The Organised Private Sector of Nigeria (OPSN) has expressed deep concern over a proposal by the National Pension Commission (PenCom) to increase mandatory pension contributions, including introducing an additional three per cent mandatory annual contribution equivalent to three per cent of total wage bills.
The OPSN is an umbrella body representing the Manufacturers Association of Nigeria (MAN), NACCIMA, NECA, NASME, NASSI, and 25 sectoral employer.
The body warned that while framed as a benefit for retirees, the policy under current economic realities is a “Greek gift” that threatens employment, wage growth, and enterprise survival.
Under the Pension Reform Act 2014, Nigeria’s minimum contribution rate stands at 18 per cent of monthly emoluments (10 per cent from employers, eight per cent from employees).
The OPSN pointed out that this is broadly aligned with the OECD average of 18.8 per cent for average-wage earners in 2024.
The group maintained that Nigeria’s rate cannot be considered inadequate based on percentages alone, insisting that any proposed increase must be backed by Nigeria-specific actuarial evidence demonstrating both necessity and economic viability. Director-General of NECA, Adewale-Smatt Oyerinde, criticised PenCom for announcing proposed rate increases while stakeholder consultations were still ongoing.
