Has the National Assembly NASS closed the file for understanding of the workings of the contributory pension scheme, inadvertently making it an uphill task to have clear and unambiguous understanding of the doings of the Pension Reform Act 2014.
The reoccurring show of admission of minimal reliance on PRA as the sure platform that guarantees adequate pension benefits for retirees by the Lawmakers, lends credence to the fact that the base Pension Reform Act 2004, an Executive bill of President Olusegun Obasanjo administration, is still a stranger to the NASS more two decades since its operations began. Stakeholders in the industry hold that the legislative branch has not yet placed the Act in its observatory to have lucid vision of the CPS.
It is this stark stretch of insufficient grasp of what the PRA has set to do from inception that obstructs the NASS from portrait view of the Act that saved pension administration in Nigeria from the doomed and grossly underfunded defined benefit scheme. This current state of affairs fueled its decision to opt out of the CPS in May 2023 before the end of the Muhammadu Buhari administration.
The abject misunderstanding of the doings and workings of the CPS by the NASS has led them to label the PFAs and PFCs as “rookies” several years ago. As this disconnect continues the trending pattern of parallel journey on the pension mission continues.
Two years down the line, May 2025, the staff of the NASS are hungry to return to CPS because of inherent inadequacies of the Defined Benefit Scheme that they were shoved back to . The question that follows after is, whos’ interest does the exit serve, the staff that have decades of service to government and therefore, worthy of an adequate pension benefit that CPS offers or, the interest of a four year term lawmakers who do not have a guarantee of reelection. Its reawakening to accept that CPS was structured for fraud proof, and none has been reported since operation started in January 2005 with the Pension Fund Administrators PFAs and Pension Fund Custodians acting independently do not have a slim chance to meet at a confluence for fraud. Despite certain operation shortcomings, the CPS has remained the bastion of outstanding pension industry.
Unswayed by the opposition of its own staff, who now want a return to CPS instead of the National Assembly Service Pension Board Act that do not match the pension standard set by the CPS; the National lawmakers have moved to exfoliate the doings of the PRA by passing a bill to remove the Police from the scheme. The bill up and until now is in limbo and if the opposing storm remains in force it will go the way of bills that reached the door mat of Mr President but was not cleared to pass for ultimate accent. The only light at the end of the tunnel might be two thirds majority that would by-pass accent denial if that stage is reached and that would be accepting a lower version of CPS, which for now is not in sight.
While the bill is remanded in the cache of awaiting President accent, retired police officers under the aegis of the Police Retired Officers Forum of Nigeria (PROF), proceeded to protest the delay of President Bola Ahmed Tinubu accent by blocking a gate of Aso Rock on Monday April, 20 2025, demanding President accent o the Police Exit Bill passed by the NASS on 4 December 2025 to remove them from the CPS.
The CPS opposing branch of the Police retired officers admit that resistance to proposed changes in the contributory pension scheme is driving by interest among key stakeholders, National Coordinator retired Chief Superintendent of Police, Munir LawalZaria admitted it.
The National Pension Commission is not ignoring the amalgamated build up to exit the Police from the CPS. The first line charge it adopted was to open the channel to engage the National lawmakers with the hope of making them understand how the CPS works and also make it clear that the Defined Benefit Scheme that is lurking around to step in if space is granted does not match the offerings the PRA guarantees.
The engagement option advanced in December 2025 by the Director General National Pension Commission, Ms Omolola Bridget Oloworaran is displaying scant yield by the lawmakers who instead, have crossed to the side of the DBS. Their reason is not far fetched, in May 2023, they exit the staff of the NASS from the CPS.
The engagement strides of PenCom with the NASS might have suffered missteps within the space of engagement. The delay in the accent might not be unconnected with the behind the scene engagement of PenCom to knock down and out completely the bill from the accent horizon. Withdrawing pension funds is a painstaking financial undertaking that takes a couple of years to clear out and clean up with its attendant consequences on the on the investment space where these funds were deployed.
PenCom severally has pointed to the salary structure of the Police as the major factor for the seeming disregard of current pension benefits for Police retirees. To solve this, PenCom DG said it is engaging the Police to review their salary that would translate to much higher level of contribution. There is also the option PenCom said of impressing on Federal government for financial outlay for Police that would ultimately enhance retirement benefits.
The administration of the immediate past Inspector General of Police Kayode Egbetokun, supported the submission of the pension regulator and also filed behind enhanced emoluments that would increase the traffic of funds contributed by officers and men and the Police Force.
PenCom hold that what should be on the table is enhanced emoluments for the Police which would rub off on the two layers of contribution such that when the police retiree benefits would be higher and better. Exiting CPS according to the pension regulator only provides a change of platform for end-of-service retirement benefits but does not solve the lingering challenges but exacerbates shortcomings at retirement.
