By Musa Ibrahim
The National Pension Commission (PenCom) is intensifying pressure on state governments to fully implement the Contributory Pension Scheme (CPS) as concerns persist over retirement security for thousands of public sector workers across the country.
At the recent one-day consultative forum in Abuja with Heads of States’ Civil Service, Director-General (DG) of PenCom, Ms Omolola Oloworaran, urged 29 states yet to fully operationalise the scheme to accelerate implementation and strengthen pension administration frameworks.
According to Oloworaran, the engagement was designed to move pension reform beyond legislation into practical implementation capable of guaranteeing retirement protection for civil servants.
She stated that pension reform should not be viewed as discretionary policy but as a constitutional and fiscal obligation tied to worker welfare and long-term financial sustainability.
“Pension reform is not a matter of choice. It is a fiscal imperative, a statutory obligation, and a constitutional duty rooted in Section 210 of the 1999 Constitution,” she said.
The PenCom DG disclosed that although 30 states and the Federal Capital Territory have enacted pension reform laws, only seven states and the Federal Capital Territory are fully implementing the CPS.
According to her, 23 states operate systems that are either partially implemented or inactive, while six others still have pension reform bills awaiting passage by their state legislatures.
The development highlights the uneven pace of pension reform across Nigeria despite years of attempts to shift away from the old Defined Benefits Scheme, which government authorities have repeatedly described as financially unsustainable.
Oloworaran stated that the CPS was introduced to strengthen transparency, accountability and sustainability in pension administration while reducing long-term pension liabilities.
“Our task today is to chart a clear path away from the old unsustainable defined benefits scheme and onto the firm ground of contribution, structure, and sustainability,” she stated.
She identified irregular remittance of pension deductions, inadequate funding of accrued pension rights and weak institutional structures as major obstacles affecting implementation at state level.
The PenCom boss also charged Heads of Service to play more active roles in driving reform implementation within their respective states, arguing that the credibility of pension reform would depend heavily on administrative commitment and institutional coordination.
She further referenced the Federal Government’s recent approval of exit benefits for retiring federal civil servants under the CPS as part of broader efforts to improve confidence in the scheme.
“The federal government has shown the way. The states must answer the call,” she added.
Head of the Civil Service of the Federation, Mrs Didi Walson-Jack, also described pension reform as central to workforce management and institutional credibility.
According to her, civil servants should not retire into uncertainty after years of public service.
“A credible pension system is an essential part of good workforce management,” she said.
Walson-Jack stated that although the CPS had introduced stronger transparency and accountability into pension administration, the long-term success of the reform would depend on deeper implementation across all levels of government.
She urged state governments participating in the engagement to approach implementation discussions with commitment and openness despite varying operational challenges across states.
The consultative session brought together Heads of Service from states yet to fully implement the CPS, with PenCom seeking stronger commitments, implementation timelines and coordinated reform strategies aimed at deepening pension administration nationwide.
