Judge: ‘Employers Liable for Pension Defaults’
By Patience Ikpeme
Employers who fail to remit or under-remit pension contributions are fully liable under Nigerian law and have minimal legal grounds for defense in court.
This disclosure was made by Hon. Justice Olufunke Yemi Anuwe of the National Industrial Court of Nigeria (NICN).
Speaking at the Fourth Forum of Company Secretaries and Legal Advisers in the Pension Industry, held in Abuja, Justice Anuwe said the issue of non-compliance with pension contributions remains a major subject of litigation in Nigeria’s pension sector.
She pointed out that courts have consistently ruled in favour of the National Pension Commission (PenCom) and pension contributors in such cases. “Nigerian courts have consistently upheld the rights of PenCom and pension contributors to initiate legal proceedings to recover unremitted or under-remitted funds. Statutory penalties and interest have also been enforced to ensure compliance,” she stated.
Justice Anuwe clarified that while courts respect the technical competence of PenCom in regulating the Contributory Pension Scheme (CPS), the Commission is expected to operate within the legal framework provided by its enabling laws. She stressed the judiciary’s commitment to holding employers accountable while also ensuring that regulators act in accordance with their statutory responsibilities.
Turning to the constitutional basis of pension entitlements, Justice Anuwe referenced Section 210 of the 1999 Constitution (as amended), which guarantees the payment of pension and gratuity to eligible persons. “It is a constitutional right,” she said. “Pensioners must be paid for the service they have rendered.”
On the question of legal jurisdiction, she confirmed that the National Industrial Court is the proper venue for adjudicating pension-related disputes. “Judicial precedents have affirmed the NICN’s exclusive jurisdiction as established by the Constitution and the National Industrial Court Act,” she noted. According to her, this legal clarity has helped streamline the resolution of pension disputes and has strengthened adjudication under a specialised court.
Justice Anuwe also addressed the judiciary’s broader involvement in pension-related cases, particularly concerning gratuities, accrued rights, and the transition from the old to the new pension systems. She explained that the Pension Reform Act (PRA) does not apply retroactively unless it is specifically stated in the law. “Contributions and liabilities take effect from the commencement date of the Act,” she said.
She stated that the courts play a crucial role in maintaining integrity in the pension system by ensuring that the PRA and its accompanying regulations are interpreted and enforced with fairness, transparency, and accountability.
In her welcome address, the Director General of PenCom, Ms. Omolola Oloworaran, expressed gratitude to Justice Anuwe for her comprehensive legal insights. She noted that the Judge’s perspectives provided stakeholders in the pension industry with a clearer understanding of the legal interpretation of the PRA and how it continues to influence the sector.
Ms. Oloworaran said the presence of the judge at the Forum was timely, given ongoing efforts to enhance corporate governance in the pension industry and the growing number of court decisions shaping the implementation of pension laws and regulations.
The Forum was organised by PenCom to foster dialogue among legal professionals within the pension sector and to equip them with current legal knowledge essential for navigating emerging issues and complex compliance matters. It brought together company secretaries, legal advisers, regulators, and other stakeholders committed to upholding the integrity of Nigeria’s pension administration.
