Pension Clearance Certificates, Pension Revolution 2.0 Reforms Boost Compliance, Drive Record Recoveries
The National Pension Commission (PenCom) has reported a significant surge in pension compliance, recovering N4.04 billion from defaulting employers between January and November 2025, a 180% increase compared to the N1.44 billion recovered in all of 2024.
Director General of PenCom, Omolola Oloworaran, revealed the figures during an interactive session with journalists in Lagos, attributing the sharp rise to strengthened enforcement measures and tighter compliance rules introduced under the Commission’s Pension Revolution 2.0 reform agenda.
PenCom noted that enforcement efforts peaked in Q3 2025, when N2.06 billion was recovered from erring employers almost 150% of the total recoveries for 2024.
A major driver of improved compliance was a circular issued in Q2 2025, which linked the issuance of Pension Clearance Certificates (PCCs) to participation in the pension industry value chain.
“Any organisation without a valid pension clearance certificate cannot transact business with pension fund administrators or attract pension fund investments. When compliance is tied to real economic consequences, behaviour changes,” Oloworaran explained.
The impact of this measure was immediately evident: the average quarterly value of PCCs issued jumped from N150 billion prior to the circular to N233 billion in Q3 2025, significantly exceeding previous levels.
PenCom emphasised that the recoveries reflect a broader shift in employer behaviour, with more organisations regularising outstanding pension contributions to avoid sanctions and business restrictions.
These compliance efforts form part of wider reforms aimed at protecting workers’ retirement savings, building trust in the contributory pension scheme, and strengthening governance across the industry.
The Commission reaffirmed its commitment to sustained enforcement, warning that non-remittance of pension contributions will no longer be tolerated. Ongoing reforms are also designed to ensure that pension contributions are remitted promptly, retirees are paid without delay, and Nigeria’s pension system remains transparent, inclusive, and resilient.
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