The National Pension Commission (PenCom) has announced the successful recovery of N1.58 billion from employers who had defaulted on pension remittances. This achievement follows PenCom’s intensified compliance and enforcement efforts, which aim to ensure full implementation of the Contributory Pension Scheme (CPS) across Nigeria.
The Director-General of PenCom, Ms. Omolola Oloworaran, made the announcement on Wednesday during the First Run 2025 Consultative Forum for States and the Federal Capital Territory (FCT), held in Kano. The event brought together key stakeholders to review progress and discuss strategic actions to increase CPS adoption across the country.
According to Oloworaran, remittance rates by states have shown improvement, indicating growing commitment to the CPS by subnational governments. As of February 2025, Nigeria’s total pension assets under management exceeded N23 trillion, demonstrating growing confidence in the pension system.
Despite these advancements, Oloworaran acknowledged that there is still work to be done. Currently, only 25 states and the FCT have passed laws to implement the CPS, with only eight states fully implementing the scheme. Another six states operate hybrid pension systems, while six more have CPS bills nearing final approval.
Oloworaran noted that full adoption of the CPS has been slow in several states. However, PenCom has introduced a flexible adoption framework that allows states to gradually onboard employees, especially new hires and those with fewer than 10 years of service. This approach helps manage financial constraints and supports smoother transitions for states moving toward full implementation.
PenCom is also offering technical assistance to help states address legacy liabilities and develop sustainable financial frameworks for the transition to the CPS. Oloworaran emphasized the commission’s commitment to ensuring all states and the FCT are fully onboarded into the scheme.
“With sustained dialogue, technical collaboration, and strong political will, we are confident of reaching this goal,” Oloworaran said.
In his address, Alhaji Abdullahi Musa, Head of Service (HOS) of Kano State, praised PenCom’s leadership in driving pension reforms in Nigeria. He highlighted Kano’s progress, particularly the implementation of a hybrid pension model combining elements of both defined benefits and the CPS.
Musa also shared that the Kano State government, under Governor Abba Kabir, had paid N16 billion in outstanding pension entitlements, covering about 40% of the liabilities inherited from previous administrations.
The PenCom forum in Kano was not just a routine meeting, but a call for collective action. Oloworaran urged stakeholders to share innovations, collaborate on solutions, and work together to build a more inclusive and secure pension system for Nigeria.
The commission’s ongoing efforts to promote CPS adoption and strengthen Nigeria’s pension system remain a key focus, with the goal of ensuring every Nigerian worker benefits from the security of the Contributory Pension Scheme.
