Only Seven Nigerian States, FCT Fully Implement Pension Laws – PenCom DG

The National Pension Commission (PenCom) has highlighted a concerning disparity in the implementation of pension reform laws across Nigeria, revealing that a mere seven states and the Federal Capital Territory (FCT) are fully adhering to these crucial regulations. This disclosure came during the maiden consultative session organized by PenCom for heads of service from states that have yet to fully embrace or implement the Contributory Pension Scheme (CPS) or the Contributory Defined Benefits Scheme (CDBS).

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Out of the 36 states with pension reform laws on their books, only seven states, together with the Federal Capital Territory, are fully implementing these laws.

PenCom Director-General, Mrs. Omolola Oloworaran, emphasized that out of the 36 states with pension reform laws on their statutes, a significant majority – 23 states – have laws that are either inactive or only partially implemented. This leaves countless civil servants in these states uncertain about their retirement futures, not due to a lack of legislation, but because the enacted laws have not been activated or consistently applied.

The session aimed to foster dialogue and identify practical ways PenCom could offer technical support to these states. Oloworaran stressed that pension reform is not merely a policy choice but a constitutional and fiscal obligation, citing Section 210 of the 1999 Constitution, which guarantees pension rights. She contrasted the failed old pension structure, which created unsustainable liabilities, with the CPS, designed for accountability, sustainability, and transparency.

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That leaves 23 states whose laws are written, inactive, or only partially being implemented. Twenty-three sets of public servants or civil servants whose retirement future hangs in the balance, not because there is no law, but because the law has not been activated.

From a Nigerian perspective, the consistent and timely payment of pensions is a matter of immense social and economic importance. The failure of many states to fully implement these reforms not only jeopardizes the retirement security of their civil servants but also reflects broader governance challenges related to fiscal discipline and commitment to public welfare. PenCom's efforts to engage with state officials underscore the ongoing struggle to ensure that all Nigerian workers can look forward to a dignified retirement, free from the anxieties that plague those in states with inactive or partially implemented pension laws. The commission's goal of achieving "zero pension liabilities" is a laudable ambition that requires sustained political will and administrative rigor from all levels of government.

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Across our states, the challenge is no longer the enactment of laws. The challenge is the discipline of execution. It is the regular and timely remittance of contributions. It is the adequate and consistent funding of accrued pension rights.