In a bold move to address long-standing grievances over police pensions, the National Pension Commission (PenCom) and the Nigeria Police Force (NPF) have announced a strategic partnership aimed at reforming officers’ retirement benefits under the Contributory Pension Scheme (CPS).
The development was confirmed in a statement issued by PenCom management on Thursday in Abuja, following a high-level meeting between PenCom’s Director-General, Omolola Oloworaran, and the Inspector-General of Police, Kayode Egbetokun.
Reform Agenda Unveiled
Oloworaran stressed the urgency of stronger collaboration between both institutions, saying the CPS—introduced to replace the failed Defined Benefits Scheme (DBS)—was designed to guarantee sustainability and transparency. The old DBS, she noted, was grossly underfunded, opaque, and left thousands of retirees in severe hardship.
While acknowledging existing flaws in the CPS, the DG unveiled a raft of proposed reforms:
- Introduction of a Health Insurance Scheme for retirees.
- Raising pension payouts to 75% of officers’ final salary.
- Expansion of the Retirement Resettlement Fund.
- Restructuring of police pensions for more equity.
Oloworaran dismissed growing calls for the police to exit the CPS, describing such demands as “unnecessary and counterproductive.”
Push for Higher Government Commitment
The PenCom boss also urged the Federal Government to double its contribution to police pensions from 10% to 20%, a move she argued would significantly boost officers’ retirement savings.
In addition, she revealed that PenCom, in collaboration with the Office of the Head of the Civil Service of the Federation, is finalizing a new Gratuity Scheme set to take off in 2026. The scheme would guarantee treasury-funded federal workers one year’s total emolument as gratuity upon retirement.
Police Endorse Partnership
Egbetokun, responding during the meeting, reaffirmed the Police Force’s commitment to constructive engagement with PenCom, insisting that the welfare of officers must remain a priority if public confidence in the NPF is to be sustained. He commended PenCom’s reform drive and assured that the police leadership would work hand-in-hand with the commission to resolve pension bottlenecks.
Why It Matters
The move marks a critical turning point in Nigeria’s pension reform history. For years, police officers—who often retire after decades of frontline service—have decried inadequate pension benefits and compared their plight unfavorably with that of counterparts in other security agencies.
By aligning with PenCom, the NPF is signaling a willingness to address systemic pension injustices while avoiding a messy withdrawal from the CPS that could destabilize the broader pension architecture.
