Pensioners in limbo as states fail to activate laws

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By Victor Ahiuma-Young

Thousands of civil servants across Nigeria face uncertainty over their retirement benefits as most states have failed to fully implement pension reform laws despite enacting the required legislation, the National Pension Commission, PenCom, has said.

Speaking at a consultative session with state heads of service, the Director-General of PenCom, Omolola Oloworaran, lamented that only seven states and the Federal Capital Territory, FCT, are fully implementing the Contributory Pension Scheme, CPS.

According to her, while 30 states and the FCT have enacted pension reform laws or adopted hybrid pension schemes, implementation remains poor in many states, saying “Out of the 36 states with pension reform laws, only seven states and the FCT are fully implementing them. That leaves 23 states where the laws are inactive or only partially implemented, leaving civil servants uncertain about their retirement future.”

Oloworaran stressed that pension reform was not optional, describing it as a constitutional obligation and a key requirement for fiscal sustainability.

“The challenge is no longer about passing laws. The real issue is implementation — regular remittance of pension contributions, funding accrued rights, and establishing functional pension institutions,” she stated.

She warned that states that fail to implement the reforms risk creating hardship for future retirees, stressing that “You either get on the train or get hit by the train,” she said, urging state governments to take urgent steps to activate pension laws already in place.

The PenCom Director General noted that the Federal Government had demonstrated commitment to pension reforms through the release of N758 billion to settle outstanding pension liabilities.

“I can confidently say there are currently no outstanding pension liabilities at the federal level,” she added.

Oloworaran also highlighted PenCom’s “Pension Revolution 2.0” initiative, which focuses on retiree welfare, wider pension coverage, stronger investment performance, and technology-driven administration.

Earlier, the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson-Jack, described pension reform as critical to public sector credibility and workers’ welfare.

“Every civil servant who dedicates the best years of his or her life to national service deserves the assurance that retirement will be a period of stability and dignity,” she said.

Walson-Jack commended the CPS for improving transparency and accountability in pension administration and urged states yet to fully implement the scheme to take advantage of PenCom’s technical support.

She added that collaboration among ministries, pension bureaus, labour unions, and other stakeholders was necessary to ensure effective pension administration nationwide.

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