For millions of Nigerian workers enrolled under the Contributory Pension Scheme (CPS), monthly pension deductions are expected to provide financial security after retirement. However, a growing challenge within the system is threatening that promise: The persistent failure of some employers to remit pension contributions deducted from employees’ salaries.
Despite nearly two decades of pension reform and significant growth in pension assets, non-remittance of pension contributions remains one of the biggest compliance concerns facing Nigeria’s pension industry. The practice cuts across both public and private sector organisations, leaving many workers vulnerable to financial hardship in retirement.
Industry stakeholders say the issue has become increasingly urgent as pension assets hits over N30.9 trillion in March 2026, making compliance enforcement a critical component of protecting contributors’ funds and sustaining confidence in the pension system.
A Growing Compliance Challenge
Under the Pension Reform Act, employers are required to deduct pension contributions from employees’ salaries and remit them promptly to their respective Pension Fund Administrators (PFAs). Failure to do so constitutes a violation of the law and undermines the objectives of the CPS. Yet many employers continue to default, creating a situation where workers believe their retirement savings are growing, only to discover years later that contributions were never credited to their Retirement Savings Accounts (RSAs).
