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The National Pension Commission (PenCom) has revealed that states have remitted a total of ₦236.7 billion in pension contributions to Pension Fund Custodians (PFCs) between January 2020 and the second quarter of 2024. This was disclosed by the Acting Director-General of PenCom, Ms. Omolola Oloworaran, during the Third Quarter 2024 Consultative Forum for States and the Federal Capital Territory (FCT), held in Lagos.
The forum, organized by PenCom, brought together heads of Pension Bureaux, Boards, and Commissions responsible for implementing the Contributory Pension Scheme (CPS), as well as heads of service and senior government officials from states that have adopted the scheme.
According to Oloworaran, 25 states, including the FCT, have enacted laws to implement the CPS, while six other states are in the process of passing similar legislation. Additionally, six states have opted for the Contributory Defined Benefits Scheme (CDBS). However, out of the 25 states with CPS laws, only eight have fully implemented the scheme.
Oloworaran also reported that pension fund assets under the CPS have grown significantly, reaching a total of ₦20.79 trillion as of July 2024. She highlighted the benefits of adopting the CPS, particularly for state governments, as it provides access to accumulated pension funds for infrastructure development through the issuance of state bonds. “Five states, including Lagos, Niger, Osun, Ekiti, and Delta, have successfully issued state bonds subscribed to by pension funds, such as the Lekki-Ikoyi Bridge in Lagos,” she noted.
The Acting Director-General emphasized PenCom’s commitment to ensuring that retirees from both the public and private sectors receive their retirement benefits without delay. She outlined the Commission’s ongoing engagement with state governments to expand the coverage of the CPS at the subnational level and address the backlog in accrued rights payments to CPS retirees.
Additionally, PenCom aims to ensure that pensioners under the CPS and other pension arrangements benefit from pension increments as mandated by the Nigerian Constitution.
Looking ahead, Oloworaran announced that starting in December 2025, PenCom will introduce a Recognition and Award System to encourage and reward states for implementing pension reforms. She urged participants at the forum to provide constructive contributions that would support state governments in their roles in pension reform and the implementation process.
This move is part of PenCom’s broader strategy to promote pension reforms across Nigeria, ensuring the effective administration of retirement benefits and the sustainability of pension schemes at the state level.
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