The National Pension Commission, PenCom, has urged the Lagos State Governor, Babajide Sanwo-Olu, to extend periodic pension increases—currently enjoyed by retirees under the Defined Benefit Scheme, DBS—to those under the Contributory Pension Scheme, CPS, in order to boost their monthly pensions.
The Director General of PenCom, Omolola Oloworaran, made this request during a recent courtesy visit to Governor Sanwo-Olu at the Lagos State Government House.
According to a statement by PenCom, the visit was to present the report of PenCom’s 2024 routine inspection of the Lagos State Pension Commission, LASPEC, and to thank the governor for confirming his participation as Special Guest at the Pension Industry Leadership Retreat scheduled to commence on 8 May 2025.
Oloworaran explained that currently, only DBS retirees receive pension increases in Lagos State, leaving out their counterparts under the CPS.
She noted the need to prioritise retirees under the CPS, given the contributory nature of the scheme.
During the visit, Oloworaran proposed a partnership with Lagos State to make the Pension Clearance Certificate, PCC, a mandatory requirement for companies seeking Lagos State Government contracts and services, as is currently practised at the federal level.
The director general also urged the governor to consider implementing the Minimum Pension Guarantee, MPG, similar to the provisions at the mandatory CPS level. She informed the governor that the Federal Government had commenced its MPG contributions and incorporated them in the recent approval to issue the N758 billion bond to clear pension liabilities.
In his response, Governor Sanwo-Olu reaffirmed the state’s commitment to pension reforms and praised the collaborative relationship with PenCom under its current leadership.
The governor expressed support for implementing pension increases for CPS retirees.
He, however, called on PenCom to support Lagos State’s developmental initiatives by encouraging pension fund investments in government-issued bonds.
