The National Pension Commission (PenCom) has urged state governments to implement the Contributory Pension Scheme (CPS) to boost the welfare of retirees.
According to the pension industry regulator in an advertorial on Wednesday, only 11 states have commenced the implementation of the CPS as of December 2024.
The Pension Reform Act (PRA) of 2004 was landmark legislation that revolutionised pension administration in Nigeria by introducing the Contributory Pension Scheme. Under this law, employees and employers jointly contribute to a retirement savings account for each worker, making pensions more sustainable.
According to PenCom, only states like Lagos, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra and Jigawa States, as well as the Federal Capital Territory have implemented the CPS.
“Setting the pace of sustainable pension administration, ensuring that retirees receive their entitlement promptly. The following states are yet to commence the implementation: Akwa Ibom, Borno, Kwara, Plateau, Cross River and Yobe. These states are encouraged to enact their CPS laws and commence implementation,” said PenCom.
Meanwhile, some states have enacted the law to adopt the CPS but are yet to take significant steps toward implementation.
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