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Workers’ Resists Contributory Pension Scheme (CPS) in 25 States

Several attempts by numerous state governors to adopt the Contributory Pension Scheme (CPS) have been forcefully resisted by civil servants, stalling its adoption and passage into law in 25 Nigerian states.

The CPS, as suggested by the Pension Reform Act (PRA) 2004, demands that the employer and employees save into a Retirement Saving Account (RSA) to ensure the long-term sustainability of the pensions. However, six of them Akwa Ibom, Borno, Kwara, Plateau, Cross River, and Yobe have yet to present the CPS bill, while another 19 have yet to implement it despite having passed the legislation.

Only Lagos, Kaduna, Ekiti, Edo, Ondo, Delta, Benue, Anambra, Jigawa, and the Federal Capital Territory (FCT) are fully compliant, says the National Pension Commission (PENCOM).

Those states that passed the law but did not implement it are: Abia, Adamawa, Bauchi, Bayelsa, Ebonyi, Enugu, Gombe, Imo, Kano, Katsina, Kebbi, Kogi, Nasarawa, Niger, Ogun, Oyo, Rivers, Sokoto, Taraba, and Zamfara.

In Kogi State, for example, labour unions stopped the implementation of the scheme in 2021, complaining about outstanding entitlements of civil servants and insufficient consultation. The Nigeria Labour Congress (NLC) also discouraged adoption, expressing concerns about the scheme’s performance across other states.

Kwara State also has not implemented CPS. The chairman of NLC, Comrade Murtala Olayinka, urged the government to act fast, even as reports have emerged of public servants objecting to enrollment in the scheme.

There is a pending pension bill in the House of Assembly in Plateau State. Civil servants and union leaders remain skeptical, arguing that even federal workers under the CPS are not faring well. The bill got stuck in the 9th Assembly, and current officials report that nothing has changed.

Cross River State also saw fierce resistance from labour. The TUC chairman, Comrade Monday Ogbodum, revealed that organised labour in the past held up Assembly to prevent the bill from passing through. Despite an undercover midnight passing by legislators, implementation is also at a deadlock due to protest and skepticism.

The governor’s spokesman, Nsa Gill, said that while Governor Bassey Otu is keen to operate the scheme, he shelved progress in deference to public outcry and resistance from labour. He added that the scheme may proceed once issues of workers are addressed accordingly.

In Bauchi State, the state executive secretary of the State Pension Commission, Ibrahim Inuwa, confirmed that despite the enactment of the CPS law in 2014, it is yet to be implemented.

Despite its long-term payoffs, CPS is still full of hiccups across much of Nigeria in the form of mistrust, poor sensitsation, and lingering heritage issues in the public domain.

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