By Victor Ahiuma-Young

The National Pension Commission PenCom, has described the recent law passed by the National Assembly to remove members of the Nigeria Police Force from the Contributory Pension Scheme, CPS, as flawed, though likely made in good faith.

Recall that the Nigerian Senate had on December 4, 2025, passed the Nigeria Police Force Pension Board Bill removing the Police from the Contributory Pension Scheme.

This followed earlier action by the House of Representatives, which passed a similar bill on October 21–22, 2025.

However, the Director General of the Commission, Ms Omolola Oloworaran, during an interaction with journalists in Lagos, explained that the decision appeared to stem from prolonged protests by police officers at the National Assembly complex, but noted that it reflected gaps in lawmakers’ understanding of pension reforms.

She stressed that continuous engagement with the legislature would remain PenCom’s primary strategy.
According to her, “the decision was flawed, but it was likely taken in good faith,” noting that sustained engagement, enlightenment and the submission of formal reports would continue to ensure better appreciation of pension reforms by lawmakers.

Despite the exit law, the PenCom DG reiterated the Commission’s commitment to securing improved pension benefits for police officers, stressing that the welfare of serving and retired personnel remains a priority.

Addressing concerns about PenCom’s reliance on moral suasion to drive compliance, Oloworaran explained that the approach remains effective in the country’s politically sensitive environment.

She said alternative measures, including the involvement of international funding partners, would only be considered if sustained engagement fails, noting that antagonising state governments was not advisable, especially where genuine compliance challenges exist.

From a regulatory standpoint, she identified compliance as PenCom’s major challenge over the past year. She disclosed that the Commission has signed memoranda of understanding with the Independent Corrupt Practices and Other Related Offences Commission, ICPC, and continues to collaborate with the Nigeria Labour Congress, NLC, and the Trade Union Congress of Nigeria, TUC, to enforce employer compliance.

She revealed that recovery efforts have yielded results, with ¦ 1.44 billion recovered from defaulting employers in previous years and ¦ 2.04 billion recovered in the third quarter of this year alone.

However, she expressed concern that compliance within the media industry remains particularly weak despite repeated engagements.

Oloworaran also identified excessive documentation, especially among treasury-funded ministries, departments and agencies, MDAs, as another challenge.

She said PenCom is streamlining documentation requirements to ease enrolment for contributors and retirees, while acknowledging that bureaucratic delays remain a reality of government processes.

On awareness and education, the PenCom DG noted that many Pension Fund Administrators, PFAs, scaled back public enlightenment activities after COVID-19.

She said the Commission will now enforce mandatory awareness campaigns across the six geopolitical zones to improve pension literacy.

She also dismissed claims that the ongoing recapitalisation of PFAs had been suspended, stressing that all operators must meet the requirements by June 2027 or risk losing their licences.

According to her, mergers and acquisitions are expected as part of the process, with industry stakeholders already aligned with the policy.