ON WEDNESDAY, March 25, 2025, the National Pension Commission (PenCom) raised concerns that out of the 36 states in Nigeria, only 11, Lagos, Osun, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra, and Jigawa, along with the Federal Capital Territory (FCT), are complying with the provisions of the Pension Reform Act (PRA) 2014.
PenCom stated that some states have established benchmarks for sustainable pension administration by ensuring retirees receive their entitlements promptly. These states consistently remit both employer and employee pension contributions under the Contributory Pension Scheme (CPS). Meanwhile, Jigawa follows the Contributory Defined Benefits Scheme (CDBS) for its pension contributions.
The issue of pension rights protection for public servants and retirees in Nigeria has become a major concern, particularly in states that have yet to enact pension laws or those that have adopted the CPS but fail to implement it effectively.
PenCom also noted that several states have enacted laws to adopt the CPS but have yet to make significant progress in its implementation. These states include Abia, Adamawa, Bauchi, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ogun, Oyo, Rivers, Sokoto, Taraba, and Zamfara. PenCom urged them to accelerate efforts toward full implementation, particularly the timely remittance of both employer and employee contributions.
ALSO READ: Trumps And Customised Democracies In Africa; By Aminu Habibu Jahun
Furthermore, PenCom observed that some states, Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe, have not yet commenced CPS implementation. It strongly encouraged these states to fast-track the enactment of CPS laws and take immediate steps toward full implementation to ensure a secure and sustainable pension system for their workforce.
Constitutional guarantees of right to pension
The framers of the 1999 Constitution of the Federal Republic of Nigeria (as amended) recognized the indispensable role of public servants in governance and national development.
In acknowledgment of their dedication and service to the nation, the constitution enshrines their right to a pension, ensuring financial security in retirement.
This constitutional safeguard is not merely a privilege but a legally enforceable right designed to guarantee that retired public servants can maintain a standard of living reasonably comparable to what they enjoyed during their active years.
ALSO READ: The March Of Nigerians In March; By Owei Lakemfa
Any attempt to undermine or withhold these entitlements is not only a violation of constitutional and statutory provisions but also an affront to the principles of fairness, social justice, and the rule of law.
Section 210(1) of the Constitution states: “Subject to the provisions of subsection (2) of this section, the right of a person in the public service of a state to receive pension or gratuity shall be regulated by law.”
The inability to afford healthcare for age-related conditions such as diabetes, hypertension, and arthritis worsens their situation. In extreme cases, unpaid pensions push retirees into destitution, forcing them to beg or live in deplorable conditions.
Further reinforcing this right, subsection (2) provides that: “Any benefit to which a person is entitled in accordance with or under such law as is referred to in subsection (1) of this section shall not be withheld or altered to his disadvantage except as is permissible under any law, including the code of conduct.”
ALSO READ: Is Nigeria Headed For A One-Party State? By Jibrin Ibrahim
Additionally, subsection (3) mandates that: “Pension shall be reviewed every five years or together with any State Civil Service salary reviews, whichever is earlier.”
These provisions ensure that retired public servants are not deprived of their earned benefits and that their pensions are periodically adjusted to reflect economic realities.
PRA 2004 and its impact
In 2004, Nigeria undertook a comprehensive pension reform with the enactment of the Pension Reform Act 2004, which was later repealed and replaced by the PRA 2014, effective from July 1, 2014.
This law (PRA 2004) established a CPS for employees in the Federal Public Service, the Federal Capital Territory, and the private sector. It however excluded public sector employees at the state and local government levels. This exclusion resulted from opposition by state governors, who argued that pension matters were not within the exclusive legislative jurisdiction of the National Assembly.
ALSO READ: Why America Will Attack Iran; By Hassan Gimba
Section 2(1) of the Pension Reform Act 2014 establishes that the CPS applies to all public sector employees across the Federation, including those in the Federal Capital Territory, states, and local governments, as well as private sector workers.
State governors have legal and moral obligations to comply with constitutional provisions that guarantee pension rights, ensuring that those who have dedicated their lives to public service receive the security and dignity they deserve in retirement.
However, in accordance with the 1999 Constitution (as amended), state governments have the constitutional authority to regulate pension matters within their jurisdictions. Consequently, each state is required to adopt the CPS by enacting appropriate pension legislation.
The role of the National Council of State
In August 2006, the National Council of State approved the adoption of the CPS for all states and local governments. During the meeting, PenCom presented a draft Model State Pension Law on the CPS for consideration. State governments were instructed to adapt the model law to suit their specific needs. Additionally, the Council mandated PenCom to review draft state pension laws and provide guidance throughout the implementation process.
