Two government agencies have teamed up to protect the retirement savings of Nigerian workers. The Kano State Internal Revenue Service (KIRS) and the National Pension Commission (PenCom) have agreed to work together. Their goal is to make private companies in Kano follow the country’s pension laws. Consequently, employers who have ignored their duties may soon face closer attention.
The partnership has a clear purpose. It aims to protect workers’ retirement benefits and ensure employers meet their pension obligations. In other words, the agencies want every worker to receive what the law promises after years of service.
PenCom explained how it will contribute. The Commission said it would work with KIRS to educate private organisations about the importance of paying workers’ pensions. Education, therefore, sits at the centre of the plan. Many employers still treat pension payments as optional, and awareness campaigns can change that attitude.
The Commission also presented its new pension scheme for people who work in the informal sector. This group includes traders, artisans and other self-employed Nigerians, who often have no retirement plan at all. Moreover, such workers rarely appear on any company payroll. The new scheme gives them a way to save for old age.
KIRS responded positively. The agency assured PenCom of its support and said both bodies would work together to improve pension compliance. Furthermore, it stressed the need to protect the future of workers in the state. A tax agency brings useful strengths to this task. It already deals with businesses and keeps records of many employers.
The pension law gives the agencies a firm basis for action. Under the Pension Reform Act 2014, employers with three or more employees must run a contributory pension scheme. Workers and employers both contribute, and the money goes into the worker’s retirement account. However, some employers deduct contributions and fail to remit them. Others never enrol their staff.
PenCom has already shown that it takes this problem seriously. Last October, it signed a memorandum of understanding with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to recover unremitted pension contributions. At that event, PenCom’s Director-General, Omolola Oloworaran, declared that “every naira deducted by employers must be remitted.” She also said violations are more common in the private sector.
The Commission has also reached out to other bodies. In earlier enforcement drives, it announced new inter-agency collaborations with the Corporate Affairs Commission and the Federal Inland Revenue Service. In addition, it has told pension operators to deal only with vendors who hold a valid Pension Clearance Certificate. Together, these steps show a wider push to close the gaps.
The Kano agreement adds a state-level partner to that effort. Nigeria’s contributory scheme now covers more than 10 million people, according to PenCom. Even so, millions of workers remain outside the system. Many of them work for small firms or earn their living informally. Therefore, local partnerships may help the Commission reach people it could not reach before.
Separately, PenCom has raised its own concerns about Kano’s public-sector arrangement. It has said Kano continues to operate outside the framework of the Pension Reform Act, although the state has made progress on pension legislation. That issue differs from the new private-sector partnership, but it shows that pension reform in the state remains an ongoing conversation.
For workers, the practical question is simple. Will the partnership put more money into their retirement accounts? The answer will depend on follow-through. Employers need clear information, and the agencies need to enforce the law fairly. Ultimately, a worker who spends decades on the job deserves a secure retirement, and this new alliance is meant to help deliver it.
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