The National Pension Commission, PenCom, has opened discussions with the Lagos State Government and the Lagos State Pension Commission, LASPEC, over concerns about pension adjustments and wage awards affecting retirees under the Contributory Pension Scheme, CPS.
According to The PUNCH, PenCom disclosed this in a statement issued on Monday, following protests by retirees affiliated with the Nigeria Union of Pensioners and the CPS sector in Lagos.
The retirees gathered around Lagos House in Ikeja to demand the implementation of consequential pension adjustments, payment of approved wage awards and settlement of outstanding pension arrears.
PenCom said it understood the concerns of retirees and recognised the difficulties caused by delays in implementing approved adjustments.
The commission explained that discussions with the Lagos State Government and LASPEC include the need to extend appropriate pension adjustments to eligible retirees under the CPS.
It noted that implementing pension increases within the CPS involves several technical procedures, including determining eligible beneficiaries, calculating actuarial liabilities, securing the required funding and providing operational guidelines to Pension Fund Administrators, PFAs.
PenCom said it was working with the Lagos State Government, LASPEC, PFAs and representatives of the pensioners’ unions to achieve a transparent and sustainable resolution.
Lagos pension payments
The engagement comes as Lagos continues to rank among states with strong compliance under the CPS.
Data from LASPEC shows that the Lagos State Government has paid a total of N168.2 billion in accrued rights to more than 48,000 retirees since the scheme began in 2007.
Under Governor Babajide Sanwo-Olu, more than N92 billion was paid to over 25,000 retirees between May 2019 and mid-2026.
The state also made a N5 billion single payment in July 2024 as part of efforts to reduce outstanding pension liabilities.
Accrued rights refer to pension and gratuity benefits earned by workers who were employed before the transition to the CPS in 2007. These obligations are funded directly by the government rather than through Pension Fund Administrators.
However, delays in applying recent wage awards and consequential pension adjustments to CPS retirees have continued to generate concerns across several states.
Under the CPS, pension adjustments require actuarial calculations and additional funding into individual Retirement Savings Accounts. This differs from the former Defined Benefits Scheme, where pension increases were paid directly from government funds.
PenCom also noted wider funding challenges within Nigeria’s pension industry, with regulatory data showing that many registered Retirement Savings Accounts remain unfunded due to irregular contributions by employers.
The commission reaffirmed its commitment to its regulatory responsibilities and said it would continue to ensure compliance with the provisions of the Pension Reform Act 2014.
Source: The PUNCH
