ONLY SEVEN STATES, FCT FULLY IMPLEMENTING PENSION LAWS – PENCOM DG
Read Time:3 Minute, 16 Second
By; Ganiyat Sunmola
The National Pension Commission (PenCom) has disclosed that only seven states in Nigeria, alongside the Federal Capital Territory (FCT), are fully implementing pension reform laws, despite most states having already passed enabling legislation.
The Director-General of PenCom, Omolola Oloworaran, made the disclosure on Thursday in Abuja during the inaugural bi-annual consultative session for Heads of Service from states that are yet to fully adopt or operationalise the Contributory Pension Scheme (CPS) or the Contributory Defined Benefits Scheme.
Oloworaran explained that although pension reform laws exist in 36 states, full implementation remains limited to just seven states and the FCT, leaving a wide gap in compliance across the federation.
She noted that 30 states, in addition to the FCT, have enacted laws establishing either the contributory pension scheme or contributory defined benefits system. However, six states still have pension reform bills pending before their respective State Houses of Assembly.
According to her, 23 states either have inactive pension laws or are only partially implementing them, a situation she said puts the retirement security of thousands of public servants at risk.
“That leaves 23 states whose laws are written, inactive, or only partially implemented. Twenty-three sets of public servants whose retirement future hangs in the balance, not because there is no law, but because the law has not been activated,” she said.
The PenCom boss stressed that pension reform is not optional but a constitutional and fiscal responsibility anchored in Section 210 of the 1999 Constitution, which guarantees pension rights for public servants.
She explained that the old defined benefit system had become unsustainable, creating uncertainty and financial strain, which necessitated the shift to a contributory model designed to ensure transparency, accountability, and long-term sustainability.
Oloworaran said the major challenge facing many states today is no longer the enactment of pension laws but the discipline required for full implementation, particularly the regular remittance of contributions and proper funding of accrued pension rights.
“Across our states, the challenge is no longer the enactment of laws. The challenge is the discipline of execution. It is the regular and timely remittance of contributions. It is the adequate and consistent funding of accrued pension rights,” she said.
She urged Heads of Service to treat pension reform as part of their governance legacy, noting that effective implementation would determine whether workers retire with dignity and financial security.
The PenCom DG also stated that the commission is working towards achieving “zero pension liabilities” and ensuring dignity in retirement for all Nigerian workers.
She further disclosed that President Bola Tinubu approved the release of N758 billion in 2025 to clear outstanding pension liabilities at the federal level, adding that there are currently no unpaid pension obligations at the federal level.
Oloworaran also highlighted ongoing reforms under what she described as “Pension Revolution 2.0,” which focuses on improving retiree welfare, expanding pension coverage, boosting investment performance, enhancing digital service delivery, and strengthening the role of pension funds in national development.
She added that recent federal approval for exit benefits for treasury-funded civil servants under the CPS has helped address long-standing concerns about the attractiveness of the scheme.
Also speaking, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described the engagement as timely and necessary, saying it would help deepen understanding and improve implementation across states.
She said pension reform is not only an administrative issue but also one of dignity, trust, and fairness, as workers deserve assurance of security after retirement.
Walson-Jack urged states to use the forum for honest dialogue and collaboration, noting that effective implementation of pension reforms requires cooperation among PenCom, state governments, finance ministries, pension bureaus, labour unions, and other stakeholders.
The meeting also comes amid continued growth in Nigeria’s pension sector, with total pension assets reaching N28.04 trillion as of January 2026, reflecting steady expansion in contributions and investment returns.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0