The National Pension Commission (PenCom) has recovered a total of N1.58 billion from employers who defaulted on pension contributions, in a renewed enforcement campaign aimed at strengthening Nigeria’s Contributory Pension Scheme (CPS).
This disclosure was made by PenCom’s Director-General, Omolola Oloworaran, at the First Run 2025 Consultative Forum for States and the Federal Capital Territory (FCT) held in Kano. She described the recovery as part of a broader commitment to ensuring employers comply with pension regulations and to protect workers’ retirement savings.
Compliance and Growth in Pension Assets
Oloworaran highlighted that enhanced enforcement measures have significantly improved state-level adoption of the CPS. As of February 2025, Nigeria’s pension assets under management exceeded N23 trillion—a landmark figure that underscores the scheme’s growing relevance.
Despite this progress, only 25 states and the FCT have enacted laws to implement the CPS. Six other states currently operate hybrid pension systems, and another six are at advanced stages of passing relevant legislation.
The DG praised states like Katsina, Yobe, Bauchi, and Abia for making notable strides but noted that full implementation of the CPS is presently limited to just eight states.
Flexible Adoption Model
To encourage broader participation, PenCom has introduced a flexible adoption model. This allows states to begin implementation with new hires or workers who have less than 10 years of service remaining. The Commission is also providing technical assistance to help states plan for legacy pension liabilities and ensure a smooth transition for their workforces.
“We remain committed to achieving full onboarding of all states and the FCT into the CPS. With sustained dialogue, technical collaboration, and strong political will, we are confident of reaching this goal,” Oloworaran affirmed.
She emphasized that the forum goes beyond routine meetings and serves as a strategic platform to drive collective action in improving Nigeria’s pension landscape.
Kano State’s Pension Progress
In his remarks, the Head of Service of Kano State, Alhaji Abdullahi Musa, reiterated the state’s dedication to pension reform. He revealed that Kano operates a hybrid pension system and has cleared N16 billion—around 40 percent—of outstanding pension liabilities inherited from previous administrations.
Musa described the consultative forum as a “vital platform for dialogue, peer learning, and policy refinement,” critical for securing the financial future of Nigeria’s retirees.
The Road Ahead
PenCom’s intensified enforcement and advocacy efforts reflect a push toward nationwide pension reform. While progress has been made, achieving full adoption of the CPS across all states remains a top priority. With rising pension assets and increased state participation, stakeholders are hopeful that Nigeria’s retirement system will continue to evolve into a more inclusive and secure framework.
