PenCom, NERC Crack Down on GENCOs, DISCOs Over Pension Arrears

By Oluwakemi Kindness

The National Pension Commission (PenCom) has sought the intervention of the Nigerian Electricity Regulatory Commission (NERC) to compel electricity Generation Companies (GENCOs) and Distribution Companies (DISCOs) to remit outstanding pension contributions owed to their employees.

PenCom’s Director General, Ms. Omolola Oloworaran, stated this when she led a delegation to seek NERC’s intervention in addressing the non-compliance by 16 electricity companies.

According to a statement by the commission, the firms have failed to remit billions of naira in pension contributions and associated penalties, despite multiple warnings and enforcement attempts and even an ordered out of court settlement.

Oloworaran urged NERC to reinforce compliance with the Pension Reform Act 2014 (PRA 2014) by making the presentation of a valid Pension Clearance Certificate issued by PenCom a mandatory requirement for licensing and other regulatory approvals granted to power companies.

She emphasised that as the regulator of the electricity sector, NERC has a critical role in ensuring that private entities under its jurisdiction—including GENCOs and DISCOs—fulfil their statutory obligation to deduct and remit monthly pension contributions for their employees to their Retirement Savings Accounts (RSAs).

PenCom had deployed Recovery Agents to establish and recover outstanding pension contributions across the private sector.

However, Oloworaran expressed concern that several electricity companies have continued to ignore their obligations even after these Recovery Agents established their liabilities.

In response, NERC Chairman, Egr. Sanusi Garba, assured PenCom of the Commission’s readiness to collaborate in enforcing pension compliance.

He stressed the need for a thorough reconciliation of all outstanding liabilities and pledged NERC’s support in finding a sustainable resolution to the issue.

To facilitate ongoing collaboration, PenCom and NERC established a joint working group tasked with addressing the pension compliance challenges in the power sector.