The Federal Government of Nigeria has approved a ₦758 billion bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme, marking a significant milestone in the country’s pension administration.
The Director General of the National Pension Commission, Omolola Oloworararan, referred to the approval as a “new dawn for pensioners” at a press conference in Abuja after the Quarterly PenCom/Operators Consultative Forum.
This will guarantee that retirees receive their benefits in a timely and sufficient manner.
“This decisive intervention by His Excellency, President Bola Ahmed Tinubu, GCFR, signals a new dawn for pensioners, ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits,” Oloworararan stated.
According to the PenCom DG, the bond will resolve all accumulated pension liabilities, covering, Accrued Pension of which ₦253 billion has been allocated to settle outstanding entitlements for retirees from Federal Government Treasury-funded Ministries, Departments, and Agencies.
To prevent future delays, accrued pension rights will now be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.
A total of ₦388billion will be used to eliminate an increase in unpaid pensions the long-overdue entitlement benefits more than 250,000 pensioners, highlights the government’s commitment to fairness and response pension adjustments.
For the first time, the federal government will contribute ₦107 billion to PPF.
It aims to ensure the financial security of pensioners, especially those with low incomes.
“This is a major step towards strengthening financial security for all retirees under the CPS,” Oloworararan emphasized.
Lastly, ₦11 billion has been earmarked to fully implement provisions that allow eligible university professors to retire on their full salary, addressing previous funding gaps.
With this financial commitment, Oloworararan said President Tinubu has “set a new standard for pension administration in Nigeria, effectively resetting the CPS on the path to sustainability.”
However, she noted that full implementation requires collaboration between PenCom and other stakeholders.
“Our priority remains efficiency, transparency, and accountability in the administration of retirement benefits,” she made clear.
Aside from resolving existing liabilities, the bond is projected to stimulate economic growth, deepen the capital market, and improve financial stability.
The PenCom boss also announced plans to expand the Micro Pension Plan, which will provide retirement security for Nigerians in the informal sector.
Oloworararan credited the success of the initiative to President Tinubu’s leadership and praised the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for his support.
“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,” she concluded.
