Tension is mounting across Nigeria’s electricity industry as workers raise alarms over pension contributions deducted from their salaries but left unremitted for as long as 82 months. The issue has become a major source of concern for employees who have spent years maintaining turbines, climbing poles, and ensuring electricity supply amid operational challenges.
Brandspur Banking News Desk reports that the crisis centres on allegations that some power generation and distribution companies deducted retirement contributions from employees’ salaries without transferring them to their Retirement Savings Accounts (RSAs), as required by the Pension Reform Act, PRA 2014. Under the law, employees contribute 8% of their monthly salary while employers contribute a minimum of 10%, with remittances expected within seven working days of salary payment.
Workers say the unremitted contributions, in some companies including Kaduna and Kano DISCOs, stretch back nearly seven years, denying them investment returns and weakening long-term retirement security. Dominic Igwebike, Acting General Secretary of the National Union of Electricity Employees (NUEE), emphasised: “This is not just about delayed payments. These are funds already deducted from workers’ salaries. They belong to the workers.”
In response, NUEE issued a 21-day ultimatum to the Minister of Power in January 2026, urging the government to resolve outstanding pension arrears. While the notice stressed it was not a threat, it signalled readiness to employ lawful industrial actions if the matter remained unresolved.
Sani Bala, Public Relations Officer at Kano DISCO, acknowledged the arrears but noted that discussions with organised labour were ongoing. He added, “In fact, we have started defraying the liability gradually,” signalling initial steps toward compliance.
Experts warn that prolonged non-remittance of pensions could have severe implications for mid-career employees, eroding retirement benefits and forcing families to rely on personal savings or state support. Analysts also point to structural weaknesses in enforcement and financial management as factors exacerbating the problem.
The situation highlights persistent challenges in Nigeria’s power sector governance, where employee welfare and regulatory compliance continue to be critical yet under-monitored areas. The resolution of the pension backlog remains crucial to restoring trust among electricity sector workers and ensuring long-term sector stability.
