In a major enforcement action aimed at strengthening Nigeria’s pension and insurance systems, the National Pension Commission (PenCom) and the National Insurance Commission (NAICOM) have jointly ordered all insurance companies to stop conducting business with employers who fail to meet mandatory pension and life insurance obligations.
The directive was issued via a Joint Circular signed by Abdulrahaman Muhammad Saleem, Director of Surveillance at PenCom, and Dr. Talmiz Usman, Director of Legal, Enforcement and Market Development at NAICOM. The move marks one of the most robust collaborative enforcement efforts undertaken by both regulatory institutions.
According to the circular, the new order is designed to ensure strict adherence to the Pension Reform Act (PRA) 2014 and the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025. Both laws are key to safeguarding workers’ rights, improving corporate governance and deepening compliance within the financial services sector.
Saleem said the era of lax adherence to statutory obligations had come to an end. “The era of partial compliance is over,” he stated. “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.”
The directive strengthens existing compliance frameworks by placing responsibility on insurance firms to verify that employers are up to date on their statutory remittances before issuing coverage, renewing policies, or entering new contractual arrangements.
Industry watchers believe the move could lead to greater transparency, improve protection for employees and help sanitize Nigeria’s business environment. It also signals renewed coordination between PenCom and NAICOM following long-standing concerns over low compliance among employers, especially in private sector establishments.
Market stakeholders now expect further implementation guidelines, particularly on monitoring, enforcement timelines and penalties for offenders.
