PENSION word on block concept.
The approval of bond issuance of N758 billion to clear pension liabilities by President Bola Tinubu would clear long-standing pension obligations including pension increases owed since 2007.
The payment of the backlog would deepen confidence in the pension system and bring relief to vulnerable pensioners.
Director-General, National Pension Commission (PenCom) Ms. Omolola Oloworaran said this at the workshop on the Working of the Contributory Pension Scheme CPS for employers and Pension desk officers in Abuja.
She explained that the idea behind the workshop was to deepen trust and ensure that every federal employee and pensioner fully understands the CPS and can access its benefits without delay.
Oloworaran, who was represented by Mr. Usman Musa, Director, Contribution and Bond Redemption Department noted that more than 10 million Nigerians from public service employees to private sector workers, and even artisans and the self-employed under the Personal Pension Plan, are covered under the CPS.
She said: “Pension assets have grown to over N25 trillion, fueling national development through strategic investments, while also securing regular monthly pensions for over 552,000 retirees and lump sum benefits for an additional 291,735 retirees. In total, more than 844,000 retirees across both public and private sectors now enjoy retirement benefits that are steady, reliable, and transparent.
“In line with our mandate to protect contributors and guarantee dignity in retirement, PenCom has rolled out key interventions that are changing lives. They are, Pension Boost 1.0, enhancing pensions for over 241,000 retirees, representing 80 per cent of those under Programmed Withdrawal. Monthly pensions rose from N12.157 billion to N14.837 billion, effective June 2025.
“Presently, it is zero Waiting time for Pension Payments Since July 2025, no retiree waits to access their pensions again , payments are now immediate aligning with monthly salary releases from the federal ministry of Finance, there is the
proposal reintroduction of gratuity for civil servants working with the Office of the Head of the Civil Service, a framework has been developed to restore gratuity benefits for federal workers under CPS, in line with Section 4(4) of the PRA 2014”.
Oloworaran added that Stronger Prudential Standards for Operators, Minimum capital and governance requirements for Pension Fund Administrators (PFAs) and Custodians have been revised to ensure greater financial stability, service delivery, and technological resilience, with issuance of Five New Regulations under the Pension Revolution 2.0 initiative, including:
Whistle Blowing Guidelines for Pension Fund Assets, Revised Regulation on Investment of Pension Fund Assets and a
Framework for Accredited Pension Agents under the Personal Pension Plan.
The introduction of Free Health Insurance for Retirees beginning later this year and starting with pensioners in lower-income categories, ensuring dignity and security beyond financial pensions, while the CPS has achieved much, challenges remain. Coverage expansion is still limited, with several States and employers yet to fully comply. Public skepticism, often shaped by painful experiences of the past, continues to undermine trust in the system, she said.
