By Matthew Denis
The Director-General of the National Pension Commission (PenCom), Ms Omolola Oloworaran, has described the approval of N758 billion to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS) as a significant milestone.
Speaking at a press conference in Abuja on Thursday, she noted that pension reforms have transformed the system, ensuring the fulfilment of its mandate to provide timely and adequate retirement benefits to pensioners.
“A defining milestone in our nation’s pension administration has been achieved through the approval of a N758 billion Federal Government bond to fully settle outstanding pension liabilities under the CPS,” Oloworaran stated.
She added that President Bola Tinubu’s approval signals a new era for pensioners, reinforcing the CPS’s commitment to ensuring timely and sufficient retirement benefits.
The PenCom DG emphasised that the President has set a new benchmark for pension administration in the country, realigning the CPS towards sustainability. However, she stressed that achieving full implementation of the reform requires strategic collaboration.
“PenCom will continue working with all stakeholders to ensure the seamless issuance of the bond and the timely disbursement of pension payments,” she assured.
“Our priority remains efficiency, transparency, and accountability in the administration of retirement benefits.”
Oloworaran explained that resolving pension liabilities not only restores confidence in the CPS but also strengthens the pension industry for long-term growth. Beyond the immediate payments to retirees, she said it would stimulate the economy, deepen the capital market, and enhance financial stability.
“The landmark bond resolves all accumulated pension liabilities, covering: N253 billion in accrued pension rights, which will be used to settle outstanding entitlements for retirees from federal government Treasury-funded Ministries, Departments, and Agencies (MDAs),” she stated.
She further explained that to prevent delays caused by previous funding shortfalls, accrued pension rights would henceforth be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.
Oloworaran also revealed that N388 billion has been approved to cover pension increases since 2007, benefitting over 250,000 retirees who had long awaited the adjustment.
“This decision reflects the administration’s commitment to ensuring that pensions remain fair and responsive to economic realities,” she said.
Additionally, the DG disclosed that N107 billion has been allocated for the Pension Protection Fund (PPF), marking the first time the Federal Government is contributing to this fund.
“For the first time, the Federal Government is contributing to the PPF, ensuring that pensioners, particularly low-income earners, receive a living wage in retirement,” she noted.
“This is a major step towards strengthening financial security for all retirees under the CPS.”
Furthermore, N11 billion has been allocated to address the university professors’ pension shortfall.
Oloworaran explained that this fund would enable the implementation of provisions allowing eligible university professors to retire on their full salary, resolving funding gaps that previously hindered execution.
“With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimising investment returns,” she said.
“A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can securely save for their future.”