Imagine a future where millions of Nigerians retire with dignity, their golden years secured by a robust pension system. But here’s the shocking truth: only 17 out of Nigeria’s 36 states are currently implementing the Contributory Pension Scheme (CPS), leaving a significant portion of the population vulnerable. The Nigerian Pension Commission (PenCom) revealed this during the Second Run 2025 Consultative Forum held in Benin, Edo State, shedding light on the uneven progress across the nation. While 12 states have yet to begin, seven are still in the process of setting up their pension bureaus. This disparity raises a critical question: Can Nigeria truly achieve a nationwide pension reform without full state participation?
PenCom’s Director-General, Omolola Oloworaran, highlighted the strides made under the CPS, which now benefits over 10.9 million workers across federal, state, and private sectors, with pension assets surpassing ₦26 trillion. This monumental growth is fueling national development, but Oloworaran emphasized, “Our mission is far from complete.” The success of this reform hinges on its adoption by all states, local governments, and the informal sector—a challenge that requires urgent collaboration.
And this is the part most people miss: the informal sector, which constitutes a vast majority of Nigeria’s workforce, has long been overlooked. To address this, PenCom is rebranding the existing micro-pension plan as the Personal Pension Plan, aiming to include millions of informal workers. This initiative offers a flexible structure, allowing individuals to contribute at their own pace, regardless of their employment status. But will this be enough to bridge the gap?
Oloworaran also praised President Bola Tinubu for approving a ₦758 billion bond to settle legacy pension liabilities, including accrued rights and pension increases. This move is a significant step toward ensuring retirees receive what they’re owed. Yet, the real test lies in how effectively states implement these reforms. Is your state among the 17 leading the charge, or is it lagging behind?
Over the past year, PenCom has achieved notable milestones, including timely pension payments, the reintroduction of gratuity for federal civil servants, and a new remittance system to eliminate errors. However, the success of Nigeria’s pension system ultimately depends on sub-national governments fully embracing the CPS and Contributory Defined Benefit Scheme (CDBS). What’s stopping the remaining states from joining this transformative initiative?
Governor Monday Okpebholo of Edo State, represented by Secretary to the State Government Musa Ikhilor, expressed support for the CPS and pledged to implement recommendations from an upcoming report. His administration has already released ₦3 billion out of ₦5 billion owed to disengaged staff of a state-owned college—a promising sign of commitment. But how many other states are willing to take such decisive action?
As we reflect on these developments, one thing is clear: the journey to a secure retirement for all Nigerians is far from over. Do you think the CPS can succeed without full state participation? What role should the federal government play in accelerating this reform? Share your thoughts in the comments—let’s spark a conversation that could shape the future of Nigeria’s pension system.