Yemisi Izuora
The National Pension Commission (PenCom) has appealed for the timely remittance of employees’ pension contributions, where the relevant pension laws apply and paying Federal and state income taxes as at when due.
The Federal Commissioner Inspectorate of the Commission, Hon. Samuel Chigozie Uwandu, made the appeal during an engagement on Small and Medium Enterprises (SMEs) and the Informal sector in Nigeria.
Uwandu, reminded employers that employees are not simply a cost of doing business but are partners in building the enterprise and labour, skills and commitment contribute directly to business success.
Therefore he noted that their financial security and dignity after years of work should therefore be part of the employer’s responsibility.
According to him, 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.
The Commissioner stated that delayed or unremitted contributions can undermine employees’ retirement security and weaken confidence in the pension system.
He reminded them that compliance with pension obligations is not merely a regulatory requirement and is an expression of responsible business leadership and respect for the people who help make the business to succeed, it is patriotism and a clear definition of being a good citizen.
He asserted the need to recognize the importance of treating employees fairly, paying their salaries when due, providing safe working conditions and meeting applicable statutory obligations.
Uwandu, told them that the gathering provides an opportunity to reflect on the enormous contribution of these businesses to national economy, the challenges they face, and more importantly, the practical support required to help them grow into stronger, more productive and more sustainable enterprises.
“Today, we are not merely discussing businesses. We are discussing livelihoods, families, jobs, innovation, economic resilience and the future of our dear country.
Across Nigeria, as in many other countries, Small and Medium Enterprises and informal businesses form an essential part of everyday economic life. From traders in our markets, artisans in their workshops to farmers, technology entrepreneurs, service providers, small-scale manufacturers, and of course Chartered Accountants; millions of Nigerians depend on these enterprises for their livelihoods.” he said.
These businesses he said create employment opportunities, develop skills, support households, stimulate local production and distribution, and sustain economic activities in communities across the country.
They also provide opportunities for people who might otherwise find it difficult to enter the formal labour market.
We must therefore recognize that behind every small business is an individual or a family making daily sacrifices, taking risks, solving problems and working hard to build a better future for Nigerians.
“Running a business requires discipline, patience, resilience and sound judgement. It requires waking up early, managing limited resources, dealing with customers, paying suppliers, responding to competition and navigating an environment that is not always favorable.
“These daily efforts deserve our recognition and respect. Our responsibility as institutions operating in an Ecosystem; policymakers and development partners is to ensure that the determination of our entrepreneurs is matched by practical support, a fair business environment and opportunities for sustainable growth.” the Commissioner stated.
However, he noted that the success of a business should not be measured only by the ability to survive from one day to the next as the real objective must be to build an enterprise that can grow, withstand economic difficulties, create opportunities for others and provide lasting security for its owner.
This requires a deliberate shift from operating merely to survive towards planning for growth and sustainability.
Business owners must pay attention to proper record-keeping, financial discipline, separation of personal and business finances, customer relations, efficient operations and the responsible management of income and expenditure.
One important aspect of this discipline is the reinvestment of a reasonable portion of business profits back into the business. Reinvestment can provide the resources to acquire better equipments, improve technology, expand stock, train employees, improve service delivery and reach new markets.
Where profits are consumed entirely by immediate personal needs, the business may struggle to expand or withstand unexpected challenges. 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.
Of course, reinvestment must be balanced with the legitimate needs of the business owner and the family. The objective is not to deny the entrepreneur the benefits of hard work, but to establish a sustainable balance between present needs, business growth and future financial security.
As businesses grow, their responsibilities also increase. A stronger business is not defined by profit alone; it is also defined by how it treats its employees, meets its obligations and contributes to society.
Paying taxes as required by law is an important responsibility of businesses operating within the Nigerian economy. Tax revenues support public services, infrastructure and must contribute toward Social and economic development in the communities they operate.
Because we operate in an Ecosystem, the government in turn, should help create an environment in which businesses can thrive.
He also said that another important dimension to business growth that deserves attention is the financial future of the business owner.
According to him, Many entrepreneurs devote their most productive years to building their businesses. They work long hours, reinvest their earnings, support their families and create opportunities for others. Yet, in the process, some give little attention to their own retirement.
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? What happens when the business experiences a prolonged downturn, or when the owner wishes to retire and hand over responsibility to the next generation?
These are relevant questions every business owner should consider before they become urgent.
“As your business grows, you should also begin to prepare for your financial future and retirement. The income generated by your business today should help you build not only a stronger enterprise, but also a more secure future for yourself and your family.
“This means developing a habit of saving, planning for unexpected events, separating retirement savings from working capital and exploring appropriate pension and other long-term savings arrangements.
“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 informed.
Business owners should seek guidance from licensed Pension Fund Administrators and the National Pension Commission on the arrangements applicable to them.
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.
He said that a successful entrepreneur should aspire to retire with dignity, rather than remain entirely dependent on the continued operation of a business or the financial support of family members.