Only eight states fully comply with CPS – PenCom
Source: PenCom Q4, 2025 report
Nike Popoola
Only eight states in Nigeria are fully compliant with the Contributory Pension Scheme (CPS), according to the National Pension Commission (PenCom), highlighting the slow pace of pension reform adoption at subnational levels.
This was disclosed in the Nigerian Pension Industry Quarterly Report for Q4 2025, which reviewed the performance and challenges of the pension sector across the country.
The report revealed that while 17 states have enacted pension reform laws, they are yet to fully implement the CPS, leaving a significant gap between legislation and actual execution. PenCom said these states now represent the primary focus for intensified engagement aimed at improving compliance.
It further noted that Jigawa State operates a fully implemented Contributory Defined Benefits Scheme, while Kano State remains outside the CPS regulatory framework despite having passed enabling legislation. According to the report, Kano’s pension funds are still held in commercial banks rather than being managed under licensed Pension Fund Administrators (PFAs), as required under the scheme.
Despite the limited state-level adoption, the pension industry recorded positive performance in the period under review. Pension assets grew by 5.22 per cent, while total contributions rose to ₦903.70 billion. Benefit administration also remained stable and efficient across the sector.
PenCom stated that it continued to advance reforms under its digital transformation and governance programme tagged “Pension Revolution 2.0,” aimed at strengthening transparency, efficiency, and inclusion in the pension system.
However, the Commission raised concerns over structural issues affecting long-term sustainability. It noted that real returns across all Retirement Savings Account (RSA) funds remained below inflation on a 36-month basis, although recent investment guideline reforms are expected to improve performance.
The report also highlighted that 92 per cent of registered Personal Pension Plan accounts have recorded no contributions, describing it as a major challenge to deepening pension coverage and trust in the system.
PenCom reaffirmed its commitment to expanding CPS adoption, strengthening compliance frameworks, and ensuring broader retirement security for Nigerian workers.
