The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has revealed that the Commission is considering the use of enforcement measures to improve pension compliance among Nigerian states. Speaking during PenCom’s maiden bi-annual consultative session for state Heads of Service, she explained that although PenCom cannot directly sanction defaulting states, it is exploring alternative mechanisms to encourage them to fully implement pension reforms.
According to her, PenCom will continue engaging states over the next few years while also considering available institutional tools that could pressure non-compliant states to comply with pension laws. She emphasized that the Commission’s goal is to move states beyond merely passing pension legislation to fully implementing the laws for the benefit of workers and retirees.
The event brought together pension officials, state Heads of Service, and the Head of the Civil Service of the Federation, Didi Esther Walson-Jack. Walson-Jack commended PenCom’s efforts and noted that the agency possesses the technical expertise needed to support state governments in implementing pension reforms that safeguard civil servants’ welfare.
Oloworaran disclosed that only seven states and the Federal Capital Territory are fully implementing pension reform laws. While 30 states and the FCT have enacted laws on the Contributory Pension Scheme (CPS) or Contributory Defined Benefits Scheme, six states are yet to pass the required legislation. She also noted that 23 states have laws that are either inactive or only partially implemented, leaving many civil servants uncertain about their retirement security.
She stressed that pension reform is both a legal obligation and an economic necessity. The DG also highlighted PenCom’s broader reform agenda, including plans to extend pension coverage to over 75 million informal sector workers. This follows the licensing of Awabah as PenCom’s first Accredited Pension Agent under the Personal Pension Plan initiative.
Recent industry data showed continued growth in Nigeria’s pension sector. Retirement Savings Account registrations rose to 10.19 million by the end of 2023, while pension assets increased to N18.36 trillion, representing a record annual growth of 22.43%. The CPS currently serves over 10 million Nigerians, and more than 552,000 retirees receive regular pensions. In addition, contributions under the Personal Pension Plan expanded significantly, rising from N168.63 million in 2021 to N1.46 billion by June 2025.
