private entities under its jurisdiction—including GENCOs and DISCOs—fulfil their statutory obligation to deduct and remit monthly pension contributions for their employees to their Retirement Savings Accounts (RSAs).
PenCom had recently deployed Recovery Agents to establish and recover outstanding pension contributions across the private sector.
However, Ms Oloworaran expressed concern that several electricity companies have continued to ignore their obligations even after these Recovery Agents confirmed their liabilities.
In response, NERC Chairman, Engr Sanusi Garba, assured PenCom of the Commission’s readiness to collaborate in enforcing pension compliance.
He stressed the need for a thorough reconciliation of all outstanding liabilities and pledged NERC’s support in finding a sustainable resolution to the issue.
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