The National Pension Commission (PenCom) has urged Lagos State Governor Babajide Sanwo-Olu to extend pension increases currently enjoyed by retirees under the Defined Benefit Scheme (DBS) to those under the Contributory Pension Scheme (CPS), in a bid to improve the livelihoods of all categories of pensioners.
PenCom Director General, Ms. Omolola Oloworaran, made the appeal during a courtesy visit to the Governor at the Lagos State Government House on May 7, 2025. The visit also served to present the 2024 inspection report of the Lagos State Pension Commission (LASPEC) and confirm Sanwo-Olu’s attendance as Special Guest at the Pension Industry Leadership Retreat holding on May 8.
While commending Lagos as a leading example in the implementation of the CPS, Oloworaran noted that only DBS retirees currently benefit from periodic pension increases. She urged the Governor to prioritise CPS retirees, stressing that the contributory nature of the scheme makes it imperative to provide regular adjustments to their monthly payouts.
The PenCom DG lauded Lagos for consistent remittances of pension contributions, clearing of outstanding accrued rights, deployment of modern ICT tools, and provision of Group Life Insurance cover for public service workers. She, however, recommended additional reforms, including making Pension Clearance Certificates compulsory for firms seeking state contracts and moving unremitted contributions from escrow accounts in commercial banks to Transitional Contribution Fund accounts managed by Pension Fund Administrators.
Oloworaran also proposed an Irrevocable Standing Payment Order (ISPO) for pension deductions directly from FAAC allocations to eliminate administrative delays. She called for the implementation of the Minimum Pension Guarantee (MPG), revealing that the Federal Government had already commenced its own contributions and included provisions for the MPG in a recent N758 billion bond issuance to clear pension liabilities.
Commending the State’s N600 million bailout for Lagos State University of Education (LASUED) retirees, she requested additional support to clear outstanding benefits from 2023 and 2024.
In response, Governor Sanwo-Olu reaffirmed Lagos State’s commitment to pension reform, expressed support for increasing CPS retirees’ pensions, and praised PenCom’s leadership. While welcoming the recommendations, he noted that an ISPO may not be necessary at this time. He also encouraged PenCom to channel pension fund investments toward Lagos State’s infrastructure and development projects.
