Key points
- Only seven states and the Federal Capital Territory (FCT) are fully implementing the CPS and CDBS, according to PenCom.
- Thirteen states are at various stages of partial implementation.
- Six states are still at the bill stage, while pension laws in 10 states are inactive.
Main story
Only seven states and the Federal Capital Territory (FCT) are fully implementing the Contributory Pension Scheme (CPS) and Contributory Defined Benefits Scheme (CDBS), according to the National Pension Commission (PenCom).
PenCom disclosed this in its first-quarter report on pension implementation, based on an update by its States Operations Department, which assessed implementation across the 36 states of the federation and the FCT.
The report identified Lagos, Kaduna, Edo, Osun, Ekiti, Ondo and Jigawa as the states that had fully implemented the CPS/CDBS, alongside the FCT.
However, 13 states were at various stages of partial implementation of the schemes. They are Abia, Anambra, Bauchi, Bayelsa, Benue, Delta, Kano, Katsina, Kogi, Niger, Ogun, Oyo and Rivers.
The commission also reported that pension laws in 10 states were inactive, limiting the implementation of the schemes in those states.
According to the report, Ebonyi, Enugu, Imo, Nasarawa, Sokoto and Taraba had inactive CPS laws, while Adamawa, Gombe, Kebbi and Zamfara had inactive CDBS laws.
Meanwhile, six states remained at the bill stage in their efforts to implement the CPS. They are Akwa Ibom, Borno, Cross River, Kwara, Plateau and Yobe.
The report further showed that 18 states and the FCT had established dedicated Pension Bureaux to administer the scheme.
The CPS was introduced by the Pension Reform Act, 2004 and retained under the Pension Reform Act, 2014, to provide a framework for regular pension contributions by employers and employees towards retirement benefits.
PenCom has continued to encourage states to adopt and effectively implement the CPS as part of efforts to establish sustainable pension arrangements for state workers.
The issues
The PenCom update shows that implementation of contributory pension arrangements remains uneven across the country.
While eight jurisdictions, comprising seven states and the FCT, have fully implemented the CPS/CDBS, other states remain at different stages, ranging from partial implementation to inactive pension laws and the bill stage.
The existence of dedicated Pension Bureaux in 18 states and the FCT indicates that administrative structures have also been established in some jurisdictions, although the report does not state that the establishment of such bureaux automatically means full implementation.
What’s next
PenCom is expected to continue encouraging states to adopt and effectively implement the CPS to strengthen pension arrangements for their workers.
For states where pension laws are inactive or legislation remains at the bill stage, progress towards activating or establishing the necessary legal framework will be required before full implementation can be achieved.
Bottom line
Only seven states and the FCT have fully implemented the CPS/CDBS, while the remaining states are either partially implementing the schemes, operating under inactive pension laws or still working towards legislation.
The figures highlight the uneven adoption of contributory pension arrangements across Nigeria’s 36 states.
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