The National Pension Commission has unveiled plans to ensure a living wage for retired low-income earners.
This follows the Federal Government’s approval of a ₦758 billion bond aimed at clearing all outstanding liabilities under the Contributory Pension Scheme.
This was disclosed by the
Director-General of PenCom, Omolola Oloworaran, at a press conference in Abuja on Thursday after the Quarterly PenCom/Operators Consultative Forum.
Oloworaran said, “A defining milestone in our nation’s pension administration has been achieved through the approval of a N758bn Federal Government of Nigeria Bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme.”
She called the ₦758 billion bond a significant intervention by President Bola Tinubu.
She stated that it seeks to rebuild trust in the pension system and guarantee prompt payment of retirees’ entitlements.
The PenCom boss stated that ₦107 billion from the bond has been allocated to the Pension Protection Fund, which will offer financial relief to low-income pensioners who lack sufficient savings for a sustainable retirement.
She noted that this is the first time the Federal Government is directly contributing to the Pension Protection Fund, calling it a significant step toward strengthening pension security.
She further explained that the ₦758 billion bond would also clear long-standing arrears, including ₦253 billion for accrued pension rights owed to retirees from Treasury-funded Ministries, Departments, and Agencies.
Oloworaran stated that ₦388 billion has been allocated to settle unpaid pension increases dating back to 2007, benefiting over 250,000 retirees.
She also noted that ₦11 billion has been set aside to address pension shortfalls for university professors, ensuring that eligible retirees in the academic sector receive their full salaries upon retirement, in line with pension reforms.
“This landmark bond resolves all accumulated pension liabilities, covering: Accrued Pension Rights – N253bn has been allocated to settle outstanding entitlements for retirees of FGN Treasury-funded MDAs, addressing the delays caused by previous funding shortfalls. Going forward, accrued pension rights will be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.
“Pension Increases Since 2007 – N388bn has been provided to clear pension increases that have remained unpaid for nearly two decades. This long-overdue entitlement, benefiting over 250,000 retirees, reflects the administration’s commitment to ensuring pensions remain fair and responsive to economic realities.
“Pension Protection Fund – For the first time, the FGN is contributing N107bn to the PPF, ensuring that pensioners — particularly low-income earners —receive a living wage in retirement. This is a major step towards strengthening financial security for all retirees under the CPS.
“University Professors’ Pension Shortfall – N11bn has been allocated to fully implement the provision allowing eligible university professors to retire on their full salary, addressing the funding gaps that previously hindered its execution,” she stated.
She praised President Bola Tinubu for what she called a bold and decisive step in pension administration, emphasizing that this intervention has set the Contributory Pension Scheme on a sustainable path.
She assured that PenCom would collaborate with all relevant stakeholders to facilitate the smooth issuance of the bond and ensure prompt disbursement of pension payments.
