James Emejo in Abuja
Director General, National Pension Commission (PenCom), Ms Omolola Oloworaran, yesterday, disclosed that the federal government had approved the issuance of N758 billion Federal Government of Nigeria (FGN) Bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
Oloworaran said the landmark bond will resolve all accumulated pension liabilities to date.
Speaking at a media briefing on the sidelines of the Quarterly PenCom/Operators Consultative Forum in Abuja, Oloworaran hailed the decisive intervention by President Bola Tinubu. She said it signalled a new dawn for pensioners, ensuring that the CPS fulfils its core mandate of providing timely and adequate retirement benefits.
She said the sum of N253 billion had been allocated to settling outstanding entitlements under the Accrued Pension Rights for retirees of Federal Government Treasury-funded Ministries, Departments, and Agencies (MDAs), to address the delays caused by previous funding shortfalls.
The PenCom director-general stated that going forward, accrued pension rights will be included in the monthly personnel cost general warrant, to ensure automatic and timely payments.
The bond will also clear pension increases since 2007 amounting to N388 billion that had remained unpaid for nearly two decades.
Oloworaran said, “This long-overdue entitlement, benefiting over 250,000 retirees, reflects the administration’s commitment to ensuring pensions remain fair and responsive to economic realities.”
She said for the first time, the federal government will be contributing N107 billion to the Pension Protection Fund (PPF), to ensure that pensioners, particularly, low-income earners, receive a living wage in retirement.
She said, “This is a major step towards strengthening financial security for all retirees under the CPS.”
The sum of N11 billion was allocated to university professors’ pension shortfall, fully implementing the provision allowing eligible university professors to retire on their full salary, therefore, addressing the funding gaps that previously hindered its execution.
Oloworaran said, “With this bold step, President Tinubu has set a new standard for pension administration in Nigeria, effectively resetting the CPS on the path to sustainability.
“However, achieving full implementation requires strategic collaboration. PenCom will continue working closely with all stakeholders to ensure the seamless issuance of the bond and the timely disbursement of pension payments.
“Our priority remains efficiency, transparency, and accountability in the administration of retirement benefits.”
She pointed out that the resolution of pension liabilities served to restore confidence in the CPS and position the pension industry for long-term growth.
The PenCom director-general added that beyond immediate payments to retirees, the move will further stimulate the economy, deepen the capital market, and enhance overall financial stability.
She said, “With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimising investment returns. A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can serve securely for their future.”
Oloworaran said, “This achievement would not have been possible without the visionary leadership of President Bola Ahmed Tinubu, whose unwavering commitment to pension reform has made this historic milestone a reality.”
She also commended Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, for his support in bringing the initiative to fruition.
Oloworaran said, “Today, we stand at the threshold of a transformed pension industry, one that truly serves its purpose, guarantees dignity in retirement, and drives economic progress.”
It was disclosed that 370,568 retirees had accessed N1.18 trillion in lump sums as of January.
