The Organised Private Sector of Nigeria (OPSN)—a joint coalition including the Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), and NACCIMA—has issued a stern warning against the National Pension Commission’s (PenCom) proposed increase in statutory pension contribution rates.
PenCom Director General Omolola Oloworaran unveiled the planned amendment to the Pension Reform Act (PRA) 2014 at the 2026 Pension Consultative Forum in Lagos. The proposal includes an additional mandatory 3% annual contribution of the total wage bill to boost retirement benefits.
Key Concerns Raised by Employers
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Current Pension Baseline: Employers currently contribute 10% and employees contribute 8% of monthly emoluments, totaling an 18% statutory obligation—a rate comparable to the global OECD average of 18.8%.
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Payroll Inflation & Job Security: OPSN warns that imposing additional mandatory payroll costs amid existing economic headwinds will force employers to freeze hiring, delay wage reviews, outsource roles, or downsize workforces.
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Severe Burden on MSMEs: Smaller enterprises face the highest risk of default and operational failure due to already elevated energy tariffs, fluctuating exchange rates, and tight monetary conditions.
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Premature Announcement: NECA Director-General Adewale-Smatt Oyerinde noted that announcing rate hikes before finalizing stakeholder consultations undermines social dialogue and enterprise planning.
