Omotayo Adigun
The Nationwide Pension Fee (PenCom) has introduced that the whole worth of pension belongings beneath its administration has surpassed the numerous milestone of ₦23 trillion as of February 2025.
This was disclosed by the Director-Basic (DG) of PenCom, Omolola Oloworaran, throughout the first run 2025 consultative discussion board for states and the Federal Capital Territory (FCT) held in Kano on Wednesday.
In her handle, Oloworaran highlighted PenCom‘s enhanced enforcement efforts, which have yielded substantial ends in recovering excellent pension contributions from defaulting employers.
She acknowledged that the fee efficiently recovered a complete of ₦1.58 billion from these employers, demonstrating the company’s dedication to making sure compliance with the Contributory Pension Scheme (CPS).
The DG additionally famous a optimistic development in state remittances, indicating a rising acceptance and adoption of the CPS throughout the sub-national ranges of presidency. This enchancment suggests rising consciousness and dedication to the scheme, which is designed to offer a extra sustainable and dependable retirement system for staff.
Regardless of these notable achievements, Oloworaran acknowledged that challenges persist within the full implementation of the CPS throughout all states. She revealed that, as of the reporting interval, solely 25 states and the FCT have handed the required legal guidelines to implement the contributory pension scheme.
An additional six states are presently working hybrid pension schemes, which mix components of each the outlined advantages and the CPS, whereas one other six states have payments at superior phases of the legislative course of.
The DG identified particular progress made in a number of states, together with Katsina, Yobe, Bauchi, and Abia. Nonetheless, she emphasised that the total implementation of the CPS stays restricted to only eight states throughout the federation.
To deal with this implementation hole, Oloworaran introduced that PenCom has launched a versatile adoption mannequin. This progressive strategy permits states to begin implementation of the CPS with new staff or these with lower than 10 years of service.
Moreover, PenCom is actively providing technical help to state governments to assist within the complicated means of planning for legacy pension liabilities and transitioning their complete workforce to the CPS in a fashion that ensures long-term {financial} sustainability.
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“With sustained dialogue, technical collaboration, and powerful political will, we’re assured of reaching this purpose,” Oloworaran acknowledged, expressing optimism about reaching full CPS implementation nationwide.
Describing the consultative discussion board as greater than only a routine assembly, the Director-Basic characterised it as “a name to collective motion.”
She urged members to actively interact in sharing concepts and to decide to collaboratively constructing a extra inclusive and strong pension system for all Nigerians.
Additionally talking on the discussion board, the Head of Service in Kano State, Abdullahi Musa, reaffirmed the state’s unwavering dedication to ongoing pension reforms. Musa recommended PenCom for its pivotal position in selling greatest practices inside the pension sector and lauded the discussion board as a vital platform for dialogue, peer studying, and the event of efficient pension insurance policies.
Musa highlighted the numerous strides Kano State has made in restructuring its pension system, notably by way of the adoption of a hybrid mannequin that strategically combines components of the standard outlined advantages scheme with the extra trendy CPS.
He additional emphasised the dedication of the present administration beneath Governor Abba Kabir Yusuf to addressing historic pension arrears and enhancing the general administration of retirement advantages for state staff.
In response to the Head of Service, the Kano State authorities has demonstrably acted on this dedication by disbursing a considerable N16 billion in excellent pension entitlements.
This vital cost represents roughly 40 % of the whole pension liabilities inherited from earlier administrations, showcasing a tangible effort to alleviate the burden on retirees.
