Reps End Police Pension Frustration, Approve Creation of Independent Pension Board
The House of Representatives has passed a bill seeking to remove the Nigeria Police Force from the Contributory Pension Scheme (CPS) under the National Pension Commission (PenCom) and establish a separate Nigeria Police Force Pension Board.
The bill, titled “A Bill for an Act to Establish the Nigeria Police Force Pension Board and to Exempt the Force from the Application of the Contributory Pension Scheme under the Pension Reform Act, 2014, and for Related Matters,” scaled third reading on Wednesday, October 23, 2025, after consideration by the Committee of the Whole.
When signed into law, the new legislation will ensure that police officers’ pensions and gratuities are managed independently, similar to the pension arrangements of the military and other security agencies.
Lawmakers who supported the bill said the move was long overdue, describing it as a major step toward improving the welfare of police personnel who risk their lives daily to maintain internal security. They noted that under the existing contributory scheme, many retired officers have faced hardship due to delayed or inadequate payments.
The proposed Police Pension Board will be responsible for administering pensions, gratuities, and other retirement benefits for serving and retired police officers. It is also expected to guarantee a minimum of 85 percent of total emoluments as retirement benefits for police retirees.
However, some pension operators and financial experts have raised concerns about the fiscal impact of the proposed exemption. The Pension Fund Operators Association of Nigeria (PenOp) recently warned that removing the police from the contributory scheme could cost the government as much as ₦3.5 trillion annually and might undermine the sustainability of Nigeria’s pension system.
Despite the concerns, many stakeholders within the police have welcomed the move, describing it as a victory for fairness and recognition of the peculiar risks associated with policing duties.
The bill will now be transmitted to the Senate for concurrence before being sent to President Bola Ahmed Tinubu for assent.
