Setraco Nigeria Limited

Relevant and available report from the National Pension Commission, PenCom, has shown that 135 companies are in compliance with the conditions set by the commission and have, therefore, been issued with compliance certificates for 2019. The 135 compliant companies have remitted a total of ₦854.3 million on behalf of 5,210 employees. Topping the list as the company with the largest amount of contribution in 2018 is Setraco Nigeria Limited which contributed ₦521.09 million for its 3,950 employees, while the second largest contributor is AIICO Insurance Plc with a contribution of ₦145.062 million for 259 employees.

Coming third and very close to Aiico is Leadway Assurance Company Limited which contributed ₦137.105 million for 287 employees. It will be recalled that Dangote Cement topped the list of corporate contributors in 2017 as the largest contributor.

Compliance Requirement

PenCom requires and mandates all businesses, contractors, suppliers and consultants bidding or soliciting for contracts from any Federal Government ministries, departments or agencies, (MDAs) to comply fully to the provision of the Pension Reform Act (PRA) of 2014. PenCom also requires ministries, departments and agencies to ensure that only compliance certificates issued by the pension commission are acceptable as evidence of compliance with the provisions of the Pension reform Act, PRA. To be compliant, organisations must submit to the commission a certified list of the employees of the organisation as at the end of the last fiscal year, certified rate of the monthly pension contributions for both the employer and employees. In addition, an organisation seeking to be issued with a compliance certificate should provide the commission with evidence of remittance of the monthly contributions for the last three years if the organisation has been in existence for 5 years or more or for organisations not in existence for 5 years, they are required to show evidence of remittance since they became existent. Also, applicants for compliance certificate are required to provide evidence of current group life insurance policy for staff specifying the number of lives and sum assured. Applications can be denied or approved by the Commission and the process takes approximately 15 working days from the date of receipt of application. To make it easy for applicants, the Commission accepts applications in its head office in Abuja or in any of its 6 zonal offices.

Given the stringent conditions for compliance as noted above and the fact that the year 2019 has just begun as well as the tendency for the Commission to regularly update the list of compliant companies, it comes as no surprise that only 135 companies have complied. We will bring you more information on this subject as the data is updated. Meanwhile, congratulations to the first batch of complaint corporate citizens of the Nigerian pension industry. Way to go and Good job.

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