PenCom Recovers ₦1.58 Billion From Defaulting Employers As Pension Reforms Advance.
The National Pension Commission (PenCom) has recovered ₦1.58 billion from defaulting employers through intensified enforcement efforts, marking a significant step forward in strengthening Nigeria’s pension system.
The Director General of PenCom, Omolola Oloworaran, made this announcement yesterday in Kano during the First Run 2025 Consultative Forum for States and the Federal Capital Territory (FCT).
Oloworaran revealed that state remittances under the Contributory Pension Scheme (CPS) have shown notable improvement, with more states adopting the scheme. She also reported that total pension assets under management had exceeded ₦23 trillion as of February 2025.
Despite these gains, the Director General acknowledged existing challenges, pointing out that only 25 states and the FCT have enacted legislation to implement the CPS. Of the remaining states, six operate hybrid schemes, while another six have bills progressing through legislative processes.
“Notable progress has been made in Katsina, Yobe, Bauchi, and Abia states. However, full implementation of the CPS is currently limited to eight states,” she noted.
To accelerate adoption, PenCom has introduced a flexible model that allows states to start implementation with new employees or those with less than 10 years of service. Oloworaran also emphasised the technical assistance being provided to states to help plan for legacy liabilities and ensure a financially sustainable transition.
She reaffirmed PenCom’s commitment to achieving full onboarding of all states and the FCT into the CPS, stating, “With sustained dialogue, technical collaboration, and strong political will, we are confident of reaching this goal.”
Describing the consultative forum as more than a routine meeting, she called it “a call to collective action” and urged participants to use the platform to co-create innovative solutions and renew their commitment to a unified and inclusive pension system.
Also speaking at the forum, the Head of Service of Kano State, Alhaji Abdullahi Musa, commended PenCom’s efforts and described the event as a “vital platform for dialogue, peer learning, and policy refinement.”
Musa affirmed Kano State’s commitment to pension reform and highlighted the state’s progress in adopting a hybrid model that blends elements of the defined benefits system with the CPS. He disclosed that under Governor Abba Kabir’s leadership, the state government had paid ₦16 billion in outstanding entitlements—representing about 40 per cent of the pension liabilities inherited from previous administrations.
With renewed collaboration between the federal commission and state governments, stakeholders remain optimistic that Nigeria’s pension system will continue to evolve into a more inclusive, transparent, and secure framework for retirees across the country.