Buoyed by disappointment and disregard of an ordered out of court settlement and disregard of obligations after Recovery Agents have established the liabilities of electricity Generation Companies(GENCOs) and Distribution Companies (DISCOs) the National Pension Commission (PenCom) has enlisted the support of the Nigerian Electricity Regulatory Commission (NERC) to prevail on these two defaulting and non-compliant institutions to settle unpaid pension contributions for their employees.
On this premise PenCom’s Director General, Ms Omolola Oloworan and her delegation paid a courtesy visit on 25 April 2025 to NERC headquarters, to seek NERC’s intervention in addressing the non-compliance by 16 electricity companies. These firms have failed to remit billions of Naira in pension contributions and associated penalties, despite multiple warnings and enforcement attempts and even an ordered out of court settlement, effectively decoupling the employees from the benefits of two decade old pension system.
Ultimately and in line with expectation PenCom was able to seal the deal that would coerce 16 electricity companies to remit outstanding billions of Naira in pension contributions they have reneged compliance despite previous engagements that involved the court. In this new wave to force them back to line of duty to protect their workers future, Ms. Oloworaran 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.
She emphasised that as the regulator of the electricity sector, NERC has a critical 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 deployed Recovery Agents to establish and recover outstanding pension contributions across the private sector. However, Oloworaran expressed concern that several electricity companies have continued to ignore their obligations even after these Recovery Agents established their liabilities.
In response, NERC Chairman, Egr. 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.
To facilitate ongoing collaboration, PenCom and NERC established a joint working group tasked with addressing the pension compliance challenges in the power sector.
Featured picture: From left: NERC Commissioner, Planning, Research and Strategy, Dr Yusuf Ali; Chairman, NERC, Engineer Sanusi Garba; the Director General of PenCom, Ms. Omolola Oloworaran; the Head Surveillance Department PenCom, Mr. Abdulrahman Muhammad Saleem and NERC Commissioner, Consumers Affairs, Mrs Aisha Mahmud
