The National Pension Commission (PenCom) has disclosed plans to increase the statutory pension contribution rate for employers as part of the ongoing review of the Pension Reform Act (PRA) 2014.
Speaking at the 2026 Pension Consultative Forum for states, the Federal Capital Territory (FCT) and licensed pension fund operators in Lagos, PenCom Director-General Omolola Oloworaran said the commission is engaging organised labour and the National Assembly on proposed amendments aimed at strengthening retirement security through higher pension contributions.
Under the current pension framework, employers contribute a minimum of 10% of an employee’s monthly emoluments, while employees contribute 8%, bringing the total mandatory contribution to 18%. Oloworaran noted that although the contribution rates are expected to increase, discussions are still at the consultation stage and stakeholder support remains essential before any changes are implemented.
The PenCom boss also expressed concern over the slow adoption of the Contributory Pension Scheme (CPS) by state governments, revealing that only eight of Nigeria’s 36 states are currently compliant. Describing the commission’s progress as an “F9,” she urged state governors to demonstrate stronger political commitment to implementing the scheme.