Lagos, Sept. 18, 2024 — The National Pension Commission (PenCom) has revealed that states remitted a total of N236.7 billion in pension contributions to Pension Fund Custodians (PFCs) from January 2020 through the second quarter of 2024. This disclosure was made on Wednesday by Ms. Omolola Oloworaran, the Acting Director-General of PenCom, during the Third Quarter 2024 Consultative Forum for States and the Federal Capital Territory (FCT), held in Lagos.
The forum, which brought together pension heads from state bureaux and commissions responsible for implementing the Contributory Pension Scheme (CPS), as well as senior government officials, aimed to review the progress of the scheme and explore areas for improvement.
During her address, Oloworaran provided an update on the implementation of the CPS across the country. She reported that 25 states, including the FCT, had enacted pension laws under the CPS, while six states are currently in the process of passing the required legislation. However, only eight states are fully implementing the scheme, with the requisite laws and structures in place to ensure its smooth operation.
She further noted the significant growth of pension fund assets under the CPS, which reached N20.79 trillion in Assets under Management (AUM) as of July 2024. This increase highlights the expanding scope of the pension system, providing long-term capital that states can leverage for infrastructural development. Oloworaran cited examples of states such as Lagos, Niger, Osun, Ekiti, and Delta, which have successfully tapped into accumulated pension funds by issuing state bonds for development projects.
In reaffirming PenCom’s commitment to the timely payment of retirement benefits for public and private sector retirees, Oloworaran emphasized the need to expand the coverage of the CPS to more states. To encourage states’ progress in pension reforms, she announced that PenCom would introduce a Recognition and Award System starting in December 2025, which will reward states that demonstrate exceptional progress in implementing the CPS.
In her closing remarks, Oloworaran urged participants at the forum to actively engage in discussions aimed at addressing challenges and driving further reforms at the state level. The consultative forum will play a key role in shaping the future of the pension landscape across Nigeria.
The Contributory Pension Scheme, introduced by the Pension Reform Act of 2004 and amended in 2014, is a pivotal initiative designed to ensure that workers receive their pensions as and when due. The scheme mandates that both employers and employees contribute to a Retirement Savings Account, offering a sustainable approach to pension funding in both the public and private sectors.
Source: NAN
