The National Pension Commission (PenCom) has announced the recovery of N1.58 billion from employers who defaulted on their pension obligations, following intensified enforcement efforts.

The development was disclosed by the Director General of PenCom, Ms. Omolola Oloworaran, during the First Run 2025 Consultative Forum held in Kano for representatives of the States and the Federal Capital Territory (FCT), according to the News Agency of Nigeria (NAN).

Speaking at the high-level engagement, Oloworaran said the recoveries reflect PenCom’s commitment to protecting workers’ retirement savings and strengthening compliance within the pension sector.

“Remittances by states have continued to improve, reflecting a growing commitment to the CPS among subnational governments,” she stated.

As of February 2025, total pension assets under management had climbed to over N23 trillion, a milestone Oloworaran described as evidence of increasing confidence in Nigeria’s pension system.

However, she acknowledged that only 25 states and the FCT have enacted legislation to implement the Contributory Pension Scheme (CPS), and only eight states have gone on to fully implement the scheme.

“Six states are currently operating hybrid pension schemes, while another six states have CPS bills at advanced legislative stages,” she explained, citing progress in Katsina, Yobe, Bauchi, and Abia.

“However, full implementation of the CPS is currently limited to eight states,” she added.

In response to the uneven adoption across the country, PenCom has introduced a flexible adoption framework to support gradual implementation.

This model encourages states to begin with new employees or those with less than 10 years of service, providing a financially manageable entry point into the CPS.

Oloworaran emphasized that PenCom is also offering technical support to help states develop sustainable strategies for settling legacy liabilities and onboarding their entire workforce.

“With sustained dialogue, technical collaboration, and strong political will, we are confident of reaching this goal,” she said.

She described the forum as more than a statutory gathering, calling it “a call to collective action” that invites all stakeholders to innovate, collaborate, and recommit to building an inclusive and secure pension future for all Nigerians.

During the event, Kano State’s pension reform efforts were spotlighted.

Alhaji Abdullahi Musa, Head of Service of Kano State, reiterated the government’s resolve to overhaul its pension system.

He applauded PenCom’s leadership and advocacy for international best practices.

Musa shared that the administration of Governor Abba Kabir had so far paid out N16 billion in outstanding pension entitlements, representing about 40% of the pension debt inherited from previous administrations.

He further noted that Kano’s hybrid model, which blends features of the old defined benefit system with the CPS, has helped the state begin a steady and structured transition.