KEY POINTS

• PenCom’s Omolola Oloworaran said only seven states and the FCT fully implement the Contributory Pension Scheme despite 30 states enacting laws.
• 23 states have either inactive or partially implemented pension reform laws, leaving civil servants uncertain about retirement.
• The Federal Government has released N758 billion to clear outstanding pension liabilities at the federal level.

PenCom Director-General Omolola Oloworaran on Monday warned that thousands of Nigerian civil servants face uncertain retirements because most state governments have failed to fully implement pension reform laws despite passing the required legislation.

Speaking at a consultative session with state heads of service, Oloworaran said only seven states and the Federal Capital Territory fully implement the Contributory Pension Scheme, even though 30 states and the FCT have enacted pension reform laws or adopted hybrid pension schemes.

Now her warning lands as accrued pension liabilities at the subnational level continue to climb, with retirees in many states still chasing entitlements that should have cleared at the workplace exit.

Where states stand

Specifically, Oloworaran said the gap between law-making and implementation has become the real test. “Out of the 36 states with pension reform laws, only seven states and the FCT are fully implementing them. That leaves 23 states where the laws are inactive or only partially implemented, leaving civil servants uncertain about their retirement future,” she said.

Indeed, the PenCom chief framed pension reform as a constitutional obligation rather than a policy option. She said the real challenge now sits in remitting contributions on time, funding accrued rights and standing up functional pension institutions in every state.

Moreover, Oloworaran issued a blunt warning to laggard governors. “You either get on the train or get hit by the train,” she said, urging state governments to activate dormant laws and align with the wider reform direction.

Federal house in order

Furthermore, Oloworaran said the Federal Government has demonstrated commitment to pension reform by releasing N758 billion to settle outstanding pension liabilities. The disbursement, she said, leaves no outstanding pension liabilities at the federal level.

Today, that disclosure contrasts sharply with the state-level picture, where retirees in some jurisdictions wait months or years for entitlements while serving workers fear stepping into the same queue.

Additionally, Oloworaran flagged PenCom’s “Pension Revolution 2.0” initiative, which focuses on retiree welfare, wider pension coverage, stronger investment performance and technology-driven administration. The program aims to lift coverage beyond formal public-sector workers into the informal economy that dominates Nigeria’s labor landscape.

Civil Service backing

Meanwhile, Head of the Civil Service of the Federation Didi Esther Walson-Jack described pension reform as critical to public sector credibility and the welfare of Nigerian workers.

“Every civil servant who dedicates the best years of his or her life to national service deserves the assurance that retirement will be a period of stability and dignity,” she said.

However, Walson-Jack acknowledged that reform success requires collaboration across ministries, pension bureaus, labor unions and other stakeholders, and urged states still outside the CPS to tap PenCom’s technical support.

Together, the PenCom and federal civil service messages signal a coordinated push to embarrass non-compliant states into compliance, ahead of further enforcement actions PenCom can leverage under existing legislation.

Whether the warning translates into actual remittances and pension fund transfers at the state level will determine whether the message lands. Yet for now, civil servants in 23 states remain caught between laws on paper and the reality of unpaid pensions, with PenCom’s call to action representing the clearest federal nudge to date.