PenCom Urges States to Fully Implement Pension Reforms

The National Pension Commission (PenCom) has called on state governments across Nigeria to fully implement contributory pension reforms in order to safeguard workers’ retirement benefits and strengthen pension administration nationwide.

PenCom Director-General, Omolola Oloworaran, made the appeal during a consultative meeting in Abuja with heads of service from states yet to fully implement the Contributory Pension Scheme (CPS) and other approved pension reforms.

Oloworaran described pension reform as a constitutional obligation rooted in Section 210 of the 1999 Constitution, which guarantees pension rights for public servants at both federal and state levels. She stressed that effective implementation of the CPS would improve transparency, accountability, and sustainability in pension management.

According to her, although 30 states and the Federal Capital Territory have enacted pension reform laws, only seven states and the FCT are fully implementing the reforms. She warned that many workers remain vulnerable due to poor remittances, inadequate funding, and weak pension administration structures.

The PenCom boss noted that the old pension structure was associated with delayed payments, mounting liabilities, and uncertainty for retirees, adding that the contributory pension system was introduced to address those challenges through a more structured and sustainable framework.

She further stated that the success of pension reforms largely depends on the commitment of state governments and pledged continued technical support from PenCom to states willing to strengthen implementation efforts.

Oloworaran also referenced the recent approval of N758 billion by President Bola Tinubu for the settlement of outstanding federal pension liabilities, describing it as part of broader efforts to restore confidence in the pension system.

Speaking at the meeting, Head of the Civil Service of the Federation, Didi Walson-Jack, described pension reform as essential for protecting the dignity of workers after retirement. She said the contributory pension scheme had improved accountability and transparency compared to the previous pension structure.

Walson-Jack urged states to deepen collaboration with PenCom and other stakeholders to ensure reliable pension administration and secure retirement benefits for civil servants nationwide.

The latest appeal comes amid continuing concerns over unpaid pensions, pension arrears, and weak implementation of pension laws in several states across the country.