PenCom to Enhance State Pension Compliance in Nigeria

The National Pension Commission (PenCom) announced plans to establish dedicated revenue streams for state pension bureaus to improve compliance with the Contributory Pension Scheme. Director-General Omolola Oloworaran revealed this strategy during the 2026 Consultative Forum for States, the Federal Capital Territory, and Licensed Pension Fund Operators in Lagos.

Currently, only eight out of Nigeria's 36 states have fully adopted the scheme, prompting Oloworaran to express dissatisfaction with the low compliance rates. She emphasized the need for stronger political will from governors to protect workers' retirement futures.

Additionally, PenCom raised concerns over financial practices in some states, where pension contributions are deducted from salaries but not remitted to individual Retirement Savings Accounts. Oloworaran warned that this practice poses significant risks to retirement funds, especially during leadership transitions.

To strengthen the pension system, PenCom is consulting with legislative and labor stakeholders to amend existing laws related to the Pension Reform Act.