The National Pension Commission (PenCom) is planning fresh incentives aimed at encouraging more state governments to adopt the Contributory Pension Scheme (CPS), as part of efforts to strengthen retirement security for workers across the country.
Director-General of PenCom, Omolola Oloworaran, disclosed this after the commission’s second quarter consultative meeting with pension industry stakeholders in Abuja.
She said the commission remained concerned that many states were yet to fully implement the CPS, leaving workers and retirees vulnerable to delays and uncertainty in the payment of retirement benefits.
According to her, only about eight states have fully embraced the scheme, although more are expected to join in the coming months.
“We are working on incentives that can make the states come along with this plan,” Oloworaran said.
She revealed that one additional state was on the verge of joining the scheme, while another had recently made significant progress towards implementation.
The PenCom boss explained that the commission had also intensified engagements with state governors through the Nigeria Governors’ Forum (NGF) to educate them on the benefits of the CPS and address concerns about its implementation.
“I was recently engaging state governors to present the Contributory Pension Scheme to them and explain its benefits. Some of them are still trying to understand how the scheme works, so our engagements are continuing,” she said.
Oloworaran stressed that PenCom considered the expansion of the CPS at the state level a major priority because workers in states operating unfunded pension systems remained exposed to the risk of delayed or unpaid retirement benefits.
“We worry that workers and retirees in states that are not under the Contributory Pension Scheme may not receive their retirement benefits as and when due. That is why we continue to encourage every state to come under the scheme,” she said.
Beyond expanding the CPS, the Director-General said PenCom was intensifying efforts to improve pension awareness and financial literacy among Nigerians.
She announced that the commission would host the maiden National Pension Week from September 15 to September 19, 2026, to increase public awareness about pensions and encourage wider participation in retirement savings.
According to her, the initiative will bring together regulators, pension fund administrators, contributors, employers and other stakeholders to discuss reforms and promote greater understanding of the pension industry.
Oloworaran said the commission had identified low pension literacy as one of the major barriers to expanding pension coverage, particularly among workers in the informal sector.
She noted that PenCom was implementing several awareness initiatives to educate Nigerians on the importance of retirement planning and improve accountability and transparency within the pension industry.
As part of efforts to deepen pension penetration, she disclosed that the commission was also targeting women through the Personal Pension Plan.
Although PenCom had initially set an ambitious target of enrolling one million women, she admitted that progress had been slower than expected.
“The numbers are still low, which is why we are focusing more on awareness and pension literacy,” she said.
She explained that the commission was partnering with market women associations, trade groups and other informal sector organisations across the country to increase enrolment under the Personal Pension Plan.
The PenCom DG also said the commission was strengthening the pension industry’s engagement with the Nigerian capital market to ensure that pension assets continue to support economic growth while delivering competitive returns for contributors.
According to her, the pension industry controls the country’s largest pool of long-term domestic savings, making it imperative for operators to play a more active role in capital market development.
She further disclosed that PenCom had reached an advanced stage in the establishment of the proposed pension industry infrastructure fund, which is expected to channel long-term pension capital into critical infrastructure projects.
Oloworaran said a framework for the initiative had already been developed and was currently being reviewed by stakeholders, with a final decision expected within the next one or two months.
She added that PenCom was also examining more sophisticated investment strategies, including a liability-driven investment framework, to improve retirement outcomes and ensure retirees receive better pensions.
On the agitation by some police personnel to exit the Contributory Pension Scheme, the PenCom boss said the commission remained committed to constructive engagement with all stakeholders.
She acknowledged that police officers were demanding improved retirement benefits, describing their concerns as legitimate, but maintained that ongoing dialogue had significantly reduced protests over the issue.
“The question is not whether they should exit or remain in the scheme. The real issue is how we can improve their retirement benefits and ensure they enjoy a better standard of living after service,” she said.
Oloworaran expressed optimism that continued collaboration with relevant government agencies would lead to a lasting resolution of the matter while preserving confidence in Nigeria’s pension system.
