The National Pension Commission (PenCom) has said employers may soon be required to contribute more towards workers' pensions as part of proposed amendments to the Pension Reform Act (PRA) 2014 aimed at strengthening retirement security in Nigeria.
Director-General of PenCom, Omolola Oloworaran, disclosed the plan during the 2026 Pension Consultative Forum for states, the Federal Capital Territory (FCT) and Licensed Pension Fund Operators (LPFOs) held in Lagos.
She said the commission is consulting organised labour, the National Assembly and other stakeholders on the proposed reforms, stressing that discussions remain at the consultation stage.
Under the current pension framework, employers contribute a minimum of 10 per cent of an employee's monthly emoluments, while workers contribute eight per cent, making a combined mandatory contribution of 18 per cent.
According to Oloworaran, the proposed increase in employers' contributions is intended to improve retirement benefits and enhance the long-term sustainability of the Contributory Pension Scheme (CPS).
"We are having active conversations regarding the review of the Pension Reform Act with all necessary parties, including labour and the National Assembly," she said.
"It is still at the engagement stage. The rates of contribution will certainly go up, but we must ensure that all key stakeholders buy into it first."
The PenCom boss also expressed dissatisfaction with the level of implementation of the Contributory Pension Scheme across the states, noting that only eight states have fully complied with the provisions of the pension law.
She said the slow pace of adoption reflects inadequate political commitment to workers' welfare and urged governors yet to implement the scheme to do so.
"I am not satisfied at all with where we are. If you were to rate it, we still have an F9. We still have only eight states out of 36 states complying," she said.
"There has to be more political will. Governors must prioritise their workers and their future when they retire, not just worry about today. All 36 states should be under the Contributory Pension Scheme."
Addressing concerns by some states over limited funding for pension administration, Oloworaran said PenCom is examining options for creating alternative revenue sources for state pension bureaux.
She, however, explained that while the commission recognises the financial constraints facing many states, any solution must be sustainable and consistent with the objectives of the pension reform programme.
The PenCom chief also condemned the practice by some state governments of deducting pension contributions from workers' salaries without transferring the funds into their Retirement Savings Accounts (RSAs).
She warned that such practices expose contributors to unnecessary risks, particularly when pension funds are retained in state-controlled accounts where they could be diverted for other purposes.
"In my personal opinion, deducting funds from employees and putting them in a state account is something that should never happen," she said.
"Any incoming governor who doesn't understand the original purpose of those funds could divert them elsewhere. That results in pension obligations skyrocketing and leads to a broken system in the future."
Oloworaran said the commission would continue to engage state governments to ensure prompt remittance of pension deductions and full compliance with the Contributory Pension Scheme.
The Pension Reform Act 2014 established the current contributory pension system, replacing the former defined benefits scheme and assigning PenCom responsibility for regulating and supervising Nigeria's pension industry.
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