The National Pension Commission (PenCom) has hinted about its plans to increase statutory pension contribution rates as part of an ongoing review of the Pension Reform Act (PRA) 2014.
Based on the provisions of the PRA 2014, employers are required to contribute a minimum of 10% of an employee’s monthly emoluments, while employees contribute 8%, bringing total mandatory pension contributions to 18%.
The Director-General of the commission, Ms. Omolola Oloworaran, spoke on the commission’s plans to increase the rates hint on Tuesday during the 2026 Pension Consultative Forum for States, the Federal Capital Territory (FCT), and Licensed Pension Fund Operators (LPFOs) held in Lagos.
According to her, the commission is currently discussing with key stakeholders, including organised labour and members of the National Assembly, on the proposed amendments to the PRA 2014 aimed at enhancing retirement security through higher contribution rates.
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She explained: “We are having active conversations regarding the review of the Pension Reform Act with all necessary parties, including Labour and the National Assembly. It is still at the engagement stage. The rates of contribution will certainly go up, but we must ensure that all key stakeholders buy into it first.”
Oloworaran disclosed that the PenCom was also considering measures to establish dedicated income streams for state pension bureaus to improve compliance and encourage all states to adopt the CPS due to slow pace of adoption of the CPS at the sub-national level with only eight states currently operating the scheme in compliance with the law.
She said: “I am not satisfied at all with where we are. If you were to rate it, we still have an ‘F9.’ We still have only eight states out of 36 states complying. There has to be more political will. Governors must prioritise their workers and their future when they retire—not just worry about today. All 36 states should be under the Contributory Pension Scheme.”
The Director-General said that as part of the commission’s efforts to address concerns raised by non-compliant states regarding funding and operational challenges, the commission was examining ways to create sustainable revenue sources for state pension bureaus.
The industry expert further clarified “We have listened to them, and I think there is a good point in what they are saying. We will explore ways to create income streams for state pension bureaus. It might not be in the exact “In my personal opinion, deducting funds from employees and putting them in a state account is something that should never happen,
“Any incoming governor who doesn’t understand the original purpose of those funds could divert them elsewhere. That results in pension obligations skyrocketing and leads to a broken system in the future. We will actively engage those states to stop this practice”, Oloworaran assured.
The latest data published by the commission on the nation’s assets as of May this year showed that the value stood at N31.32 trillion, representing a year-on-year increase of 29.5% from N24.18 trillion in May 2025, demonstrating the increasing importance of pension savings in Nigeria’s financial system.
It would be recalled that the Pension Reform Act 2014 was enacted following a review of the 2004 pension Act, which introduced the Contributory Pension Scheme and established the PenCom as the regulatory commission of the pension industry.
