IN THE NATIONAL INDUSTRIAL COURT OF NIGERIA

IN THE LAGOS JUDICIAL DIVISION

HOLDEN AT LAGOS

SUIT NO NICN/LA/319/2024

BEFORE HIS LORDSHIP, HON. JUSTICE (DR.) I. J. ESSIEN

 DATE:21^st July 2026.

 

BETWEEN

NATIONAL PENSION COMMISSION---------------------- CLAIMANT

                                            AND

OPTIMUM PETROLEUM DEVELOPMENT LTD.  --- DEFENDANT

 

JUDGMENT.

The claimants commenced this action by an originating summons dated and filed on the 9/11/2024. In this originating summons the claimant   sought the determination of the following questions from this court;

1.       Whether the Claimant has the rights and powers under the Pension Reform Act 2014 to demand the production of pension records of the Defendant by itself or through its agents to inspect, examine or investigate such records to determine, ensure and enforce due compliance with the provisions mandating pension contribution in favour of its employees?

Upon the determination of this question the claimant seeks the following relief from the court;

1.       A Declaration that the Claimant is empowered and entitled under the Pension Reform Act 2014 to the production,  inspection and examination of the pension records of the Defendant to ensure due compliance with provisions of the Pension Reform Act 2014 on contributory pension and remittances by itself or through its agents.

2.     A Declaration that the Claimant is empowered under the Pension Reform Act 2014 to enforce compliance with the provisions of the Act against the Defendant.

3.     An Order directing the Defendant to grant the Claimant or its agents forthwith access to its relevant pension documents and records for inspection, examination and investigation to determine whether the Defendant has complied with the mandatory pension contribution of its employees from January 2005 to 30 June 2019.

The originating summons is supported by an 11 paragraphs affidavit deposed to by Olubukola Oredugba, a Senior Manager in the South West Zonal Office of the National Pension Commission, the Claimant herein. Attached to the affidavit is Exhibits A,  B and C i.e the Claimant letter to the defendant dated the 20/11/2019 requesting for records of the pension remittance, Letter of the Claimant appointed recovery agent addressed to the defendant and Defendant letter of warning to the Defendant to allow the appointed agent access to the pension remittance record for the period of January 2005 t0 June 2019. Also in support is the written address of the Claimant counsel.

The originating process was served on the Defendant on the 10/12/2025. And thereafter several hearing notices were served on the Defendant who failed to appear before the court nor file any response to this originating summons. The originating summons was heard on the 9/6/2026. The Claimant counsel adopted his process and urge the court to answer the question in the affirmative and resolve the question in favour of the Claimant and grant the reliefs sought in this originating summons.

DECISION OF THE COURT

In this Origination summons the Claimant seeks the determination of the question, ‘Whether the Claimant has the rights and powers under the Pension Reform Act 2014 to demand the production of pension records of the Defendant by itself or through its agents to inspect, examine or investigate such records to determine, ensure and enforce due compliance with the provisions mandating pension contribution in favour of its employees’?

The case of the claimant is that under the powers conferred by the Pension Reform Act 2014, the Claimant appointed Messrs Emeka Ene & Co. as a recovery agent to examine the pension records of the Defendant to determine its compliance in remitting pensions for its employees. That the Claimant issued a letter dated 20 November 2019 Exhibit A to the Defendant introducing Messrs Emeka Ene & Co. as its recovery agent and requesting its cooperation with the recovery agent to conduct a review of its pension records. The Recovery Agent issued a letter dated 28 November 2019 in Exhibit B, informing the Defendant of the intention to conduct an audit of its pension records in line with the Pension Reform Act, 2014.         The agent contacted the Defendant and visited its office to access the pension records, but all efforts proved abortive as the Defendant failed to grant the necessary access. Due to refusal to grant access to the records the Claimant issued a warning letter dated 27 November 2023, requesting the Defendant to grant access to its pension records to the Recovery Agent. The Defendant has still failed and neglected to grant the said access.

The issue sought to be determined in this originating summons raises the question of the duty imposed on the Defendant as private  an employer of labour to comply with the provisions of the Pension Reform Act 2014 and the corresponding duty on the other hand of the claimant as statutory regulator of the contributory pension in Nigeria. Section 1 of the Pension  Reform Act sets out the policy objectives of the Act to include amongst others ‘to establish a uniform set of rules, regulations and standards for the administration and payment, of retirement benefits for the public service of the Federation, the Public Service of the Federal Capital Territory, the Public Service of the State Governments, the public service of the Local Governments Councils and the private sector and to assist individuals to ensure that they save in order to carter for their livelihood during old age.’

