The story of Emeka, a retiree who discovered that nearly three decades of work had produced a pension balance of just over N4 million, may be fictional. The reality it reflects, however, is all too familiar. Across Nigeria, many workers approach retirement believing the Contributory Pension Scheme (CPS) will guarantee financial security, only to discover that their savings cannot sustain a dignified life after work.
This should concern every Nigerian, whether in the public or private sector. It goes beyond personal financial planning to raise questions about wages, inflation, pension administration, state compliance and the future of aging in the country.
When Nigeria introduced the CPS in 2004, it marked a significant reform. The old defined benefit scheme had become unsustainable, leaving pensioners dependent on government budgets and vulnerable to long delays. The CPS shifted retirement savings into individual retirement savings accounts managed by pension fund administrators. More than two decades later, the industry has accumulated trillions of naira in assets and millions of contributors.
Indeed, those impressive figures conceal a difficult reality. Many Nigerians contribute too little, earn too little or do not contribute at all. For many, retirement is becoming a transition from employment into financial hardship.
