By Esther Agbo
At a recent forum in Lagos, the Acting Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, highlighted significant strides made by Nigerian states in pension fund management, emphasising the increasing adoption and implementation of the Contributory Pension Scheme (CPS) across the country.
Speaking at the recent Quarterly Consultative Forum for states and the Federal Capital Territory pension bureaus/boards/commissions in Lagos, Oloworaran disclosed that 25 states, including the Federal Capital Territory, have passed pension laws mandating their participation in the CPS.
However, she noted that only eight states are currently fully compliant in their implementation. Six other states have opted for the Contributory Defined Benefits Scheme (CDBS), a hybrid model that combines elements of the CPS.
She said, “Six other States have adopted the Contributory Defined Benefits Scheme, a hybrid of the CPS. However, only eight States are fully implementing the CPS, out of the 25 States that have enacted pension laws.”
Among the states, Lagos stood out for its robust approach to pension management. Oloworaran praised the state’s consistent remittance of contributions, funding of accrued rights, and its innovative use of pension funds to finance infrastructure projects.
Notably, the Lekki-Ikoyi Bridge in Lagos was partially funded through state-issued bonds backed by pension funds, a model that other states, including Niger, Osun, Ekiti, and Delta, have also adopted.
However, in terms of pension asset growth, Oloworaran reported that the total assets under the CPS have surged to N20.79 trillion as of July 2024. This growth is bolstered by the steady remittance of contributions, with states collectively remitting over N236.7 billion between January 2020 and the second quarter of 2024.
“Pension fund assets under the CPS continue to grow, with total Assets under Management soaring to N20.79tn as of July 2024. We are pleased to note the steady remittance of contributions by States, with over N236.7bn remitted by States between January 2020 and the second quarter of 2024,” he said.
The Permanent Secretary at the Office of the Head of Service, Sunkanmi Oyegbola, echoed the call for transparency and efficiency in pension fund administration.
She urged pension fund administrators to ensure the timely processing of retirement benefits.