NICN Judge Warns Nigerian Employers: Underpayment of Pensions Carries Legal Consequences

Justice Olufunke Anuwe of the National Industrial Court of Nigeria (NICN) has issued a strong warning to Nigerian employers who underpay or fail to remit employee pension contributions, stating that such violations are not only unlawful but also come with serious legal consequences.

Delivering her remarks at the Fourth Forum of Company Secretaries and Legal Advisers in the Pension Industry, organized by the National Pension Commission (PenCom), Justice Anuwe emphasized that non-compliance with the Contributory Pension Scheme (CPS) is a constitutional breach and leaves employers with limited legal defenses when matters are brought before the court.

“Employers’ failure to remit or under-remit pension contributions is one of the most contested issues in the pension sector,” Justice Anuwe said.
“Nigerian courts have consistently upheld the rights of PenCom and contributors to recover unpaid pensions through legal action.”

She also highlighted that statutory penalties and accrued interest are often enforced by the courts to ensure compliance and accountability.

Addressing concerns about legal jurisdiction, Justice Anuwe affirmed that the NICN remains the competent court for all pension-related disputes, ensuring streamlined adjudication under one specialized tribunal.

Omolola Oloworaran, Director General of PenCom, lauded the judge’s presentation, stating that her legal interpretations help clarify key aspects of Nigeria’s evolving pension framework.

“Justice Anuwe’s insights offer stakeholders critical guidance, especially amid recent reforms and increasing court rulings shaping pension compliance,” Oloworaran remarked.

She emphasized the forum’s importance in advancing corporate governance and legal literacy in the pension sector, noting that recent enforcement efforts by PenCom, including a renewed directive just two days ago, underline the urgency of employer compliance.