PenCom Lists Hurdles Facing Pension Sector Despite Two Decades of Reforms

PenCom Lists Hurdles Facing Pension Sector Despite Two Decades of Reform

 

 

The National Pension Commission (PenCom) has said that despite notable progress in the implementation of the Contributory Pension Scheme (CPS) over the past 20 years, the pension industry still faces major challenges.

 

Director-General of PenCom, Mrs. Omolola Oloworaran, stated this on Wednesday in Abuja during a sensitisation workshop for judges of the National Industrial Court of Nigeria (NICN).

 

Represented by Bello Malabu, the Commission’s Acting Commissioner for Administration, Oloworaran identified delayed remittances, accrued pension rights, and transition issues affecting judicial officers as some of the key challenges confronting the sector.

 

She reaffirmed the Commission’s commitment to deepening collaboration with the judiciary to enhance effective pension administration and understanding of pension matters.

 

“Through the intervention of President Bola Tinubu, the Federal Government now pays retirement benefits of Treasury-funded Ministries, Departments, and Agencies (MDAs) as and when due,” she said.

 

 

 

Oloworaran disclosed that discussions have begun with the National Judicial Council (NJC) to address outstanding issues related to accrued benefits of judges who transitioned into the CPS before their elevation to the Bench.

 

She commended the judiciary for its objective handling of pension-related cases, assuring that all challenges would be resolved fairly and transparently.

 

The DG also introduced the Personal Pension Plan (PPP) — a voluntary and more flexible pension product aimed at professionals, self-employed persons, and others not covered under the mandatory CPS.

 

“We urge Justices and Judges who are exempted from the CPS to consider participating in the PPP to strengthen their retirement security and that of their dependents,” she added.

 

 

 

At the event, Oloworaran unveiled the first volume of the Pension Law Report, a compendium of landmark judgments on pension matters delivered by the NICN. She commended Justice Benedict Kanyip, President of the NICN, for his support and contribution to pension jurisprudence in Nigeria.

 

In his remarks, Justice Kanyip called for a review of political pensions and severance packages, describing them as inconsistent with principles of social justice.

 

“It is not morally right to pay an elected public officer or political appointee pension and gratuity for serving only three to eight years,” he said.

 

 

 

The NICN President also expressed concern that only about 10 percent of Nigeria’s working population is currently covered by formal pension schemes, citing non-remittance, weak enforcement, and delays in benefit payments as major constraints.

 

He urged PenCom to tighten compliance mechanisms, impose stiffer penalties on defaulting employers, and leverage digital platforms to enhance transparency and efficiency.

 

Kanyip maintained that while the CPS remains a vital framework for protecting workers’ post-employment rights, it requires continuous adaptation to sustain fairness and effectiveness.