The National Pension Commission (PenCom) has urged small enterprise homeowners to remit employees’ pension contributions as required by regulation and make retirement planning a precedence quite than rely solely on their companies for earnings in previous age.
Samuel Uwandu, PenCom’s commissioner for inspectorate, gave the recommendation on Tuesday at an engagement with small and medium-sized enterprises (SMEs) and casual sector operators in Lagos, on the second day of the 2026 National Pension Week.
The 2026 National Pension Week is scheduled to run from 26 to 30 October planning and inspiring wider participation in Nigeria’s pension system.
At the occasion, Mr Uwandu mentioned well timed remittance of pension contributions was each a authorized obligation and a duty employers owed employees whose efforts contributed to the success of their companies.
“Pension contributions deducted from employees’ salaries must be treated with the seriousness they deserve and remitted in accordance with the laws of the Federal Government of Nigeria,” he mentioned.
He warned that delayed or unremitted contributions might undermine employees’ retirement safety and weaken public confidence within the pension system.
“Compliance with pension obligations is not merely a regulatory requirement; it is an expectation and responsibility of business leadership, and respect for the people who help make the business succeed,” he mentioned.
The commissioner mentioned staff’ data, expertise and dedication had been important to enterprise development, including that employers ought to recognise their contributions by assembly their statutory obligations, paying salaries when due and offering secure working situations.
“Employees are not simply a cost of doing business. They are partners in building the enterprise,” he mentioned.
Plan for retirement
Mr Uwandu additionally urged entrepreneurs to put together financially for retirement as an alternative of assuming their companies would proceed producing earnings indefinitely.
He mentioned many enterprise homeowners devoted their best years to constructing their enterprises, reinvesting earnings and supporting their households however paid little consideration to their very own retirement.
According to him, enterprise homeowners ought to contemplate how they’d maintain themselves when age, sickness, financial difficulties or different circumstances made it tough to proceed working.
“As your business grows, you should also begin to prepare for your financial future and retirement,” he mentioned.
He suggested entrepreneurs to domesticate a financial savings tradition, put aside retirement funds individually from their enterprise working capital and discover acceptable long-term financial savings preparations.
Mr Uwandu mentioned the Personal Pension Plan (PPP) beneath Nigeria’s contributory pension framework offers a retirement financial savings possibility for eligible self-employed Nigerians and other people working within the casual sector.
He urged enterprise homeowners to search steering from licensed pension fund directors and PenCom on the preparations relevant to them.
“The central message right here is straightforward: retirement planning shouldn’t start solely when an individual is approaching retirement age.
“It should be gained when there is still time to save money, contribute, benefit from long-term accumulation, and build financial resilience,” he mentioned.
He added that entrepreneurs ought to intention to retire with dignity quite than stay fully depending on their companies or monetary help from their households.
Prioritising sustainable development
Beyond pension compliance, Mr Uwandu urged small enterprise homeowners to strengthen their monetary administration practices to enhance the sustainability of their enterprises.
He suggested them to keep correct monetary information, separate private funds from enterprise accounts, handle earnings and expenditure responsibly, and reinvest an affordable portion of their earnings into their companies.
READ ALSO: PenCom pushes early pension savings among Gen Z, informal workers
He mentioned reinvestment might assist enterprise homeowners purchase higher gear, enhance expertise, broaden stock, prepare staff and attain new markets by means of promoting.
“Where profits are consumed entirely by immediate personal needs, the business may struggle to expand or withstand unexpected challenges,” he mentioned.
However, he pressured the necessity to stability reinvestment with private monetary wants, noting that sustainable companies ought to help each development and the long-term safety of their homeowners.
Mr Uwandu additionally known as on the federal government to present an enabling atmosphere for companies, noting that SMEs contribute to employment, expertise improvement, native manufacturing and financial actions throughout communities.
He inspired members to use the engagement to share experiences, determine sensible options and commit to actions that might enhance the prospects of Nigerian companies and the welfare of their staff.
Discover extra from Premium Times Nigeria
Subscribe to get the newest posts despatched to your electronic mail.
