Pensioners left in limbo as states delay implementing laws

By Victor Ahiuma-Young

Thousands of civil servants across Nigeria are facing uncertainty about their retirement benefits because most states have not fully implemented the pension‑reform laws they have already enacted, according to the National Pension Commission (PenCom).

Addressing a consultative meeting with state heads of service, PenCom Director‑General Omolola Oloworaran noted that only seven states and the Federal Capital Territory (FCT) are fully applying the Contributory Pension Scheme (CPS).

She explained that while 30 states and the FCT have passed pension‑reform legislation or adopted hybrid pension schemes, many have failed to put those laws into practice. “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 said.

Oloworaran emphasized that pension reform is not optional; it is a constitutional duty and a crucial element of 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 asserted.

She warned that states that neglect the reforms risk creating hardship for future retirees, adding, “You either get on the train or get hit by the train,” and urged state governments to activate the pension laws already on the books.

The PenCom Director‑General also highlighted the federal government’s commitment to pension reforms, citing the release of N758 billion to clear outstanding pension liabilities.

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

Oloworaran further drew attention to PenCom’s “Pension Revolution 2.0” programme, which aims to improve retiree welfare, expand pension coverage, enhance investment performance, and leverage technology for administration.

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

“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 praised the CPS for increasing transparency and accountability in pension management and urged states that have not yet fully implemented the scheme to make use of PenCom’s technical assistance.

She added that effective pension administration nationwide requires collaboration among ministries, pension bureaus, labour unions, and other stakeholders.

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