The National Pension Commission (PenCom) has urged small and medium enterprises (SMEs) to adopt sound financial management practices by reinvesting part of their profits, building retirement savings and ensuring timely remittance of employees’ pension contributions.
Gatekeepers News reports that Samuel Chigozie Uwandu, PenCom’s Federal Commissioner for Inspectorate, gave the advice on Tuesday at the SME Fair on the second day of the 2026 National Pension Week in Lagos.
Uwandu cautioned entrepreneurs against relying solely on their businesses as a source of financial security in old age, noting that circumstances such as ageing and ill health could affect their ability to remain actively involved in business operations.
“There is often an assumption that as long as the business remains operational, the owner will continue to earn an income. But what happens when age, ill health or other circumstances make it difficult to continue working at the same pace?” he asked.
He encouraged self-employed Nigerians and informal sector operators to take advantage of the Personal Pension Plan (PPP) under the Contributory Pension Scheme to build retirement savings.
“For those operating in the informal sector and for self-employed Nigerians, the Contributory Pension Scheme provides a relevant framework through the Personal Pension Plan (PPP), designed to enable eligible individuals to make pension contributions and build retirement savings,” he said.
The commissioner advised business owners to separate retirement savings from their working capital and seek professional guidance from licensed pension fund administrators.
He stressed that retirement planning should begin early to allow individuals to save consistently, benefit from long-term accumulation and strengthen their financial security.
“The central message is simple: retirement planning should not begin only when a person is approaching retirement. It should begin when there is still time to save consistently, benefit from long-term accumulation and build financial resilience,” Uwandu said.
On business sustainability, he identified proper record-keeping, financial discipline and the separation of personal and business finances as essential practices for SMEs.
He explained that reinvesting profits would enable entrepreneurs to acquire equipment, upgrade technology, train employees and explore new markets, thereby improving their competitiveness and long-term growth prospects.
“Where profits are consumed entirely by immediate personal needs, the business may struggle to expand or withstand unexpected challenges,” he said.
“But where a business owner saves and reinvests deliberately, the enterprise has a better opportunity to grow, become more competitive and generate income over the long term.”
Uwandu also encouraged SMEs to fulfil their tax obligations, while urging the government to provide an enabling environment for businesses to thrive.
Addressing employers, he emphasised the need for strict compliance with pension regulations, particularly the timely remittance of contributions deducted from employees’ salaries.
He warned that delays in remitting pension contributions could undermine workers’ retirement security.
“Pension contributions deducted from employees’ salaries must be treated with the seriousness they deserve and remitted in accordance with the laws of the federal government of Nigeria and the state government in the various jurisdictions they do business in,” he said.
The PenCom commissioner described pension compliance as a fundamental responsibility employers owe their workers, noting that employees play an important role in building successful enterprises.
“Employees are not simply a cost of doing business. They are partners in building the enterprise. Their labour, skills and commitment contribute directly to business success,” he said.
He added that ensuring workers enjoy financial security and dignity after years of service should form part of employers’ responsibilities.
