June 25 (THEWILL) — The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has called on state governments and private sector employers across Nigeria to adopt retirement benefit arrangements similar to the Federal Government’s newly approved Exit Benefits Scheme, describing the initiative as a landmark intervention capable of transforming retirement security and workers’ welfare nationwide.
Oloworaran made the call in an article titled “President Tinubu’s Exit Benefits Scheme: A New Social Contract for Nigerian Workers,” in which she praised the administration of President Bola Tinubu for introducing what she described as one of the most significant social protection measures in recent years.
According to her, the newly approved scheme ensures that retiring federal civil servants receive an additional retirement benefit equivalent to 100 per cent of their total annual emoluments, alongside their accrued pension savings and other entitlements under the Contributory Pension Scheme (CPS).
She noted that the scheme, which took effect from January 1, 2026, applies to officers in treasury-funded Ministries, Departments and Agencies (MDAs) who have completed at least 10 years of service.
The PenCom boss said the initiative addresses a longstanding concern surrounding retirement welfare and reinforces the principle that workers who dedicate decades of their lives to public service deserve financial security and dignity after retirement.
“Retirement should arrive as a season of dignity, security and peace of mind, not as a descent into uncertainty”, Oloworaran stated, arguing that societies are ultimately judged by how they treat citizens who have spent their productive years in service to the nation.
She described the policy as a landmark intervention that strengthens retirement security, improves retirement outcomes and advances the core objective of pension administration by ensuring that workers can retire with confidence and financial stability.
Oloworaran also sought to dispel what she called a persistent misconception since the introduction of the CPS in 2004—that employers are prohibited from providing additional retirement benefits beyond statutory pension contributions.
According to her, the Pension Reform Act merely established a minimum retirement savings framework and expressly allows employers to establish supplementary retirement benefit schemes for their workforce.
“The CPS was never designed to prevent employers from providing additional retirement benefits to their employees. Rather, it established a sustainable minimum framework upon which employers could build more generous retirement arrangements”, she said.
She added that the Federal Government’s decision demonstrates how existing provisions within the pension law can be leveraged to strengthen retirement welfare and improve post-service outcomes for workers.
To guarantee transparency and sustainability, Oloworaran disclosed that a dedicated Exit Benefits Scheme Account is being maintained by the Central Bank of Nigeria and ring-fenced exclusively for the programme.
She explained that PenCom would serve as the sole custodian of the funds, while the Office of the Accountant-General of the Federation would transfer approved allocations into the account for onward disbursement through retirees’ Pension Fund Administrators (PFAs).
Under the arrangement, PFAs are expected to pay beneficiaries within ten working days of receiving the funds.
According to the PenCom DG, the structure is designed to insulate the scheme from budgetary uncertainties and ensure retirees receive their benefits promptly and transparently.
She argued that the significance of the initiative extends beyond the Federal Civil Service, saying it establishes an important national precedent and sends a clear signal that retirement protection should not be limited to monthly pension payments alone.
For this reason, she urged state governments to carefully study the scheme and consider adopting similar programmes for their workers.
“Many states have made remarkable progress in implementing the Contributory Pension Scheme. But retirement security is not merely about compliance with minimum statutory requirements. It is about creating outcomes that genuinely improve the quality of life of retirees”, she said.
Oloworaran stressed that workers retiring in states across the federation deserve the same opportunity to transition into retirement with dignity, financial security and peace of mind as their counterparts in the federal service.
She equally challenged private sector employers to see enhanced retirement packages as strategic investments in human capital rather than additional costs.
According to her, global experience has shown that organisations that prioritise post-retirement welfare are better positioned to attract and retain talent, preserve institutional knowledge and build stronger employee loyalty.
“Workers who know that their employers genuinely care about their future tend to be more productive, more committed and more invested in the success of the enterprise”, she noted.
The PenCom chief further linked the Exit Benefits Scheme to a broader series of reforms introduced by the Tinubu administration to improve pension administration and strengthen the welfare of retirees.
She cited the approval and disbursement of N758 billion to clear outstanding pension liabilities dating back several years, the implementation of Pension Boost 1.0, which increased aggregate monthly pension payments under the CPS by over 40 per cent, and the restoration of zero waiting time for payment of accrued pension rights.
According to her, the measures collectively demonstrate the administration’s commitment to ensuring that economic reforms translate into tangible improvements in the lives of workers and retirees.
Oloworaran argued that the Exit Benefits Scheme should be viewed not merely as a pension policy but as a statement of national values and a reflection of the government’s obligation to honour citizens who have spent decades contributing to national development.
She maintained that the initiative has the potential to redefine retirement welfare in Nigeria and strengthen confidence in the country’s social protection system.
“The Federal Government has led. State governments must follow. The private sector must seize the opportunity. Together, we must keep building a Nigeria where every worker can look toward retirement not with fear, but with hope”, she said.
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