Oyo introduces contributory pension scheme

In a move aimed at strengthening the welfare and financial security of public servants, Oyo State Governor, Seyi Makinde, has approved the immediate implementation of the Contributory Pension Scheme for workers employed into the state’s service from January 1, 2025.

The announcement was made by the Chairman of the Oyo State Pensions Board, Tunji Adekunle, through a statement released by the Commissioner for Information, Dotun Oyelade. According to the Board, the scheme will officially take effect on July 1, 2026, marking a significant step in the state’s pension reform efforts.

Adekunle explained that under the new arrangement, the Oyo State Government will contribute 12 percent of an employee’s pension fund, while workers will contribute 8 percent.

“The scheme will apply to officers employed into the service of Oyo State with effect from January 1, 2025, while the Contributory Pension Scheme will officially commence on July 1, 2026,” he stated.

To reassure workers, the Pensions Board chairman disclosed that the government is committed to the prompt payment of accrued benefits for all employees covered by the scheme. This, he noted, is part of efforts to ensure a smooth transition and build confidence in the pension system.

As part of the implementation process, all Ministries, Departments, and Agencies (MDAs) have been directed to submit comprehensive records of staff recruited since January 2025. The directive was issued through a circular signed by the Permanent Secretary of the Post Service Board, Rev. Adekunle Victor Adesola.

In addition, every MDA is required to appoint a Pension Desk Officer who will serve as a liaison between the agency and the Pensions Board.

Highlighting the importance of the exercise, Adekunle said, “This measure is aimed at facilitating effective coordination, capacity building, accountability and the seamless processing of all matters relating to the Contributory Pension Scheme.”

The Board has directed that all required information and supporting documents be submitted on or before June 22, 2026.

The introduction of the scheme forms part of Governor Makinde’s broader efforts to improve workers’ welfare and align Oyo State with national pension standards. Officials believe the initiative will provide greater retirement security and help public servants plan confidently for their future.