Only Seven States Fully Implement Contributory Pension Scheme, Says PenCom

FELICIA ONAH, Abuja

The National Pension Commission (PenCom) has disclosed that only seven states in the country, alongside the Federal Capital Territory (FCT), are fully implementing the Contributory Pension Scheme (CPS), despite widespread enactment of pension reform laws across the federation.

The Director-General of PenCom, Omolola Oloworaran, raised the concern on Thursday during a consultative meeting with state Heads of Service, noting that the persistent gap between legislation and execution continues to undermine pension reform efforts nationwide.

According to her, although 36 states have passed pension reform laws, only seven states and the FCT have fully activated and are running the scheme as required.

“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.

She explained that 23 states are either not implementing the laws at all or are doing so only partially, leaving many civil servants uncertain about their retirement future despite existing legal frameworks.

Oloworaran also noted that 30 states and the FCT have adopted either the CPS or a hybrid contributory defined benefits system, while six states are still at the bill stage awaiting passage.

She stressed that pension reform is not discretionary but a legal and fiscal responsibility, anchored in 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.

The PenCom boss added that the commission convened the meeting with 29 states to push for improved compliance, warning that Heads of Service play a central role in ensuring implementation at the state level.

“You either get on the train or you get hit by the train,” she warned, describing non-implementation as a risk to the welfare of future retirees.

Oloworaran further highlighted the federal government’s commitment to pension reforms, disclosing that N758 billion had been released 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 stated.

She also referenced ongoing reforms under PenCom’s “Pension Revolution 2.0,” aimed at strengthening retiree welfare, expanding coverage, improving investment performance, and deploying technology in pension administration.

Earlier, the Head of the Civil Service of the Federation, Didi Esther Walson-Jack, described pension reform as a key pillar of public service management and institutional trust.

She said civil servants deserved a retirement system that guarantees dignity and stability after years of 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 CPS has improved transparency, accountability, and structure in pension administration, urging states yet to fully implement the scheme to take advantage of PenCom’s technical assistance.

She emphasised that most states already have enabling laws in place, adding that the real challenge remains execution.

The Head of Service called for stronger collaboration among ministries of finance, pension boards, and labour unions to ensure effective implementation.

“This session should not end as another meeting. It should produce renewed commitment, clearer implementation pathways, and stronger partnerships,” she said.