The Nigerian Pension Commission (PenCom) on Wednesday reported that only 17 of the country’s 36 states are currently implementing the Contributory Pension Scheme (CPS).
The commission highlighted that 12 states have yet to commence the scheme, while seven are in different stages of setting up their pension bureaus.
Speaking at the Second Run 2025 Consultative Forum for States and the FCT in Benin, Edo State, PenCom also announced that the existing micro-pension plan for informal sector workers is being redesigned and rebranded as the Personal Pension Plan, aimed at including millions of Nigerians in the informal sector.
In her welcome remarks, the Director-General of PenCom, Omolola Oloworaran, praised President Bola Tinubu for approving a ₦758 billion bond through the Federal Executive Council to settle legacy pension liabilities, including accrued rights, pension increases, and the minimum pension guarantee.
Represented by the Commissioner for Inspectorate, Samuel Uwandu, Oloworaran said, “Today, under the CPS, that promise is being kept for over 10.9 million workers at the Federal, State, and Private Sector levels, with pension assets now topping ₦26 trillion, fueling our nation’s development. But our mission as an industry is not complete.
“The success of this national reform rests on its implementation in every State, Local Government, and across the Informal Sector. This Forum is the engine of that collaboration.
“This November marks one year since I assumed office as Director General of the National Pension Commission. It has been a year of deliberate reform, focused on strengthening governance and expanding the value of the pension system for all Nigerians.
“17 states out of the 36 states in the country are currently implementing the contributing pension scheme. Twelve states have not started at all, while seven states are at various stages of establishing their pension bureaus.”
She added that over the past year, the commission had ensured timely payment of accrued pension rights, reinstated gratuity payments for federal civil servants under the CPS, and introduced a new pension contribution remittance system to prevent errors and delays, among other initiatives.
Oloworaran emphasized that the success of Nigeria’s pension system relies on sub-national governments fully implementing the CPS/Contributory Defined Benefit Scheme (CDBS) and commended states that have enacted pension laws and begun contribution remittances for their employees.
In a presentation titled “Recent Developments in the Pension Industry,” the Acting Head of Corporate Communications at PenCom, Ibrahim Buwai, said the informal sector scheme provides a flexible framework, enabling participants to contribute at their own pace and accumulate retirement savings regardless of employment type.
Declaring the two-day forum open, Governor Monday Okpebholo, represented by the Secretary to the State Government (SSG), Musa Ikhilor, affirmed his administration’s support for the contributory pension scheme. He noted that the state awaited a report on the scheme and was ready to implement its recommendations.
He further highlighted that the administration had disbursed ₦3 billion out of the ₦5 billion owed to staff of the state-owned College of Education who were disengaged when the school was taken over by the federal government.