•Crowns Lagos model state for pension reform
From Adanna Nnamani, Abuja
The National Pension Commission (PenCom) has called on Lagos State Governor, Babajide Sanwo-Olu, to implement periodic pension increases for retirees under the Contributory Pension Scheme (CPS), aligning them with their counterparts in the Defined Benefit Scheme (DBS).
PenCom’s Director General, Ms. Omolola Oloworaran, made the plea during a courtesy visit to the Governor at the Lagos State Government House recently. The visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank the Governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat starting 8 May 2025.
Oloworaran urged the state to prioritise CPS retirees given the contributory nature of the scheme, saying they too deserve a dignified retirement.
PenCom crowned Lagos State as the leading model for CPS in the country, commending its consistency in remitting employee contributions, clearing pension backlogs, providing group life insurance, and leveraging ICT tools in pension administration.
The DG used the occasion to present the findings of PenCom’s 2024 routine inspection of the Lagos State Pension Commission (LASPEC) and to thank Governor Sanwo-Olu for accepting to serve as Special Guest at the Pension Industry Leadership Retreat scheduled for May 8, 2025.
While praising Lagos’ progress, Oloworaran proposed stronger collaboration, including mandating the Pension Clearance Certificate (PCC) for state contracts, similar to federal government practice. She also recommended transferring unremitted contributions from escrow accounts in commercial banks to the Transitional Contribution Fund (TCF) managed by Pension Fund Administrators (PFAs), to improve returns.
Additionally, she advised Lagos to adopt an Irrevocable Standing Payment Order (ISPO) on FAAC allocations to ensure timely pension contributions, and to implement the Minimum Pension Guarantee (MPG), following the federal government’s lead in including it in the recent N758 billion pension bond approval.
Governor Sanwo-Olu, in response, expressed support for pension increases for CPS retirees and reaffirmed the state’s commitment to pension reforms. He emphasised the importance of workers’ welfare and commended PenCom’s collaborative approach. However, he expressed reservations about the need for an ISPO at this time.
The Governor also urged PenCom to facilitate pension fund investments in Lagos-issued bonds to support infrastructure and development projects.