PenCom out with fresh pension rules to boosts transparency with ₦4.57bn recovery says compliance is non-negotiable

 






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By allcitynews.blog 


The National Pension Commission (PenCom) has introduced sweeping reforms to standardize how pension fund operators calculate and report investment performance.

With this fresh pension rules meant to boosts transparency with ₦4.57bn recovery adding that compliance is non-negotiable, is a task that must be done.

The move is a major step toward strengthening transparency, protecting workers’ savings, and reshaping Nigeria’s pension landscape.

According to the Head of Surveillance at PenCom, A.M. Saleem, the directive took effect on July 1, 2025, and it is applicable across all licensed Pension Fund Operators (PFOs). By enforcing a uniform framework, PenCom aims to reduce short-term, speculative decision-making by Pension Fund Administrators (PFAs) and encourage more sustainable, long-term strategies.

How it will work for Nigerian workers, according to Saleem, "the reforms go beyond technical adjustments—they touch the heart of retirement security. By mandating that PFAs calculate returns using a 36-month rolling window, PenCom ensures that pension performance reflects long-term stability rather than short-lived market swings.

"Workers can now expect clearer, more reliable information about how their pensions are performing. With monthly reports required to be published on operators’ websites, contributors will have easier access to data that was once buried in complex financial documents. This transparency means workers can compare funds, make informed choices, and hold their PFAs accountable."

On how it will favour employers of labour, Saleem explained that "Employers, too, are squarely in PenCom’s spotlight. Between Q1 2024 and Q1 2025 alone, the regulator recovered ₦4.57 billion from employers who defaulted on pension remittances. This included ₦2.12 billion in outstanding contributions and ₦2.45 billion in penalties from 138 erring organizations.

"The new rules send a clear message: compliance is non-negotiable. Employers who fail to remit contributions risk not only stiff financial penalties but also reputational damage in a system that is becoming increasingly transparent. On the flip side, compliant organizations will benefit from greater trust among employees and improved relations with regulators."

This move is becoming increasingly imperative as Nigeria’s pension industry, valued in trillions of naira, though plays a critical role in the nation’s financial system,  yet, questions of trust have long dogged the sector. By requiring PFAs to disclose not just returns but also risk measures like the Sharpe Ratio, PenCom is pushing the industry closer to international standards.

As transparency builds confidence—not only among contributors but also build  confidence within the wider investment community.

With clearer benchmarks and consistent reporting, pension funds are better positioned to attract long-term capital, support infrastructure projects, and contribute to national economic growth.






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