Nearly N30bn in pension contributions belonging to Nigerian workers has remained uncredited to their Retirement Savings Accounts, raising fresh concerns over weak compliance and data management within the contributory pension scheme.
Findings showed that the backlog, put at N29.84bn by the National Pension Commission (PenCom), stems largely from employers’ failure to remit contributions promptly, alongside widespread documentation errors and inconsistencies in employees’ records.
The affected funds are currently held by Pension Fund Administrators pending proper reconciliation and allocation to beneficiaries’ accounts.
Breakdown of the figures indicated that Stanbic IBTC Pension Managers accounts for the largest share of the uncredited funds at N14.60bn, representing almost half of the total backlog.
Other PFAs with significant unallocated balances include PAL Pensions (N2.76bn), Trustfund Pensions (N2.09bn), Premium Pension Limited (N1.72bn), and Access ARM Pensions (N1.67bn).
Industry stakeholders said the trend reflects deeper structural challenges within the pension system, particularly poor compliance among private sector employers.
A pension expert, Chika Onwunali, noted that the concentration of uncredited funds in major PFAs points to systemic inefficiencies rather than isolated lapses.
According to him, large client portfolios and high transaction volumes often complicate reconciliation processes, while some operators still grapple with unresolved legacy contributions.
Further checks revealed that in many instances, employers deduct pension contributions from workers’ salaries but either delay remittance or fail to remit entirely.
Even when payments are made, they are frequently submitted without detailed schedules, making it difficult for PFAs to match contributions to the correct accounts.
Another operator, Abimbola Ogundipe, attributed part of the problem to persistent data issues, including incorrect RSA Personal Identification Numbers, incomplete employee records, and discrepancies in names—especially in accounts created before June 2019.
Analysts also identified multiple RSAs, outdated biodata, and unreported job changes as additional factors complicating the process, warning that such lapses could delay access to pension benefits at retirement.
To tackle the challenge, stakeholders have called for stricter enforcement of remittance compliance, improved data validation, and stiffer sanctions for defaulting employers, including public disclosure.
PenCom, in response, recently introduced the Pension Contribution Remittance System, a digital platform designed to automate pension payments, improve transparency, and eliminate manual errors.
The commission said the platform allows employers to upload schedules and process payments electronically, while approved Payment Solution Service Providers validate employee details before transactions are completed.
Despite these measures, experts warned that without stronger enforcement and improved data integrity, billions of naira in workers’ retirement savings may remain trapped, undermining confidence in the pension system.
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