By Hassanat Adebowale
The House of Representatives Committee on Federal Capital Territory (FCT) Area Councils and Ancillary Matters has launched an investigation into the alleged failure of the six Area Councils to remit pension contributions to the Area Council Staff Pension Board.
The decision was made during the 2024 budget performance review and the defense of the 2025 budget estimates for all agencies within the councils. Committee Chairman, Rep. Fred Agbedi (PDP-Delta), requested detailed records of the pension contribution remittances to understand why the councils are defaulting.
“Provide us with the details so we can determine why the area councils are not remitting the contributions. The committee should investigate the failure of remittance from the area councils to the pension account,” Agbedi stated.
He also mentioned that the committee plans to conduct budget oversight for all agencies to ensure the proper use of taxpayers’ money.
Earlier, Mr. Suleman Abdulrahman, Director of the FCT Area Councils Staff Pensions Board, informed the committee that remittances were not made regularly. Abdulrahman explained that according to the law, deductions from salaries should be remitted within seven days after payment. However, this has not been the case, with remittances sometimes delayed for two to three months.
“The staff pay their 8% employee contribution, while the employer’s 10% contribution should be remitted to their Pension Fund Administrator (PFA) by the area councils,” Abdulrahman said.
The investigation brings up serious concerns under the Pension Reform Act, 2014, which sets the rules for pension administration in Nigeria. The law requires that employers remit contributions within seven days of paying salaries, and failure to comply constitutes a violation.
The National Pension Commission (PenCom) has the power to impose sanctions and penalties on those who don’t comply, including fines, legal action, and even revoking operational licenses for non-compliant entities. If the area councils are found guilty of not remitting the contributions, they could face enforcement actions to recover the outstanding funds and ensure full compliance with pension laws.
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