Sixteen Power Firms Owing Billions In Pension Liabilities – PenCom
…Seeks NERC Support To Recover Pension Contributions From GenCos, DisCo
The National Pension Commission (PenCom) has sought the intervention of the Nigerian Electricity Regulatory Commission (NERC) to address the growing issue of unpaid pension contributions by electricity Generation Companies (GENCOs) and Distribution Companies (DISCOs).
During a courtesy visit to NERC’s headquarters, PenCom’s Director General, Ms. Omolola Oloworaran, led a delegation to raise concern over the persistent non-compliance by 16 electricity companies that have defaulted in remitting billions of naira in pension contributions and accrued penalties.
Despite numerous enforcement efforts, including official warnings and an ordered out-of-court settlement process, these companies have yet to fulfil their pension obligations.
Speaking at the meeting, Oloworaran urged NERC to take concrete regulatory measures to compel electricity companies under its jurisdiction to comply with the provisions of the Pension Reform Act 2014.
One of the proposals presented was for NERC to make the possession of a valid Pension Clearance Certificate a mandatory condition for issuing or renewing licenses and other regulatory approvals.
She pointed out that the non-remittance of pension contributions by power firms is a direct violation of employees’ rights and undermines the objectives of the contributory pension scheme.
According to her, GENCOs and DISCOs are obligated by law to deduct monthly pension contributions from employees’ salaries and remit them, along with employer contributions, to their respective Retirement Savings Accounts (RSAs).
Oloworaran also informed the NERC leadership that PenCom had previously deployed Recovery Agents to conduct audits and determine the extent of non-compliance in the private sector.
The Recovery Agents successfully established the outstanding liabilities of several electricity companies, yet many of these firms have continued to disregard their statutory duties.
In his response, NERC Chairman, Engr. Sanusi Garba, acknowledged the seriousness of the issue and expressed the Commission’s commitment to working with PenCom in resolving it.
He called for a thorough reconciliation of all outstanding pension liabilities in the electricity sector and pledged NERC’s support in implementing a sustainable solution that prioritizes the welfare of employees.
As part of the outcomes of the meeting, both commissions agreed to establish a joint working group that will focus on addressing the pension compliance gap within the power sector.
The group is expected to develop strategies for improving enforcement, ensuring accountability, and facilitating effective collaboration between the two regulatory agencies.
The move by PenCom to engage NERC signals a coordinated regulatory approach to enforcing compliance with pension laws and ensuring that workers in Nigeria’s power sector are not denied the retirement benefits to which they are entitled.
Sixteen Power Firms Owing Billions In Pension Liabilities – PenCom is first published on The Whistler Newspaper
