PenCom Proposes State Pension Reforms as Ondo Looks to Leverage Pension Funds for Infrastructure

PenCom DG Ms. Omolara Oloworaran and His Excellency the Governor of Ondo State Dr. Lucky Aiyedatiwa, CON

Governor Lucky Aiyedatiwa of Ondo State has revealed plans to explore innovative ways to leverage pension funds for driving infrastructural development within the state. This announcement came on Tuesday, 15 April 2025, during a meeting with a delegation from the National Pension Commission (PenCom), led by Director-General Ms. Omolola Oloworaran, in Akure.

The PenCom delegation visited to discuss crucial pension reforms aimed at enhancing retirees’ welfare and ensuring full compliance with the Contributory Pension Scheme (CPS) across Ondo State. During the visit, Governor Aiyedatiwa emphasized the vital role pension funds play in the economic development of the state. He commended PenCom for its proactive stance and reassured the delegation of his administration’s unwavering commitment to the full implementation of the CPS.

One of the key highlights of the visit was the proposal by Ms. Oloworaran for important amendments to the Ondo State Pension Law. Among the proposed changes was the introduction of a Minimum Pension Guarantee (MPG) to support indigent contributors, as well as an Irrevocable Standing Payment Order (ISPO) to ensure consistent and uninterrupted remittances by future administrations. These reforms are designed to safeguard the pension system and protect the rights of pensioners.

Additionally, the PenCom DG advocated for the introduction of a Pension Compliance Certificate (PCC), which would be a mandatory requirement for business licensing, registration renewals, and contract awards within the state. This measure, she explained, would serve to enhance accountability and ensure that employers meet their pension remittance obligations.

Addressing concerns from PenCom’s recent inspection of the Ondo State Pension Commission (OSPEC), which resulted in a compliance score of 72.44%, Ms. Oloworaran urged the state to promptly resolve identified issues to improve its compliance rating. Governor Aiyedatiwa, acknowledging the concerns, expressed his commitment to addressing most of the issues raised before the next inspection and working towards achieving a 95% pension compliance score.

Reflecting on the broader economic implications, Governor Aiyedatiwa also outlined the state’s plans to tap into pension funds for infrastructural development. This vision to channel pension assets into long-term projects such as roads, housing, and public services aligns with the state’s drive for sustainable economic growth and development.

Through these comprehensive measures and reforms, Ondo State is positioning itself not only to improve pension system compliance but also to unlock new avenues for economic growth by harnessing pension funds as a tool for infrastructure development. The Governor’s proactive engagement with PenCom signals a forward-looking strategy that balances fiscal responsibility with long-term development goals.

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