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By Daniel Adaji
The National Pension Commission (PenCom) has said that twenty-eight Nigerian states have yet to fully implement or remit funds under the Contributory Pension Scheme (CPS), deepening the nation’s pension crisis.
The Director General of PenCom, Omolola Oloworaran, disclosed this on Wednesday during the First Run 2025 Consultative Forum for States and the Federal Capital Territory (FCT), held in Kano.
The forum brought together stakeholders to review the state of pension reform and accelerate the adoption of CPS nationwide.
She said only eight states have fully implemented the CPS, while 25 states and the FCT have passed the required laws. Six states are currently running hybrid pension systems, and another six are in the advanced stages of passing CPS legislation.
“This journey is far from complete,” Oloworaran stated.
“Notable progress has been made in Katsina, Yobe, Bauchi, and Abia states. However, full implementation of the CPS is currently limited to eight states,” she said.
The CPS, established to replace the old Defined Benefits Scheme, is a mandatory pension system where both employer and employee contribute a percentage of the worker’s salary into a retirement savings account. Its purpose is to ensure sustainable retirement income for workers.
To support states lagging, PenCom has introduced a flexible implementation framework.
This model allows gradual adoption, starting with newly employed workers or those with fewer than 10 years left in service. The aim is to reduce immediate financial burdens on state governments while building compliance over time.
To further ease the transition, PenCom is providing technical assistance to states in handling legacy pension liabilities and crafting financially viable transition strategies.
“With sustained dialogue, technical collaboration, and strong political will, we are confident of reaching this goal,” Oloworaran said.
She described the Kano meeting as a “call to collective action” urging participants to co-create solutions and renew commitment to a secure, inclusive pension system.
Meanwhile, PenCom has intensified its enforcement drive. According to Oloworaran, N1.58bn was recovered from defaulting employers in the private sector through stricter compliance measures.
As of February 2025, total pension assets under management have grown to over N23tn, underscoring the growing confidence in the system.
Kano State was singled out for commendation during the forum.
The Head of Service, Abdullahi Musa, said the state had implemented a hybrid model combining features of both the CPS and the old scheme.
He revealed that Governor Abba Kabir’s administration had cleared N16bn in outstanding pension arrears—approximately 40 per cent of the debt inherited from previous administrations.
Musa applauded PenCom for its leadership, stating, “Kano is committed to comprehensive reforms that reflect best global practices.”