Retirees awaiting their benefits may face more trouble in accessing their entitlements after years of service in at least 24 out of 36 states in the country.
The National Pension Commission (PenCom) has warned that there is a looming pension crisis in the 24 states that have failed to fully implement the Contributory Pension Scheme (CPS), risking unsustainable debts and intergenerational financial burdens.
WikkiTimes reports that Bauchi, Kano, and others have accumulated billions of naira in retirement benefits for retirees. Kano has paid over 11 billion naira in the last two years.
PenCom, in a statement issued in Abuja, said despite a 2014 federal mandate, only 11 states and the Federal Capital Territory (FCT) have complied, leaving millions of public sector workers exposed to delayed retirement benefits and states facing fiscal collapse.
The Non-Compliant States
PenCom identified Adamawa, Bauchi, Gombe, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Sokoto, Taraba, and Zamfara as states that have passed laws but have not made any meaningful progress in implementation.
Other states in the category are Abia, Bayelsa, Ebonyi, Enugu, Imo, Ogun, Oyo, and Rivers.
It added that apart from enacting the CPS laws, the states failed to remit contributions, register workers, or establish pension bureaus as required by the law.
According to PenCom, other states that include Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe have taken no steps to adopt the scheme, ignoring legal obligations and leaving retirees dependent on the defunct, crisis-prone Defined Benefits Scheme (DBS).
The Compliant States
The statement noted that as of December 31, 2024, only Lagos, FCT, Osun, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra, and Jigawa (under a hybrid model) have operationalized the CPS.
These states consistently remit contributions, ensuring retirees receive benefits promptly. PenCom praised their frameworks as “models for accountability.”
Why It Matters
The CPS mandates monthly employer-employee contributions to Pension Fund Administrators (PFAs), ensuring funds are available at retirement.
In contrast, the DBS—still used by non-compliant states—relies on opaque, debt-ridden government payouts, creating N5.36 trillion in unfunded liabilities nationally.
PenCom warns that delays will “exacerbate pension poverty,” strain future budgets, and erode trust in governance.
The pension authorities caution that to avert the looming crisis and pains for retirees, states must establish functional pension bureaus, register employees with PFAs, and begin monthly remittances.
While PenCom offers technical aid, it stressed that “political will, not just laws,” is critical. States face a race against time to avoid inheriting paralyzing debts.
“The CPS eliminates decades of pension gridlock. States delaying implementation are gambling with workers’ futures and their own economic stability,” the Commission stated.
