Abuja: The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, announced that the Contributory Pension Scheme (CPS) has significantly transformed Nigeria’s pension landscape over the past two decades. Oloworaran made this statement during the Stakeholders’ Conference on the Workings of the CPS, held for employees and pensioners of the Federal Government Treasury-Funded MDAs in Abuja. The event was organized by PenCom in collaboration with the National Salaries, Incomes and Wages Commission (NSIWC).
According to News Agency of Nigeria, Oloworaran, represented by Acting Commissioner (Technical), Hafiz Ibrahim, emphasized that PenCom has transitioned from a period marked by unpaid entitlements and uncertainty to a system based on transparency, sustainability, and inclusiveness. She highlighted that the CPS now covers over 10 million Nigerians, including public service employees, private sector workers, artisans, and the self-employed under the Personal Pension Plan.
Oloworaran noted that pension assets have grown to over N25 trillion, contributing to national development through strategic investments while ensuring regular monthly pensions for over 552,000 retirees and lump sum benefits for an additional 291,735 retirees. Overall, more than 844,000 retirees in both public and private sectors now benefit from steady, reliable, and transparent retirement benefits.
The PenCom D-G detailed the commission’s key interventions, such as Pension Boost 1.0, which enhances pensions for over 241,000 retirees under programmed withdrawal. She mentioned that monthly pensions increased from N12.157 billion to N14.837 billion as of June 2025. Since July, retirees face zero waiting time for pension payments, with immediate access aligned with monthly salary releases from the Federal Ministry of Finance.
Oloworaran highlighted additional measures, including the reintroduction of gratuity for civil servants, issuance of FGN bonds for pension liabilities, stronger prudential standards for operators, and the implementation of five new regulations under the Pension Revolution 2.0 initiative. She also announced the introduction of free health insurance for retirees, starting with lower-income pensioners.
Despite these achievements, Oloworaran acknowledged challenges such as limited coverage expansion, with some states and employers yet to comply fully. She noted that public scepticism, influenced by past experiences, continues to undermine trust in the system. To address this, PenCom plans to conduct nationwide sensitization workshops to ensure federal employees and pensioners fully understand and access CPS benefits.
The Chairman of NSIWC, Mr. Ekpo Nta, represented by the acting Secretary of NSIWC, Chiadi Adighiogu, praised the reforms in pension administration and management under the current administration. He emphasized that proper pension management is crucial for ensuring workers’ financial security in retirement and for maintaining productivity in service.
Nta recalled the establishment of the first pension scheme, the Defined Benefit Scheme (DBS), in 1951, which was later replaced by the Contributory Pension Scheme (CPS) in 2004, and subsequently amended in 2014. The CPS, he explained, is fully funded, privately managed, and based on individual accounts for both public and private sector employees.
He also highlighted that the 1999 Constitution, as amended, mandates pension reviews every five years or in conjunction with any Federal Civil Service salary reviews. This provision underlies the periodic review of pensions to ensure they remain adequate.
Nta concluded by noting that the NSIWC Act empowers the commission to assess current retirement benefits rates and recommend mechanisms for their periodic review, ensuring ongoing financial security for retirees.