The National Pension Commission has stepped up efforts to enforce compliance with the Contributory Pension Scheme by launching a dedicated monitoring platform aimed at states yet to fully implement the pension system.
As part of the initiative, the commission inaugurated the first Bi-Annual Consultative Session for Heads of Service from non-compliant states, a move designed to accelerate pension reforms at the sub-national level and strengthen retirement security for public sector workers across the country.
The strategic session, which provided a platform for high-level engagement and knowledge sharing, was attended by the Head of the Civil Service of the Federation, Didi Walson-Jack, as Special Guest of Honour.
Her participation highlighted the Federal Government’s commitment to harmonising pension administration and strengthening implementation of the Contributory Pension Scheme across all levels of government.
Speaking on the challenges hindering the scheme’s expansion at the sub-national level, the Director-General of PenCom, Omolola Oloworaran, expressed concern over the slow pace of implementation of the Contributory Pension Scheme by state governments.
“This initiative represents a continued and deliberate effort by PenCom to bridge the implementation gap at the sub-national level. Our goal is to collaborate closely with state governments to build a robust, transparent, and highly sustainable pension system that guarantees the welfare of workers upon retirement,” Oloworaran stated.
She added that the consultative framework was created to provide practical support to states yet to fully implement the scheme, helping them address transition challenges, better understand the fiscal benefits of the Contributory Pension Scheme, and resolve obstacles delaying full adoption.
Data presented at the roundtable showed that although 26 states have enacted pension reform laws, only seven states and the Federal Capital Territory have fully implemented the Contributory Pension Scheme. As a result, 29 states remain behind in implementation, despite having pension laws in place or pending legislation before their respective state assemblies.
In remarks that echoed the regulator’s concerns, delegates and Heads of Service at the session acknowledged that a combination of technical and political challenges has continued to hinder full implementation of the Contributory Pension Scheme in many states.
“Stronger political will, targeted technical support from PenCom, and consistent engagement with organised labour are vital to fast-tracking the implementation process nationwide,” the delegates noted in a joint consensus during the roundtable discussions.
Discussions centred on addressing state-specific challenges, including funding outstanding accrued pension rights and managing the transition from the old Defined Benefits Scheme, which has placed significant fiscal burdens on government finances.
With the bi-annual consultative framework now in place, PenCom expressed optimism that more states will move beyond enacting pension laws to fully implementing the Contributory Pension Scheme, helping to strengthen retirement security and protect civil servants from old-age poverty.
