Monday Okpebholo
Benin City, September 5, 2026 – Edo State Governor Monday Okpebholo has approved the exemption of workers and pensioners recruited before 2017 from the state’s Contributory Pension Scheme (CPS), directing that they be returned to the Defined Benefit Scheme (DBS).
The decision, announced by the Commissioner for Labour and Productivity, Godwin Eshieshie, during a press briefing in Benin City on Saturday, follows sustained outcry from affected pensioners who described the CPS as leaving many with meagre monthly payments after decades of service.
Eshieshie stated that the pension benefits of those exiting the scheme would be computed in line with the existing rules of the Defined Benefit Scheme. He clarified that civil and public servants employed after 2017 would remain under the Contributory Pension Scheme.
“Government has put all necessary machinery in place to effect necessary amendments to give effect to this approval,” the commissioner said. “Governor Okpebholo has said he will not subject Edo State workers to denial of their entitlement. He will follow this exit from CPS assiduously with a draft bill to the Assembly for necessary amendment to the Pension Law.
“Without the amendment, it will not be easy to begin implementation of the exit. Within the next few weeks, we will make sure the amendment bill is sent to the Assembly and as soon as it is passed, full implementation will commence.
“Governor Okpebholo has decided to implement this to save all pensioners receiving pittance. He has sympathy for workers.”
The Edo State Contributory Pension Scheme Law was enacted in 2010, with full implementation beginning in February 2017 following an amendment that year.
The National Pension Commission (PenCom) had in 2023 confirmed that the state government was remitting the required 10 per cent employer and 8 per cent employee contributions, alongside conducting actuarial valuations for accrued rights.
Chairman of the Pension Bureau, Washington Abbe, explained that the delay in the approval was necessary to carefully assess the financial implications of the exit. “We have looked at the possibility of getting the process to run seamlessly. The fear of retiring into poverty is over. The CPS was a death sentence. The PenCom will be notified of the state government’s decision,” he said.
Acting Chairman of the Nigeria Labour Congress (NLC) in Edo State, Comrade Bernard Egwakhide, welcomed the move, describing it as a relief for those previously trapped in an unfavourable system. “We are happy that some persons sentenced to deathtrap have been relieved,” he said.
Pensioners had repeatedly protested the scheme, arguing that many who joined the service under the old Bendel State era — some with over 25 to 30 years of service before 2017 — were retrospectively enrolled and now receive as little as ₦7,000 to ₦10,000 monthly after long careers. They had demanded a return to the Defined Benefit Scheme, which they said better reflected their years of service.
The governor’s approval marks a significant policy shift aimed at addressing the welfare concerns of long-serving public servants and retirees in the state. Full implementation is expected once the necessary legislative amendments are passed by the Edo State House of Assembly.
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