The National Pension Commission (PenCom) has disclosed that it successfully recovered a total of N1.58 billion from defaulting employers through intensified compliance and enforcement mechanisms.
This was made known by the Director General of PenCom, Ms. Omolola Oloworaran, on Wednesday in Kano during the First Run 2025 Consultative Forum for States and the Federal Capital Territory (FCT), News Agency of Nigeria (NAN) reports.
The forum brought together key stakeholders to evaluate progress and discuss strategic actions for broader adoption of the Contributory Pension Scheme (CPS) across the country.
According to Oloworaran, remittances by states have continued to improve, reflecting a growing commitment to the CPS among subnational governments.
She also revealed that as of February 2025, total pension assets under management had surpassed N23 trillion, highlighting the increasing confidence in the Nigerian pension system.
However, she acknowledged that the journey is far from complete. Despite these gains, only 25 states and the FCT have enacted laws to implement the CPS. Of these, only eight states have fully implemented the scheme.
Mixed Adoption Across States
“Six states are currently operating hybrid pension schemes, while another six states have CPS bills at advanced legislative stages. Notable progress has been made in Katsina, Yobe, Bauchi, and Abia states. However, full implementation of the CPS is currently limited to eight states”, Oloworaran noted.
In response to this disparity, PenCom has introduced a flexible adoption framework to help states begin implementation gradually. This model allows states to initially onboard new employees or those with fewer than 10 years of service, easing the transition process while managing financial constraints.
- The Director General further stated that PenCom is offering technical assistance to states, particularly in planning for legacy liabilities and developing financially sustainable frameworks for transitioning their entire workforce into the CPS.
- She reaffirmed the commission’s commitment 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,” she said.
Oloworaran described the ongoing forum not just as a routine meeting but as a pivotal “call to collective action,” urging stakeholders to share innovations, co-create solutions, and recommit to building an inclusive, secure pension system.
Kano State’s Reforms Commended
Earlier in his remarks, the Head of Service (HOS) of Kano State, Alhaji Abdullahi Musa, reiterated the state government’s dedication to comprehensive pension reforms. He praised PenCom for providing leadership and guidance in promoting global best practices within Nigeria’s pension system.
Musa highlighted Kano’s progress, particularly the implementation of a hybrid pension model that integrates features of both defined benefits and the CPS.
He revealed that the administration of Governor Abba Kabir had paid N16 billion in outstanding pension entitlements, representing about 40% of the liabilities inherited from past governments.
