PenCom seeks stronger judicial collaboration on retirement reforms

…unveils pension law report

…announce rebranded Personal Pension Plan to broaden coverage

The National Pension Commission (PenCom) has reaffirmed its commitment to strengthening collaboration with the judiciary in advancing Nigeria’s pension reform agenda and ensuring effective retirement benefits administration.

Omolola Oloworaran, Director-General of PenCom, made the call on Wednesday, in Abuja, during a Sensitisation Workshop on the Contributory Pension Scheme (CPS) for Honourable Judges of the National Industrial Court of Nigeria (NICN).

Oloworaran described the engagement as both timely and strategic, emphasising that it provides a platform to deepen understanding, clarify concerns, and strengthen collaboration between the judiciary and the pension industry.

The PenCom DG acknowledged that while significant progress had been made over the past 20 years, challenges persist, particularly in the areas of accrued pension rights, delayed remittances, and transition issues affecting some judicial officers.

She, however, disclosed that through the intervention of President Bola Ahmed Tinubu, the Federal Government now pays retirement benefits of Treasury-funded Ministries, Departments, and Agencies (MDAs) as and when due.

Oloworaran further revealed that the Commission had opened discussions with the National Judicial Council (NJC) to resolve pending issues relating to accrued benefits of some judges who transitioned into the CPS before their elevation to the Bench, assuring that such matters would be handled fairly and transparently.

Highlighting the judiciary’s pivotal role in pension law interpretation and enforcement, she commended the objectivity and rigour with which judges have handled pension-related cases. She emphasised that continuous judicial education on pension law and policy was essential for deepening jurisprudence and improving adjudication in pension matters.

In addition, the PenCom DG introduced the Personal Pension Plan (PPP), a rebranded voluntary pension product designed to provide greater flexibility and inclusiveness for professionals, self-employed persons, and individuals in non-traditional employment arrangements. She encouraged judicial officers and other senior public officials to explore the scheme as a means of enhancing their financial security in retirement.

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“Permit me, your lordships, at this juncture, to share with you the benefits of a unique pension product recently rebranded by the Commission, the Personal Pension Plan (PPP). This product complements the mandatory CPS by offering greater flexibility and inclusiveness to participants. The PPP is designed to cater for individuals who may not be covered under the mandatory scheme, including professionals, self-employed persons,
individuals in non-traditional employment arrangements and those seeking to make voluntary contributions.

“We earnestly encourage your Lordships, and other Honourable Justices and Judges of all Superior Courts in Nigeria who are exempted from the CPS, to consider participating in the PPP as a means of enhancing your retirement security and that of your dependents. As custodians of justice, your welfare is paramount and PenCom remains steadfast in its commitment to working with you to ensure that this objective is fully realised.”

Oloworaran also announced the unveiling of the first volume of the Pension Law Report, a compendium of landmark judgments on pension matters delivered by the NICN and other courts. She lauded Justice Benedict Bakwaph Kanyip, President of the NICN, for his support in facilitating the publication and for his commitment to promoting sound pension jurisprudence in Nigeria.

On his part, Benedict Bakwaph Kanyip, President of the National Industrial Court of Nigeria (NICN), called for a comprehensive reassessment of political pensions and severance packages, describing them as inconsistent with social justice and the spirit of public service.

Kanyip said Nigeria’s pension landscape must be strengthened to ensure fairness, efficiency, and broader inclusion of workers, particularly those in the informal sector.

He underscored that labour rights extend beyond active employment to include post-employment entitlements such as pensions.

Justice Kanyip decried the moral and social imbalance created by the payment of lifetime pensions and gratuities to former governors and political appointees who already earn substantial benefits while in office, contrasting it with the struggles of career civil servants who face delays and shortfalls in accessing their contributory pension benefits.

Quoting the admonition of Justice Agim, JCA (as he then was), in Governor of Kogi State & Ors v. Ahmed & Ors, he said: “It is not morally right to pay an elected public officer or political appointee pension and gratuity for holding such an office for three to eight years… any law that provides for the payment of pension and gratuity to such office holders lacks moral justification, promotes social injustice, and cannot be democratic,”

On the broader pension system, he highlighted persistent challenges such as non-remittance of contributions, poor enforcement, inadequate coverage, and delays in benefit payments, noting that only about 10% of Nigeria’s working population is covered by formal pension schemes.

To ensure sustainability, he urged PenCom to tighten compliance mechanisms, impose stricter penalties on defaulting employers, and explore the use of digital systems to improve transparency and payment efficiency.

He emphasized that the Contributory Pension Scheme (CPS) remains a crucial framework for protecting Nigerian workers’ post-employment rights but requires constant adaptation to remain fair and effective.

“The payment of pensions to political office holders appears to contradict the principles of public service and democratic values, and has the effect of making the contributory pension scheme pale into insignificance.”