Barely three days to the commencement of its threat of crackdown on non-pension compliant employers, labour and pension sector analysts have cautioned the NLC to handle the situation with care to avoid closure of small businesses, which will lead to employment, Ebere Nwoji reports.
The Nigerian Labour Congress (NLC), has said that effect from June 1, 2026, it would crack down on non-pension remitting employers as well as employers who have not keyed into the Contributory Pension Scheme (CPS) for their workers in line with the Pension Reform Act 2014.
The Chairperson NLC Lagos State Chapter Council, Funmi Sessi, who stated this at an interactive session between the executive members of the congress and the National Pension Commission (PenCom) recently in Lagos insisted that from June 1st, the congress would declare a statewide enforcement action against government institutions, private companies and any employer that failed to remit workers’ pension deductions and those that have failed to set up pension plan for their workers. She warned that defaulting employers would face prosecution and public exposure beginning from June 1, 2026. Sections 3(1) and 2(2) of the Pension Reform Act (PRA) 2014 mandate employers to set up and participate in the CPS for their workers. The Act states that in keying into the scheme, every employee should open a Retirement Savings Account (RSA) with any Pension Fund Administrator of his choice and at the end of every month his employer should deduct 8 percent of his salary and save into the RSA account while contributing 10 per cent of his fund into the same savings account for the employee.
