From Adanna Nnamani, Abuja
The National Pension Commission (PenCom) has enlisted the Nigerian Electricity Regulatory Commission (NERC) to help enforce pension compliance among electricity Generation Companies (GENCOs) and Distribution Companies (DISCOs) that have defaulted on pension remittances for their employees.
According to a statement from PenCom, it’s Director General, Ms. Omolola Oloworaran, led a delegation to NERC headquarters on Friday, 025, to seek the Commission’s intervention in compelling 16 defaulting power companies to settle billions of naira in unpaid pension contributions and penalties.
Despite multiple enforcement efforts and even an out-of-court settlement, the companies have failed to meet their statutory obligations.
Oloworaran urged NERC to support the enforcement of the Pension Reform Act 2014 by requiring electricity companies to present a valid Pension Clearance Certificate from PenCom as a prerequisite for licensing and other regulatory approvals.
She said that NERC, as the regulator of the electricity sector, plays a vital role in ensuring that GENCOs and DISCOs comply with the law by remitting monthly pension deductions into their employees’ Retirement Savings Accounts (RSAs).
Although PenCom had deployed Recovery Agents to identify and pursue the outstanding liabilities in the power sector, Oloworaran lamented that many companies continued to flout their obligations, ignoring the liabilities established by the agents.
In response, NERC Chairman, Engr. Sanusi Garba, assured PenCom of the Commission’s commitment to collaboration, promising to support reconciliation efforts and work towards a sustainable resolution of the pension backlog.
Both agencies agreed to form a joint working group tasked with addressing the persistent pension compliance issues in the power sector.
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