PenCom seeks urgent action as millions of state workers face retirement uncertainty

…says only seven states fully implement pension scheme despite existing laws

The National Pension Commission (PenCom) has called for urgent and decisive action from state governments to fully implement pension reforms, warning that millions of state workers remain uncertain about their retirement future despite existing pension laws across the country.

Omolola Oloworaran, director-general of PenCom, made the call on Thursday during a first-of-its-kind consultative session with Heads of Service from states of the federation, stressing that pension reform is a constitutional obligation and not a matter of political convenience.

Addressing representatives from 29 states yet to fully implement the Contributory Pension Scheme (CPS) or related pension reform frameworks, Oloworaran said only seven states and the Federal Capital Territory are currently fully implementing pension reform laws, despite 30 states and the FCT having enacted relevant legislation.

“In this room are leaders from 29 states that are yet to fully implement the contributory pension scheme or any approved pension reform framework. Your presence here is not ceremonial. It is a statement of intent,” she said.

According to her, 23 states have enacted pension reform laws but are either implementing them partially or have failed to activate them entirely, while six other states still have pension reform bills awaiting passage in their legislatures.

She described the situation as a major threat to the retirement security of civil servants across the country.

“Pension reform is not a matter of choice. It is not a debate and it is not optional. It is a fiscal imperative and a constitutional duty rooted in Section 210 of the 1999 Constitution,” she stated.

The PenCom boss noted that the old pension system had failed due to uncertainty, weak accountability, and unsustainable liabilities, adding that the CPS was introduced to ensure transparency, sustainability, and retirement dignity for workers.

She, however, stressed that legislation alone would not solve the problem without concrete implementation measures.

“The challenge is no longer the enactment of laws. The challenge is the discipline of execution. It is the regular remittance of contributions, adequate funding of accrued rights, and establishment of functional institutional frameworks,” she said.

Oloworaran charged Heads of Service to take ownership of pension reform implementation in their respective states, saying they occupy strategic positions in workforce administration and policy execution.

“The success or failure of pension reform in your states will be written in large part by your hands,” she noted

She added that PenCom was ready to support states in removing obstacles hindering implementation and achieving what she described as the commission’s core mission of “zero pension liabilities and retirement dignity across Nigeria.”

Highlighting federal government efforts, Oloworaran disclosed that President Bola Ahmed Tinubu approved the release of N758 billion in 2025 to clear outstanding federal pension liabilities.

“Today, I can say without fear of contradiction that there are no outstanding pension liabilities at the federal level,” she said, describing the intervention as historic and a strong signal of commitment to workers’ welfare.

She also referenced the launch of “Pension Revolution 2.0,” a reform initiative anchored on retiree dignity, minimum pension guarantees, expanded coverage, improved investment performance, technology-driven service delivery, and national development financing.

Speaking at the session, Didi Esther Walson-Jack, Head of the Civil Service of the Federation, emphasized that retirement should not become a “season of anxiety for public servants who devoted their productive years to national service.

“Every civil servant who gives the best years of his or her life to the service of our dear nation deserves the assurance that retirement will not become a season of anxiety but a period of stability, honour and peace,” she said.

Walson-Jack noted that the CPS had introduced greater transparency, accountability, and sustainability into pension administration, but stressed that deeper implementation across states remained critical.

She urged participating states to use the consultative session as an opportunity for honest dialogue, practical problem-solving, and stronger collaboration with PenCom.

“Our civil servants are watching, our retirees are watching, and the future workforce is also watching,” she said.

The Head of Service further assured PenCom of the support of her office in advancing reforms aimed at promoting dignity, efficiency, accountability, and improved welfare within the public service.