—Dr Seun Akinde
In a compelling morning session with TNNNEWS Magazine on May 21, 2025, the Director General of the Ondo State Pension Commission, Mr. Babatunde Adefusi Owate, provided deep insights into the workings, achievements, and aspirations of the Commission under the leadership of His Excellency, Governor Lucky Orimisan Aiyedatiwa.
Mr. Owate, a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN) and the Certified Pension Institute of Nigeria, reaffirmed the Commission’s commitment to the welfare of state workers, particularly those under the Contributory Pension Scheme (CPS). According to him, the Commission is a product of the 2004 Pension Reform Act initiated during President Olusegun Obasanjo’s administration to replace the flawed Defined Benefits Scheme. This reform birthed the CPS, mandating joint monthly contributions from both employers and employees.
Owate explained that under the CPS, employers (currently the state government) contribute 10% of an employee’s total emolument, while employees contribute 8%, amounting to an 18% remittance to the Retirement Savings Account (RSA) managed by licensed Pension Fund Administrators (PFAs). These funds are securely held by Pension Fund Custodians (PFCs), who ensure the assets are invested to generate interest, thereby growing the contributor’s pension pot over time.
“For example,” Owate noted, “an individual who has contributed ₦1 million over the years may find their RSA balance increased to ₦3 million or more, depending on market performance and tenure on the scheme.”
He also encouraged employees to take personal responsibility for their retirement through voluntary contributions, an avenue to supplement statutory contributions and secure a more comfortable retirement.
To bridge the knowledge gap among civil servants, Owate emphasized that the Commission is actively engaging in sensitization programs across government ministries, departments, and agencies. While leveraging social media and traditional media, the Commission is also embarking on physical outreach efforts and plans to host a major state-wide pension awareness event later in the year.
“We must shift the mindset,” he said. “Personal finance experts always advise: save first, then spend what is left, not the other way around.”
Mr. Owate highlighted a strong collaborative relationship with the National Pension Commission in Abuja. “PenCom serves as the national regulatory body, and we at the sub-national level mirror their framework,” he said. He cited a recent visit by the PenCom leadership to Akure to meet with Governor Aiyedatiwa, as well as his own participation in the National Consultative Forum on Pensions held in Kaduna in April.
Mr. Owate praised Governor Aiyedatiwa for his consistent support of the Pension Commission’s mandate. “The governor has remained committed to remitting the 10% government contribution for over 10,000 state employees,” he stated. “More so, the government has provided statutory life insurance—300% of annual emolument—for every employee on the scheme.”
This unwavering support recently earned Ondo State national recognition. “Only nine states out of thirty-six are fully compliant with the CPS, and Ondo State is proudly one of them,” Owate revealed. “We’re working hard to become number one, even ahead of Lagos State.”
Reflecting on his time in office, Mr. Owate highlighted a major achievement: automation of the remittance process. “When I assumed office, we initiated end-to-end automation of our pension remittance process. We brought in NIPSS experts from Lagos at no cost to the state. Since November 2023, our pension remittance has been fully digitized—well ahead of the June 2025 deadline set by the National Pension Commission.”
His long-term vision includes full digitization of all Commission operations, ensuring that civil servants can monitor contributions in real-time by simply inputting their names into the system. “We want a Commission where every contributor can access real-time data on their pension growth,” he said. “Ondo State has invested significantly in its workforce. It’s only right that we build a transparent and efficient pension system.”
As Mr. Owate concluded the exclusive session with TNNNEWS as he expressed optimism about the future of pensions in Ondo State and reaffirmed the Commission’s dedication to secure, efficient, and dignified retirements for all state workers. With digital transformation, strategic partnerships, and the committed backing of Governor Aiyedatiwa, Ondo State is well on track to becoming a national benchmark in pension administration.
