Oloworaran: Enacting Pension Laws Without Implementation Robs Workers of Retirement Benefits

·       NSITF presents prosthetic limbs to 10 beneficiaries under employee’s compensation scheme

·       Faleye declares scheme has restored hope, dignity to Nigerian workers

Onyebuchi Ezigbo, James Emejo and Mariam Adedokun in Abuja

The Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, has warned that enacting pension reform laws without implementation would not guarantee retirement benefits for workers, warning that pension reform was a constitutional obligation states could no longer ignore.

She spoke at the opening of the maiden bi-annual consultative session with Heads of Service of states yet to adopt or fully implement the Contributory Pension Scheme (CPS) or the Contributory Defined Benefits Scheme, in Abuja over the weekend.

Oloworaran said the real challenge confronting states was no longer legislation but execution.

This came as Managing Director/ Chief Executive, Nigeria Social Insurance Trust Fund (NSITF), Oluwaseun Faleye, said the organisation had been able to use the Employees’ Compensation Scheme (ECS) to restoring hope and dignity to Nigerian workers who suffered injuries in the line of duty.

Speaking during the presentation of prosthetic limbs to 10 beneficiaries of the scheme in Abuja, the NSITF boss stated that the ECS goes beyond statutory compensation, reflecting a humane commitment to restoring confidence and preserving the dignity of workers affected by occupational hazards.

However, in her remarks, the PenCom DG said, “Adopting a new law does not deliver pensions, implementation does. Let me speak plainly; pension reform is not a matter of choice. It is not a debate and it is not optional.

“It is a fiscal imperative, a statutory obligation, and a constitutional duty rooted in Section 210 of the 1999 Constitution of the Federal Republic of Nigeria, as amended, which guarantees the pension rights of every civil servant in this country, including those serving at the state level.”

The PenCom boss noted that although 30 states and the Federal Capital Territory (FCT) had enacted laws on the CPS or hybrid pension models, only seven states alongside the FCT were fully implementing the reforms.

Oloworaran said, “That leaves 23 states where the laws exist only on paper or are being implemented partially. This means millions of public servants still face uncertainty about their retirement future — not because there is no law, but because the laws have not been activated. That is the gap we are here to close.”

She stated that six states still had pension reform bills awaiting passage in their Houses of Assembly, expressing optimism that the legislation would be concluded within the year.

The PenCom boss stressed that the old Defined Benefits Scheme had failed and was replaced to guarantee sustainability, transparency and accountability in pension administration.

According to her, “The Contributory Pension Scheme was not designed for convenience. It was designed because the old system failed — and failed miserably.”

She identified the major implementation gaps at the state level as irregular remittance of pension contributions, inadequate funding of accrued rights and weak institutional structures.

She said, “These are not merely technical requirements; they are tests of leadership and signals of governance priority.”

Oloworaran, however, DG urged Heads of Service to take ownership of the reforms, noting that they remained central to workforce administration and policy execution within their states, adding that “As Heads of Service, you are not bystanders in this reform; you are its custodians at the state level”.

She further disclosed that President Bola Ahmed Tinubu approved the release of N758 billion in 2025 to clear outstanding pension liabilities at the federal level.

She declared that “Today, I can confidently say that there are no outstanding pension liabilities at the federal level.”

She said the federal government had also approved payment of exit benefits for retiring treasury-funded civil servants under the CPS, describing it as a landmark reform aimed at improving workers’ confidence in the scheme.

Oloworaran warned states against delaying implementation of pension reforms, insisting that the CPS had proven effective over more than two decades, stating that “states yet to embrace this reform, the train is moving. I urge you to board it now — not tomorrow or next budget cycle, but now”.

Also speaking, Head of the Civil Service of the Federation (HoCSF), Mrs. Didi Esther Walson-Jack, said civil servants deserved retirement security after years of service to the country and commended PenCom’s efforts to deepen pension reforms across states and called for stronger collaboration among stakeholders to ensure effective implementation.

She said, “Every civil servant who dedicates the best years of his or her life to serving our nation deserves the assurance that retirement will not become a period of anxiety, but a season of stability, honour and peace.

“The Contributory Pension Scheme has introduced structure, transparency, accountability and sustainability into pension administration. However, its full benefits can only be realised when implementation is deepened across all levels of government.”

However, the NSITF MD expressed concern that most often, the society tends to overlook the dimensions of workplace injuries, including the psychological and emotional scars that persist long after physical wounds may have healed.

Represented by the General Manager, Claims and Compensation, Mrs. Nkiru Ogunnike, he said the initiative continues to put smiles on the faces of injured workers by supporting their rehabilitation and reintegration into society.

In a statement signed by the NSITF Deputy General Manager Corporate Affairs, Alex Mede, he noted that workplace accidents often result not only in physical injuries but also emotional trauma and uncertainty about the future.

Faleye explained that for many Nigerian workers, a single workplace incident can permanently alter the course of their lives.

He however said the intervention of the NSITF through the ECS provides a second chance for victims to rebuild their lives and regain independence.

Highlighting specific cases, he cited the experiences of two beneficiaries, Daniel Etim, a staff of University of Uyo Printing Press and Festus Opkara of Tower Aluminium Laos, as evidence of the scheme’s impact.

Daniel lost his arm in May 2024 after it was trapped in an industrial machine during a routine workday, an injury which led to amputation

“However, through the intervention of the Nigeria Social Insurance Trust Fund as administrators of the ECS, Daniel received medical support, with his treatment expenses fully covered under the Scheme.

“Beyond the payment of medical bills, the Fund extended further rehabilitative support by providing him with a prosthetic arm, reaffirming its commitment not only to compensation but also to restoring dignity, confidence, and functionality to injured workers.

“Daniel’s story underscores the broader mandate of the Employee Compensation Scheme, a social protection mechanism designed to ensure that Nigerian workers who suffer workplace injuries, disabilities, occupational diseases, or death are not abandoned in moments of vulnerability,” the NSITF MD explained.

“Similar to Daniel’s is the story of Festus, whose workplace accident dates back to 2015. Having lost his hand in a workplace incident, Festus lived for years with the emotional burden that accompanied his physical condition.

Faleye said the ten beneficiaries were among the 78 who recently got fitted with artificial limbs in the ongoing rehabilitation and reintegration program of the NSITF.”

“Beyond the trauma of the accident itself was the constant public attention, the quizzical looks, and the pitying stares that made social interactions difficult,” he stated.

He added that “NSITF provided Festus with a silicone prosthetic hand, helping him regain not only physical confidence but also a renewed sense of inclusion and self-worth”.

Highlighting the significance of the ECS, the MD restated that “For beneficiaries like Daniel and Festus, the interventions of the NSITF have become more than institutional obligations; they represent hope, restoration, and reassurance that injured workers are not left to navigate tragedy alone”.

“These interventions highlight the critical role of the NSITF in implementing the Employee Compensation Scheme, which continues to serve as a vital safety net for Nigerian workers in both the public and private sectors”, he concluded.

One of the beneficiaries, Festus Okpara thanked NSITF for coming to help, adding it has reduced the level of trauma and will now enable him to go out in public and feel free.