17 States implement contributory pension scheme as PenCom moves to reform informal sector plan
The National Pension Commission (PenCom) has disclosed that only 17 of Nigeria’s 36 states are currently implementing the Contributory Pension Scheme (CPS), while 12 states have yet to begin, and seven more are still setting up their pension bureaus.
The revelation was made on Wednesday at the Second Run 2025 Consultative Forum for States and the FCT, held in Benin City, Edo State. PenCom also announced that the existing Micro-Pension Plan for informal sector workers is being redesigned and rebranded as the Personal Pension Plan to accommodate millions of Nigerians working outside the formal system.
PenCom Director General, Ms. Omolola Oloworaran, represented by Commissioner Samuel Uwandu, commended President Bola Tinubu for approving a ₦758 billion bond to settle legacy pension arrears, including accrued rights, pension increases and the minimum pension guarantee. She said the CPS had restored confidence in Nigeria’s pension system.
“Today, under the CPS, that promise is being kept for over 10.9 million workers at the federal, state and private sector levels, with pension assets now topping ₦26 trillion,” she said. “But our mission is not complete. The success of this reform rests on its implementation in every state, local government, and across the informal sector.”
Oloworaran highlighted reforms achieved in the past year, including timely payment of accrued pension rights, the planned re-introduction of gratuity for federal civil servants, and the rollout of a Pension Contribution Remittance System to eliminate delays and errors.
Acting Head of Corporate Communications, Ibrahim Buwai, explained that the redesigned Personal Pension Plan would give informal sector workers greater flexibility to contribute at their own pace, ensuring broader national coverage.
Declaring the two-day forum open, Edo State Governor Monday Okpebholo, represented by Secretary to the State Government Musa Ikhilor, reaffirmed the state’s commitment to the CPS. He disclosed that the state government had already released ₦3 billion out of the ₦5 billion owed to staff of the state-owned College of Education who were disengaged after the school was taken over by the federal government.
