The National Pension Commission is escalating its efforts to recover billions of naira in unpaid pension contributions from electricity generation and distribution companies, signaling a crackdown on non-compliance in the power sector.

In a statement on Sunday, PenCom Director-General, Omolola Oloworaran recently led a delegation to the Nigerian Electricity Regulatory Commission, urging the regulator to enforce compliance among delinquent firms.

Oloworaran revealed that 16 power companies have consistently failed to remit pension contributions and accrued penalties, despite warnings, enforcement actions, and a court-ordered settlement.

To tighten oversight, PenCom is advocating for NERC to require a valid Pension Clearance Certificate from PenCom as a condition for licensing and regulatory approvals.

She said, “As the regulator of the electricity sector, NERC has a critical role in ensuring that the Gencos and Discos fulfil their statutory obligations under the Pension Reform Act 2014. Employers must deduct and remit monthly pension contributions for their employees into Retirement Savings Accounts.”

The PenCom DG emphasized the appointment of recovery agents to address unpaid pension liabilities in the private sector, especially in the electricity industry.

Despite clear liabilities being identified, some electricity companies have ignored their obligations.

In response, NERC’s Chairman, Sanusi Garba, expressed the commission’s commitment to supporting pension compliance enforcement and urged for a comprehensive reconciliation of outstanding liabilities, promising NERC’s collaboration with PenCom to ensure a sustainable resolution.

It was earlier reported that the National Pension Commission has successfully recovered N1.58 billion from defaulting employers as part of its enhanced enforcement efforts.