In a decisive move to enforce compliance and strengthen Nigeria’s pension and insurance systems, the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) have jointly directed all insurance firms to cease doing business with employers defaulting on pension and life insurance obligations.
The directive, issued through a Joint Circular signed by Abdulrahaman Muhammad Saleem, Director of Surveillance at PenCom, and Talmiz Usman, Director of Legal, Enforcement and Market Development at NAICOM, represents one of the most far-reaching enforcement collaborations between the two regulators.
According to the circular, the action seeks to ensure full adherence to the Pension Reform Act (PRA) 2014 and the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, both of which are central to protecting workers’ benefits and strengthening corporate governance in the insurance sector.
“The era of partial compliance is over,” said Saleem. “Any company that fails to meet its pension or insurance obligations will not be permitted to transact business within the regulated space. We are embedding compliance at every level of operation.”
