Only 10,541 Nigerian companies have pension and insurance coverage for workers – PenCom

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PenCom

PenCom revealed that only 10,541 companies in Nigeria have complied with the country’s statutory laws on compliance with pension and insurance coverages and have been licensed to do business with the government.

The commission that revealed it in its quarterly report on the “Issuance of Pension Clearance Certificates,” said the certificates issued to them authorized them to do business with federal government agencies.

“The commission received 11,200 requests from private sector organizations for the issuance of pension clearance certificates. Of these, CCPs have been issued to 10,541 organizations, while 659 applications are in the process of being approved as of March 31, 2022,” the commission said.

“Records showed that the 10,541 organizations paid a total sum of N59.39 billion into their employees’ retirement savings accounts.”

The commission, in a circular to the general public, suppliers, contractors or consultants bidding or seeking a contract or business from all federal government departments, departments and agencies, said they must comply fully with the provisions of the 2014 pension reform law.

As a result, the regulatory agency said the commission issued annual pension discharge certificates to eligible organizations.

“MDAs are reminded to ensure that only pension discharge certificates issued by the commission are accepted as proof of compliance with the provisions of the PRA 2014,” he said.

The commission said companies must provide proof of payment of monthly pension contributions for all employees.

It specifies that they must provide proof of a group life insurance policy for employees, specifying the number of lives and the sum assumed.

In the directive, the commission stated that, in accordance with the provisions of section 4(5) of the 2014 Act and section 5.5 of the life insurance policy guidelines for employees, Labor employers covered by the PRA 2014 were required to submit copies of the insurance certificates along with the schedule of benefits to the commission.

According to the commission, total assets under the contributory pension scheme stood at N13.88 billion in March.

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