National Pension Commission (PenCom) has begun high-level discussions with the Lagos State Government and the Lagos State Pension Commission over delayed pension adjustments, wage awards and outstanding benefits for retirees under the Contributory Pension Scheme (CPS).
The engagement followed protests by Lagos retirees, who demanded the payment of approved wage awards, consequential pension increases and arrears. PenCom acknowledged the difficulties caused by the delays and said it was working with the state government, LASPEC, Pension Fund Administrators and pensioners’ representatives to develop a transparent and sustainable solution.
The commission explained that CPS pension increases require eligibility assessments, actuarial calculations, funding approvals and operational guidelines before payments can be made. Unlike the former Defined Benefits Scheme, adjustments under the CPS are funded directly into retirees’ Retirement Savings Accounts and must not undermine pension fund investments.
Lagos remains one of the country’s leading states in pension compliance. Since the CPS began in 2007, the state has paid N168.2 billion in accrued rights to more than 48,000 retirees. Under Governor Babajide Sanwo-Olu, over N92 billion was paid to more than 25,000 retirees between May 2019 and mid-2026, including a N5 billion payment in July 2024 to reduce outstanding liabilities.
However, delays in implementing recent wage awards and pension increases continue to cause tension across several states. PenCom also noted that irregular employer contributions have left many Retirement Savings Accounts unfunded nationwide. The regulator reaffirmed its commitment to enforcing the Pension Reform Act 2014 and protecting the rights of contributors and pensioners.
