Over 10mn Nigerians Benefiting from Contributory Pension Scheme — PenCom
By Patience Ikpeme
Nigeria’s Contributory Pension Scheme (CPS) is changing the face of retirement for more than ten million Nigerians, offering stable monthly income and driving national economic growth.
The CPS, introduced through the Pension Reform Act of 2004 and further strengthened in 2014, replaced the country’s troubled pension system with a transparent, sustainable model that now covers workers in the public and private sectors, as well as artisans and self-employed individuals.
At a sensitization workshop on the workings of the CPS for employees and pensioners of federal government treasury-funded ministries, departments, and agencies in Abuja, the Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, represented by Mr. Usman Musa, Director of the Contribution and Bond Redemption Department, said the scheme has reshaped Nigeria’s pension landscape.
According to Oloworaran, “The CPS has significantly rewritten Nigeria’s pension story. With more than 552,000 retirees receiving monthly pensions and assets surpassing ₦25 trillion, we are ensuring retirees live with dignity while contributing to national development.”
Musa added that PenCom’s reforms have led to measurable improvements in retirees’ welfare. He disclosed that initiatives such as Pension Boost 1.0 resulted in an increase of over ₦2.6 billion in monthly payments for more than 241,000 retirees.
He further explained that since mid-2025, waiting periods for accessing pensions have been eliminated, allowing retirees to receive financial relief without delay. “The federal government also secured ₦758 billion in bonds to clear pension liabilities, which has reinforced confidence in the system,” he said.
Also speaking, the Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), Mr. Ekpo U. O. Nta, represented by Mr. Akin Abe, Head of Compensation, said the CPS has brought efficiency and stability to Nigeria’s pension administration.
According to him, “The CPS’s fully funded, privately managed accounts replaced the old defined benefit scheme, fostering efficiency and financial stability for millions of Nigerians post-retirement.”
Data from PenCom shows that the scheme continues to expand steadily, with Retirement Savings Accounts exceeding 10.6 million by early 2025. Pension assets grew by over ₦800 billion in the first quarter of the year alone, signaling sustained confidence in the system.
Despite this progress, both commissions acknowledged that challenges remain, particularly in expanding coverage to states and workers in the informal sector.
Musa noted that PenCom and the NSIWC are working closely with stakeholders to drive wider participation, enforce compliance, and strengthen service delivery across the country. “Our collaboration aims to create a pension system that guarantees every Nigerian can retire with financial security and dignity,” he said.
Observers say the CPS now stands as more than just a pension mechanism — it is a major pillar of Nigeria’s social security framework and a contributor to economic development, promising a future where retirement is secure, inclusive, and dignified.