The Council’s decision was necessitated by the repeal of the Pension Act 1990, which had previously applied to public servants at all levels — by Section 99(1)(a) of the Pension Reform Act 2004. This repeal inadvertently left state public servants without a legal framework guaranteeing their pension rights, a situation that contradicted Section 210(1) of the Constitution.
The Implications of non-Enactment, poor implementation
The issue of pension rights protection for public servants and retirees in Nigeria has become a major concern, particularly in states that have yet to enact pension laws or those that have adopted the CPS but fail to implement it effectively.
The absence of a proper legal framework in these states and the failure to enforce existing laws expose retirees to severe socio-economic hardships, including financial insecurity, poor healthcare access, destitution, and increased poverty.
Public servants’ pension rights and job security
For public servants still in active service, the non-enactment of pension laws in some states creates uncertainty regarding their retirement benefits.
Without a structured pension framework, workers face the risk of not knowing how or when they will receive their pensions, a lack of transparency and accountability in fund management, and possible corruption as individuals seek to secure their future.
Even in states with pension laws, ineffective implementation leads to irregular deductions, lack of employer contributions, and administrative inefficiencies, ultimately affecting workers’ pension savings and morale.
The reality of delayed or unpaid pensions
Retirees in states without pension laws or those with poorly implemented CPS experience delayed or unpaid pensions, leading to severe hardship.
Many retirees rely entirely on their pensions for survival, and irregular payments result in financial struggles, dependency on family or charity, and a loss of dignity.
The inability to afford healthcare for age-related conditions such as diabetes, hypertension, and arthritis worsens their situation. In extreme cases, unpaid pensions push retirees into destitution, forcing them to beg or live in deplorable conditions.
Challenges for retirees
In states where pension schemes are either non-existent or poorly implemented, retirees often lack access to affordable healthcare coverage. Many state retirees must pay for medical expenses out-of-pocket. This financial burden leads to untreated ailments, increased health complications, and premature deaths due to financial and psychological stress.
Retirement should be a period of rest and dignity after years of service, but in many Nigerian states, the absence or poor implementation of pension laws forces retirees into economic hardship, homelessness, and untimely death.
A society that neglects its retirees not only erodes public trust in government institutions but also discourages future generations from serving in the public sector, ultimately weakening the foundations of governance and economic stability. It is, therefore, imperative that urgent legislative and administrative measures be taken to uphold pension rights, in accordance with the Constitution and international labour standards.
Many pensioners struggle to afford rent, food, and medical care, leading to severe psychological distress.
The anxiety caused by unpaid pensions contributes to depression, loss of self-respect, and deteriorating mental health, reducing many retirees to a life of begging.
Way forward
To address these challenges, state governments must take urgent steps to protect pension rights and improve retirees’ welfare.
These include enacting pension laws in states that have not yet adopted them, ensuring full implementation of the CPS where it exists, and prioritizing the regular payment of pensions and gratuities.
ALSO READ: In A World Of Shifting Alliances, Cuba Stands On Principles; By Owei Lakemfa
Additionally, a mandatory health insurance scheme for retirees should be introduced to ease their financial burden, and pensioners’ welfare boards should be established to address their concerns and grievances.
Conclusion
The failure of some states to enact pension laws and the poor implementation of existing pension schemes constitute a clear violation of the constitutional rights of public servants.
This dereliction of responsibility has left many workers uncertain about their future and has condemned retirees to financial hardship, contrary to the principles of social justice and good governance.
State governors have legal and moral obligations to comply with constitutional provisions that guarantee pension rights, ensuring that those who have dedicated their lives to public service receive the security and dignity they deserve in retirement.
A society that neglects its retirees not only erodes public trust in government institutions but also discourages future generations from serving in the public sector, ultimately weakening the foundations of governance and economic stability. It is, therefore, imperative that urgent legislative and administrative measures be taken to uphold pension rights, in accordance with the Constitution and international labour standards.
Comrade Takor was a two-term President of NASU, a two-term National Treasurer of NLC and an inaugural member of the Board of PenCom. Comrade Takor retired as a Director in federal service and is now a Lagos-based legal practitioner. He is an alumnus of the National Institute of Policy and Strategic Studies (NIPSS), Kuru-Jos, Plateau State. He is currently the Vice Chairman/Chairman Human Rights Committee of Nigerian Bar Association (NBA), Epe Branch.
