The National Pension Commission (PenCom) has announced the recovery of ₦1.58 billion from defaulting employers as part of its enhanced enforcement drive aimed at strengthening compliance with the Contributory Pension Scheme (CPS).
Speaking at the First Run 2025 Consultative Forum for states and the Federal Capital Territory (FCT) in Kano on Wednesday, PenCom Director-General, Omolola Oloworaran, said the recovery was a result of targeted oversight and renewed efforts to protect workers’ retirement savings. The Commission, she said, remains fully committed to holding employers accountable and ensuring that employee contributions are promptly and accurately remitted.
“Our enforcement activities have not only led to financial recoveries but also improved compliance across sectors,” Oloworaran said. “This is vital in building trust in the pension system and securing the financial futures of Nigerian workers.”
As of February 2025, total pension assets under PenCom’s management have surpassed ₦23 trillion, marking a significant milestone in the Commission’s mandate to safeguard and grow pension funds for the benefit of contributors and retirees alike.
Despite notable achievements, Oloworaran noted that full adoption of the CPS across Nigeria remains a work in progress. Currently, only 25 states and the FCT have enacted legislation to implement the scheme. Of these, just eight states have fully operationalized the system. Six states are running hybrid schemes, while another six have draft CPS bills undergoing legislative review.
To bridge the compliance gap, PenCom has introduced a flexible implementation model that allows states to begin onboarding with newly hired employees or civil servants with fewer than ten years left in service. This phased approach, she said, is aimed at easing the transition while addressing legacy liabilities.
“Our goal is total onboarding of all states into the CPS. Through continued engagement, technical support, and sustained political commitment, we believe this is achievable,” she stated.
The DG also revealed that PenCom is supporting state governments with technical assistance to plan sustainably for future pension obligations, particularly in managing historical shortfalls.
In his remarks, Abdullahi Musa, Head of Service of Kano State, commended PenCom’s leadership and reaffirmed the state’s commitment to pension reform. He revealed that Kano has adopted a hybrid pension model and cleared ₦16 billion in outstanding pension entitlements about 40% of the liabilities inherited from previous administrations.
“This forum is more than just a meeting,” Musa said. “It is a vital platform for collaboration, policy development, and ensuring long-term financial security for our ageing population.”
In a related development, PenCom also disclosed that 23,673 disengaged workers withdrew a total of ₦33.43 billion from their Retirement Savings Accounts (RSAs) in Q3 2024, highlighting the ongoing role of the CPS in providing financial support during periods of employment transition.
With improved enforcement, growing assets under management, and increased state engagement, PenCom says it remains optimistic about achieving a fully inclusive national pension system capable of supporting Nigeria’s broader economic and social development goals.
