To safeguard the retirement savings of Nigerian workers, the National Pension Commission (PenCom) has announced the successful recovery of N1.58 billion from defaulting employers through intensified enforcement efforts. The disclosure was made by the Director-General of PenCom, Omolola Oloworaran, on Wednesday at the First Run 2025 Consultative Forum for States and the Federal Capital Territory held in Kano, according to the News Agency of Nigeria (NAN).
Oloworaran emphasized that this recovery underscores the commission’s unwavering commitment to ensuring strict adherence to the Contributory Pension Scheme (CPS) and protecting the rights of employees to their hard-earned retirement funds. “This significant recovery demonstrates our renewed drive to ensure that employers meet their obligations under the CPS,” she stated, highlighting the importance of these funds for the future financial security of Nigerian workers.
The Director-General further noted that the increased rigor in enforcement has positively influenced the adoption of the CPS across the country, with state remittances showing a marked improvement. As of February 2025, the total pension assets under management had impressively surpassed N23 trillion, a substantial milestone that reflects the growing confidence and participation in the scheme. This surge in assets signifies the increasing stability and potential of Nigeria’s pension system to provide meaningful retirement benefits.
Despite these notable achievements, Oloworaran pointed out that the full implementation of the CPS across all states remains a work in progress. Currently, only 25 states and the Federal Capital Territory have enacted the necessary laws to implement the scheme. Six states are operating under hybrid pension schemes, while another six have bills at advanced stages of legislative consideration. Encouragingly, states like Katsina, Yobe, Bauchi, and Abia have demonstrated significant progress in their adoption processes. However, full CPS implementation is currently limited to just eight states nationwide.
Acknowledging the varying paces of adoption, PenCom has introduced a flexible implementation model to facilitate broader inclusion. This approach allows states to commence CPS implementation with new employees or those with less than 10 years of service, providing a more adaptable pathway for states to transition into the scheme.
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Furthermore, Oloworaran affirmed PenCom’s commitment to providing comprehensive technical support to state governments. This support aims to enable states to effectively plan for and manage legacy pension liabilities and to ensure a sustainable transition of their workforce into the CPS framework. “We remain steadfast in our goal of achieving full onboarding of all states and the FCT into the CPS,” Oloworaran asserted. “Through sustained dialogue, technical collaboration, and strong political will, we are confident in reaching this crucial objective.”
She characterized the consultative forum as more than just a routine meeting, describing it as “a call to collective action” aimed at fortifying Nigeria’s pension system and ensuring a secure financial future for its citizens.
Echoing this sentiment, the Head of Service of Kano State, Alhaji Abdullahi Musa, reaffirmed the state’s dedication to pension reform. He commended PenCom for its continuous leadership in promoting best practices within the sector. Musa highlighted that the Kano State Government had adopted a hybrid pension model and had made considerable progress by clearing N16 billion of outstanding pension entitlements, representing approximately 40 percent of the liabilities inherited from previous administrations.
Musa emphasized the critical role of the forum as a “vital platform for dialogue, peer learning, and policy refinement” in the collective effort to guarantee financial security for Nigeria’s growing elderly population.
This development follows a recent report from PenCom indicating that 23,673 disengaged workers withdrew a total of N33.43 billion from their Retirement Savings Accounts in the third quarter of 2024, underscoring the importance of a robust and well-enforced pension system to provide long-term security for retirees. The ongoing efforts by PenCom to recover funds and expand the reach of the CPS are crucial steps towards achieving this goal.