To carry out these objectives Section 18 (a) (b) and c empowers the Commission to enforce and administer the provision of the Act, and all other laws on pension and retirement benefits. It is also enjoined to regulate, supervise, and ensure the effective administration of pension matters and retirement benefits. Drawing from the following objectives the Pension Reform Act vest in the Commission enforcement and regulatory functions.

Section 24(a-g) spells out the functions of the Commission to wit:

a.     Formulate, direct and oversee the overall policy on pension matters in Nigeria;

b.    Request or call for information from any employer, Pension Fund Administrator or Pension Fund Custodian or any other person or institution on matters relating to retirement benefits;

c.     Investigate any Pension Fund Administrator, Pension Fund Custodian or other party involved in the management of pension funds;

d.    Impose administrative or civil sanctions or fines or erring employers or Pension Fund Administrators or Pension Fund Custodians.

From the above stated provisions of the Act, it is the duty of the Commission to ensure that the Defendants comply with the payment of contributory pensions at the statutory percentage by the employer and employee as prescribed in the Act.  See the case of  National Pension Commission v. Syndicate Construction & Commercial Ltd. (2025) 1 L.P.R 203. The Defendant as employer of labour is statutorily required under Section 11 of the act to make the deductions and remit same to the employee Pension Fund Administrator.  Where the employer fails or neglects to make the deductions and ensure that due remittance is done, such action will be treated as violation of section 11(7) of the Pension Reform Act which carries with it a penalty for such infraction.  Any infarction or suspicion of the infraction of the Pension Reform Act by the employers of labour must invoke the coercive power of the commission to ensure compliance. To this end the Commission is at Liberty to exercise their power to request or call for information from any employer, Pension Fund Administrator or Pension Fund Custodian or any other person or institution on matters relating to retirement benefits. If the commission suspects that there has been any breach of the provisions of the Pension Act the commission is empowered to investigate any Pension Fund Administrator, Pension Fund Custodian or other party involved in the management of pension funds. The duty of the commission in this regard was emphasised in the case of National Pension Commission V. CITI Trust Pension Managers Ltd & Ors. (2018) LPELR-43768, where the Court of Appeal stated inter alia:

‘It is beyond argument that by the provisions of Pension Reform Act 2004, specifically section 15, the Appellant was established by law and charged with the administration of Pension matters in Nigeria. Its functions and powers are enumerated by sections 20 and 21 thereof, including the establishment of standards, rules and regulations for the management of pension funds under the Act. It also has the powers of investigating any Pension Fund Administrator, custodian or any person involved in the management of pension fund, and the power to impose administrative sanctions’.

The above pronouncement on the duty of the Commission empowers the Commission in the performance of its duties under Section 94(1) a & b of the Act, to examine or investigate under conditions of confidentiality, the books, activities and affairs of any person or body corporate relating to pension funds in accordance with section 92 (1) of this Act or any regulations made under this Act. The commission has a right to gain access to all times to the hard copies and electronic versions of books, accounts, documents and vouchers of any Pension  Fund  Administrator or  Pension  Fund Custodian or any person or body in relation to pension funds.

It is therefore the finding of this court that when the claimant and its agent issued and served on the defendant Exhibits B and C i.e Letter informing the defendant of the intention to conduct the audit of its pension records and the letter requesting the defendant to grant access to the records, the claimant was carrying out its statutory functions as vested in it by the Pension Reform Act. It is the finding of this court that the Defendant cannot ignore, neglect or refuse the demands of the Claimant to inspect its records to ascertain compliance with the management of pension as the Defendant has done in the Exhibit B and C.  The defendant failure to grant the request of the defendant is a flagrant violation of the pension Act as adumbrated in this judgment. To this effect, this court answers the question submitted for determination in this Originating Summons in the affirmative. Accordingly, the court makes the following orders:

1.       A Declaration is made that the Claimant is empowered and entitled under the Pension Reform Act 2014 to the production,  inspection and examination of the pension records of the Defendant to ensure due compliance with provisions of the Pension Reform Act 2014 on contributory pension and remittances by itself or through its agents.

2.     A Declaration that the Claimant is empowered under the Pension Reform Act 2014 to enforce compliance with the provisions of the Act against the Defendant is hereby made.

3.     The Defendant is hereby directed to grant the Claimant or its agents forthwith access to its relevant pension documents and records for inspection, examination and investigation to determine whether the Defendant has complied with the mandatory pension contribution of its employees from January 2005 to 30 June 2019.

The Order hereby made shall be complied with immediately upon service of this order on the defendant.

Judgment is hereby entered.    

 

   

----------------------------------------------------

Hon. Justice (Dr.) I. J. Essien

(Presiding Judge)

 

REPRESENTATION:

E. Ekpeyoung-Oniru Esq. For Claimant

Defendant not represented