The Organised Private Sector of Nigeria (OPSN) has expressed strong opposition to the National Pension Commission’s (PenCom) suggestion to raise mandatory pension contributions. The coalition, representing major groups like MAN, NECA, NACCIMA, NASME, and NASSI, claims the proposal would damage company stability and harm the workforce.
Currently, the Pension Reform Act 2014 mandates an 18 percent contribution rate—10 percent from employers and 8 percent from employees—which the OPSN argues is already competitive globally. They believe any future changes must be backed by rigorous actuarial data confirming the current model is inadequate without jeopardizing business viability.
NECA Director-General Adewale-Smatt Oyerinde criticized the timing of the announcement, noting that it creates the impression of a fixed outcome before formal discussions have concluded. He emphasized that retirement security strategies must not destabilize the private enterprises that sustain them.
MAN Director-General Segun Ajayi-Kadir highlighted the current economic strain on businesses, including high energy costs and currency instability. He warned that increased mandatory costs could lead to hiring freezes, stagnant wages, or even staff reductions as companies attempt to manage expenses. Further concerns were raised by Sola Obadimu of NACCIMA and Ifeanyi Oputa of NASSI, who noted that such policies would place an undue burden on firms already struggling to survive, particularly smaller enterprises. The OPSN has called on the government to prioritize economic stability and job protection over measures that increase financial obligations for employers.
