PenCom Calls for Increase in Police Pension Contributions to 20% to Enhance Retirement Security

The National Pension Commission (PenCom) has urged the Federal Government to raise the pension contribution rate for the Nigeria Police Force from the current 10 percent to 20 percent, citing the need to ensure adequate retirement benefits and financial security for officers after years of service.

The call was made by PenCom’s Director-General, Mrs. Aisha Dahir-Umar, during a stakeholders’ engagement in Abuja on Tuesday. She explained that the recommendation was part of a broader proposal to address long-standing concerns over the welfare of police officers, especially given the high-risk nature of their duties.

Under Nigeria’s Contributory Pension Scheme (CPS), employers are required to contribute 10 percent of an employee’s monthly emoluments, while employees contribute 8 percent. However, PenCom has argued that the unique operational hazards, irregular work schedules, and early retirement age associated with policing make it necessary for the Federal Government to increase its share of the contribution for officers.

Dahir-Umar noted that the current arrangement often leaves retired officers with insufficient benefits, especially in cases where promotions are delayed or salaries remain relatively low during service. “The Nigeria Police Force is a critical institution in safeguarding national security, but the retirement benefits for its members do not reflect the sacrifices they make. We are recommending that the Federal Government increase its contribution to at least 20 percent for police personnel to address this gap,” she stated.

She added that a higher employer contribution rate would not only improve the size of retirement savings for officers but also enhance morale and productivity while in active service. According to PenCom, the proposed increase would be structured in a way that aligns with budgetary realities while prioritising the welfare of law enforcement personnel.

The commission’s recommendation comes amid broader national conversations about police reform and improved welfare packages for security agencies. Recent protests by retired officers over unpaid or delayed pension benefits have put pressure on policymakers to re-evaluate existing arrangements under the CPS.

Representatives from the Nigeria Police Force present at the meeting welcomed PenCom’s proposal, describing it as a step in the right direction. Deputy Inspector-General of Police (Finance and Administration), Ibrahim Sani, said that many officers face financial difficulties upon retirement, which could have been avoided with higher contributions during their years of service.

“We have lost many colleagues who could not access adequate healthcare or meet basic needs after retirement. This proposal offers hope for a more dignified post-service life for our personnel,” Sani said.

Security analysts argue that improving pension benefits for the police is crucial for maintaining national stability. They point out that poor retirement packages can indirectly affect performance and integrity in the force, as officers might feel compelled to seek alternative means of financial support while in service.

The Nigerian Labour Congress (NLC) has also expressed support for the proposal, noting that the welfare of security operatives should be treated as a national priority. NLC President, Joe Ajaero, said, “The police are on the frontlines of national security, facing dangers daily. It is only fair that the state ensures they do not retire into poverty.”

However, the proposal also raises questions about funding. Increasing the Federal Government’s contribution to 20 percent would require significant additional allocations in the national budget. Some fiscal policy experts have cautioned that while the measure is laudable, it should be implemented alongside broader reforms to enhance efficiency and reduce wastage in the pension system.

Economic analyst, Dr. Chika Okafor, warned that without a sustainable funding plan, the proposed increase could strain public finances. “The government needs to consider creative funding mechanisms such as special security levies, better pension fund management, and investment diversification to make this feasible,” Okafor suggested.

The Ministry of Finance has acknowledged PenCom’s recommendation and stated that it will be reviewed in line with fiscal priorities. According to ministry officials, discussions will involve the Budget Office of the Federation, the Ministry of Police Affairs, and other key stakeholders to ensure a workable implementation strategy.

For PenCom, the focus remains on building a robust pension system that guarantees retirement dignity for all categories of workers. The commission has been engaging various sectors to ensure compliance with the Pension Reform Act and to explore sector-specific adjustments where necessary.

Dahir-Umar reiterated that the CPS was designed to provide a sustainable, transparent, and fully funded retirement benefit scheme, but noted that certain professions—such as policing—require tailored adjustments due to their nature of service.

If approved, the proposed 20 percent government contribution for the police could serve as a precedent for similar reviews in other uniformed services, including the armed forces, immigration, and customs. However, officials stress that each sector’s case would be assessed individually based on operational demands and fiscal viability.

As deliberations continue, many officers and retirees are hopeful that the proposal will be implemented without delay. For them, it represents not just a policy adjustment, but a tangible recognition of the sacrifices they have made in service to the nation.

The Federal Government is expected to make a formal pronouncement on the proposal in the coming months, as part of broader reforms aimed at improving the welfare of security personnel and strengthening Nigeria’s pension architecture.