The National Pension Commission (PenCom) has disclosed that only seven states and the Federal Capital Territory (FCT) are fully implementing the Contributory Pension Scheme (CPS), despite 30 states having enacted pension reform laws.
Speaking on Thursday during a consultative session with state heads of service, the Director-General of PenCom, Ms. Omolola Oloworaran, said the major obstacle to pension reform in Nigeria is no longer legislation, but weak implementation across the states.
“Out of the 36 states with pension reform laws on their books, only seven states, together with the Federal Capital Territory, are fully implementing these laws. Yes, just seven,” Oloworaran said.
“That leaves 23 states whose laws are written, inactive, or only partially being implemented, with civil servants’ retirement future hanging in the balance, not because there is no law, but because the law has not been activated.”
According to her, 30 states and the FCT have adopted either the CPS or a hybrid contributory defined benefits scheme, while six states are yet to pass pension reform legislation.
Oloworaran described pension reform as both a constitutional and fiscal obligation, citing Section 210 of the 1999 Constitution.
“The challenge is no longer the enactment of laws. The challenge is the discipline of execution, regular remittance of contributions, funding of accrued rights, and establishment of functional institutions,” she said.
She added that PenCom convened the meeting with representatives from 29 states to accelerate implementation efforts and strengthen compliance with pension laws nationwide.
“You either get on the train or you get hit by the train,” the PenComDirector-General warned, stressing that failure to act could jeopardisethe retirement security of public sector workers.
Oloworaran also stated that the Federal Government had demonstrated commitment to pension reforms through the release of ₦758 billion to clear outstanding pension liabilities.
“I can say today without fear of being misquoted that there are no outstanding pension liabilities at the federal level,” she said.
She further highlighted PenCom’s “Pension Revolution 2.0” initiative, which focuses on retiree welfare, broader pension coverage, improved investment returns, and technology-driven pension administration.
Also speaking at the event, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, said pension reform remains critical to workforce management and the credibility of the public service.
“Every civil servant who gives the best years of his or her life to the service of our nation deserves the assurance that retirement will not become a season of anxiety, but a period of stability, honour, and peace,” she said.
Walson-Jack noted that the contributory pension scheme has strengthened transparency, accountability, and sustainability in pension administration.
She urged states yet to fully implement the scheme to take advantage of PenCom’s technical support to improve compliance and enhance workers’ welfare.
“Most of the states have the law in place, and it is just about implementation,” she said.
The Head of Service also underscored the importance of collaboration among ministries of finance, pension bureaus, and labour unions to ensure efficient pension administration across the country.
