The Director-General of the National Pension Commission, Omolola Oloworaran, has clarified that the proposed increase in pension contribution rates under the ongoing review of the Pension Reform Act 2014 will affect only employers, not employees.
Oloworaran made the clarification on Wednesday amid concerns that higher pension contributions could increase the financial burden on Nigerian workers.
The clarification came a day after PenCom disclosed plans to increase statutory pension contribution rates as part of efforts to strengthen retirement security and improve the sustainability of the Contributory Pension Scheme.
Addressing the concerns in a post on X, Oloworaran stressed that the proposed increase would apply solely to employer contributions and would not result in additional deductions from workers’ salaries.
“For the avoidance of doubt, my comments were in relation to employer pension contributions, not employee contributions,” she stated.
“Engagements with organised labour, employer associations and other key stakeholders are still ongoing, and no final decision has been taken. Nigerians should rest assured that PenCom will not introduce any reform that makes life harder for ordinary Nigerians.”
She added that any eventual reform would be guided by consultations and evidence, with the aim of strengthening retirement security while balancing the interests of workers, employers and the broader economy.
Under the current pension framework, employers are required to contribute a minimum of 10 per cent of an employee’s monthly emoluments, while employees contribute 8 per cent, bringing the combined minimum pension contribution to 18 per cent.
As part of the broader pension reform process, PenCom is proposing an increase in the employer contribution component.
Speaking at the 2026 Pension Consultative Forum for States, the Federal Capital Territory and Licensed Pension Fund Operators in Lagos on Tuesday, the PenCom chief said the commission was consulting organised labour, employer groups and members of the National Assembly on proposed amendments to the PRA 2014.
According to the commission, the consultative forum is aimed at deepening stakeholder engagement and supporting efforts to align state pension systems with national standards under the CPS.
Oloworaran also reiterated concerns over the low level of compliance with the CPS among state governments, revealing that only eight of Nigeria’s 36 states are currently implementing the scheme in line with legal requirements.
“I am not satisfied at all with where we are,” she said.
“If you were to rate it, we still have an ‘F9.’ We still have only eight states out of 36 states complying. There has to be more political will. Governors must prioritise their workers and their future when they retire—not just worry about today. All 36 states should be under the Contributory Pension Scheme.”
To encourage wider adoption of the scheme, the PenCom DG disclosed that the commission is exploring mechanisms to establish sustainable revenue streams for state pension bureaus.
Oloworaran also criticised the practice by some state governments of deducting pension contributions from workers’ salaries without remitting the funds into their Retirement Savings Accounts.
