The Oyo State Government has advanced plans to place civil servants recruited from 2025 under the Contributory Pension Scheme (CPS), with full implementation scheduled to commence on July 1, 2026.
The government said the move is aimed at strengthening pension security and providing workers with a retirement savings system that is transparent and easily monitored.
In a statement issued on Friday in Ibadan, Commissioner for Information Dotun Oyelade explained that the phased approach followed the recommendation of the National Pension Commission (PenCom), which advised that new entrants be enrolled first.
According to Oyelade, this would allow workers to “contribute over a longer period and build substantial retirement savings before retirement, which will span about three decades in many instances.”
He described the CPS as a framework designed to guarantee long-term sustainability, contrasting it with the old Defined Benefit Scheme, which has placed considerable pressure on the finances of many states.
“The Contributory Pension Scheme was introduced as a more sustainable alternative to the old Defined Benefit Scheme, which many states have found difficult to maintain,” Oyelade said.
Addressing concerns over prompt remittances, the commissioner emphasised that the law mandates pension contributions to be remitted within seven days of salary payments. He added that the administration is committed to ensuring the timely remittance of both employees’ and government contributions.
He further noted that each worker would have direct access to a Retirement Savings Account (RSA), enabling contributors to independently verify remittances and ensuring transparency in the management of their pension funds.
On concerns about the commitment of future administrations, Oyelade stated that pension obligations under the CPS are backed by law and subject to the regulatory oversight of PenCom.
According to him, the commission monitors compliance and provides oversight to ensure pension obligations are fulfilled, while the framework itself was designed to promote accountability and continuity beyond any particular administration.
“The government is not abdicating its responsibility. Under the CPS, the government will continue to make its statutory contributions as required by law,” he said.
Oyelade added that the Contributory Pension Scheme remains one of the most dependable mechanisms for safeguarding workers’ financial security in retirement.
