CPS Adoption: PenCom Moves to Create Income Streams for State Pension Bureaus

BY NKECHI NAECHE -ESEZOBOR—In a bid to encourage more states to join the Contributory Pension Scheme (CPS), the National Pension Commission (PenCom), on Tuesday in Lagos said is looking at ways to provide steady sources of funding for state pension agencies.

The Director-General of PenCom, Ms. Omolola Oloworaran, disclosed this today during the 2026 Consultative Forum for States, the Federal Capital Territory (FCT), and Licensed Pension Fund Operators (LPFOs).

This gathering helps the main agency work closely with the commission so everyone handles retirement funds the same way across the country.

Addressing the concerns raised by the state representatives, she said “You know, it’s not something I can tell you. This is what we will do. What I can tell you is that we’ve listened to them. I think that there’s a good point in what they are saying. We would explore ways to create income streams for state pension bureaus, which is what I told them. So we’ll certainly look into it. Might not be in the form in which they are prescribing, but we will do something.”

Expressing strong disappointment over the poor adoption rate across the country, the Director-General stated that she was not satisfied with the current performance of state pension boards, noting that only eight out of 36 states are presently implementing the Contributory Pension Scheme (CPS).

“No, I’m not satisfied. We still have eight states out of 36 states, so I’m not satisfied. I think there has to be more political will. Governors have to prioritize their workers more, their future, the future of the workers when they retire. You know, not just worry about what you need to do today, but what happens to your workers when they retire. I think a whole lot needs to be done. So I am not satisfied at all where we are. We should not be on eight states. All 36 states should be under the contributory membership, She stressed.

She noted that the scheme is not merely another pension model; “it is a governance framework, one that brings structure, discipline, transparency, long-term sustainability to retirement administration, and critically for the states represented in this room, it provides the framework within which every legacy-defined benefit obligation can be managed responsibly while building a pension system that remains financially sustainable for generations to come.

“The question before every state is no longer whether pension reform is necessary. I believe that debate is settled. The question is whether we have the courage and foresight to build a pension system that will be protecting workers 20, 30, 50 years from today-a system that would outlast every single one of us in this room. That is not a technical question, by the way. It is the test of leadership. That is the test of leadership.

Drawing global comparisons, she warned that “Jurisdictions that have delayed pension reform now confront overwhelming liabilities, widening fiscal pressures, and broken promises to the very retirees they swore to protect. Jurisdictions that acted early built resilient systems, systems that protected workers, strengthened public finances, and deepened citizens’ confidence in the government itself.

She added that “Two paths, two destinations, and every Nigerian state now stands at the fork of the road, I would just say more like at the end of the road. Should you go right or do you go left? You need to choose the right path. So let me say this plainly: every state will ultimately be remembered for the pension system it leaves behind.

“The true measure of how a government values its worker is not how it treats them today, whilst they serve. It is whether it honors them after they have served. Pension reform, therefore, is not about balancing today’s books. It’s nothing about today, but it’s about keeping tomorrow’s promise when. our day workers vote. This is why we are gathered here today, and this is why this forum matters a great deal. We are not here just to review process or progress. We are here to accelerate it, to remove obstacles, to agree on solutions, and live with clear commitments that move every state measurably closer to a pension system that is sustainable, inclusive, and leaves no worker behind.

She reassured them that the commission ambition is straightforward: a Nigeria where every worker retires with dignity, every end benefit is paid on time, and no one in any state, in any sector, at any income level is left behind. In pursuit of that ambition. We have delivered practical tools for this journey, or some of some practical tools for this journey.”