Nigeria's National Pension Commission has raised the alarm that state governors are
refusing to pay in N3.4 billion pension contributions deducted from their workers' monthly salaries into their retirement savings accounts with their various pension fund administrators.
“Based on PFAs’ returns, over N3.4 billion pension contributions are uncredited into state employees’ RSAs as of May 31, 2019, and the age analysis showed that over 38 percent of this amount had been outstanding for over one year," Aisha Dahir-Umar said.
The commission's acting Director General of the pension commission, made the disturbing announcement in Lagos on Wednesday at the second quarter consultative forum for states.
Dahir-Umar stated that although the sum of N8.09 billion has been remitted as pension contributions in the first quarter of 2019, she stressed that the trend of uncredited remittances which denied workers the proportionate investment income that should have accrued to them must remain the key topic of discussion.
Dahir-Umar who spoke through the Head, States Operations Department, PenCom, Dan Ndackson, further said it is pleasing to see a steady improvement in the implementation of the CPS in some states, especially with regards to the remittance of pension contributions in the period under review.
She further reported that the commission, as part of its mandate of supervising the smooth implementation of the CPS and to ensure excellent service delivery, especially in state pension administration, introduced branch inspection of PFAs in states.
Dahir-Umar said the commission had so far conducted three of such branch inspections in Edo, Ondo and Ekiti states.
“As more inspections of PFA branches are upcoming, the commission is currently utilising the outcomes of these inspections in ensuring that PFAs take the necessary remedial actions to ensure excellent service delivery in the pension industry,” she said.