The assurances of the contributory pension policy (CPP) have dwindled in recent times, due to the reported incidence of embezzlement and misappropriation of the old pension fund. The Nigerian Union of Contributory Pensioners (NUCP) stated that the new pension scheme has compounded, rather than alleviated problems faced by retirees under the contributory pension scheme. It is in the light of the above, that this study examined the implementation, prospects, and challenges of the contributory pension policy of Nigeria using the secondary source of data collection such as the consultation of text books, academic journals, government documents and circulars, internet sources, newspapers, and so on. The textual analysis was applied in the analysis of the obtained secondary data. The periodic scope of the study is from 2019 to 2024. The findings from the study reveals several prospects and challenges of the contributory pension policy (CPP) of Nigeria enacted in 2004, and later reformed in 2014. The study further revealed that despite the observed challenges inherent in the pension policy administration, the new pension policy is better and preferable to the old defined benefit (DB) scheme. The study further observed that at the moment, the CPP in Nigeria is performing below expectation as it has not proved to be different from the defunct DB scheme, since many retirees are not receiving their pension entitlements as and when due. It is on this note that the study advanced several recommendations aimed at repositioning the new CPP in order to enhance it optimal performance and to ensure a more effective and guaranteed pension plan in Nigeria. Several recommendations were suggested in the article, such as the amendment of the provision in PRA 2014, in Part IV, Section 2, Sub-section 3, and Paragraph (a) and (b), which states that employers must make full payment of all monthly pension contributions of employees before the payment of employees’ pension entitlements at retirement; also, the minimum of 5 per cent of total wage bill for settlement of accrued pension rights (pension benefits accrued to an employee in the old pension scheme) should be reviewed upward to a minimum of 15 per cent; the activities of the National Pension Commission (PenCom) are too centralized. There is the urgent need for decentralization of its offices and functions to ensure flexibility and swift response to issues assigned to it; and so on.