Pension assets hit record N31.48trn as FG clears 19-year arrears
…51% growth in retirement savings
…N758bn bond benefits 957,045 Nigerians
…As Pencom unveils fresh reforms for informal sector
By Precious Mark
Nigeria’s pension assets have recorded a remarkable 51 per cent increase, climbing from N20.79 trillion in July 2024 to N31.48 trillion as of July 10, 2026, with more than N10.7 trillion in additional retirement wealth created over the past 24 months.
Riding on this growth, the National Pension Commission (PenCom) has also resolved a 19-year backlog through a N758 billion Federal Government Pension Bond.
PenCom Director-General, Ms Omolola Oloworaran, disclosed the figures on Tuesday during a State House press briefing in Abuja to mark her second anniversary in office after her appointment by President Bola Ahmed Tinubu.
Oloworaran announced that the commission had substantially resolved a pension crisis dating back to 2007 through the deployment of the historic N758 billion Federal Government Pension Bond, which directly benefited 957,045 Nigerians.
The intervention cleared major outstanding obligations, including N387.5 billion for pension increases, N253 billion for accrued rights, N107 billion for the Pension Protection Fund, and N10 billion for professors’ benefits.
As a result, federal accrued pension rights have undergone a complete turnaround, shifting from 21 months of outstanding arrears in July 2024 to an unprecedented 41-month surplus by July 2026. The development enabled the payment of benefits for 73,732 beneficiaries up to December 2029 through the COBRA one-time enrolment system.
“What changed was simple: his country decided to keep its promise,” Oloworaran said while recounting the story of a retired factory worker whose monthly pension rose from N18,000, which he had received for 21 years, to N206,000.
“The dignity of work must be matched by dignity in retirement,” she added.
According to the PenCom chief, the sharp growth in pension assets reflects renewed public confidence in the Contributory Pension Scheme, as the number of active contributors increased from 10.42 million to 11.32 million, bringing 938,229 additional workers under pension protection.
The commission also outlined three major upward reviews implemented over the past two years. The first, Pension Boost 1.0, raised aggregate monthly pension payments by 22 per cent, increasing disbursements from N12.2 billion to N14.9 billion.
A flat N32,000 monthly consequential adjustment was equally introduced for more than 195,000 eligible retirees from treasury-funded Ministries, Departments and Agencies (MDAs) who retired on or before July 29, 2024, enabling their pensions to reflect the new national minimum wage.
PenCom further carried out the first review of Nigeria Social Insurance Trust Fund (NSITF) pensions in 21 years, approving increases of more than 1,000 per cent, reaching as high as 1,173 per cent for affected pensioners.
During the exercise, one retiree’s monthly pension rose from N18,000 to N206,000 and was accompanied by N8 million in outstanding arrears, forming part of N8.7 billion in back payments settled for 2,116 NSITF retirees.
“Behind every percentage is a human being, a family, and a life restored,” Oloworaran said.
She explained that the three pension increases collectively represent the largest amount ever placed directly into the hands of pensioners since the introduction of the scheme.
Operational performance also recorded notable gains. The number of retirees receiving pension benefits increased from 658,811 in July 2024 to 819,411 by July 2026, while total benefit payments expanded from N2.3 trillion to N3.44 trillion. The progress was supported by a new directive requiring all Pension Fund Administrators (PFAs) to approve benefit applications within a maximum of 48 hours.
To safeguard workers’ retirement savings, PenCom recorded a 28 per cent improvement in compliance and recovered N36.6 billion in unremitted employer pension contributions over the past two years. The figure exceeds the N28.6 billion recovered during all previous years combined.
Oloworaran disclosed that mandatory pension clearance is now being enforced across the entire system through collaboration with the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Other Related Offences Commission (ICPC). She also revealed that a Presidential Executive Order designed to strengthen compliance further is currently being prepared.
She announced that PenCom would, within the next three months, introduce the Minimum Pension Guarantee to provide an income floor for retirees. The commission will also roll out PenCare, a free health insurance initiative beginning with a pilot programme covering 30,000 vulnerable retirees before nationwide expansion.
“No Nigerian should retire into poverty, and no Nigerian should retire into ill health,” the Director-General said.
As part of efforts to modernise pension administration, PenCom has fully digitised its operations through platforms including PenCap for remittance tracking, eHub for online clearance certificates, PCRS for biometric validation and COBRA for pre-retirement enrolment.
The commission is also preparing to establish the Personal Pension Plan to extend pension coverage to workers in the informal sector, including fintech operators, cooperatives, market women, artisans, transport workers and farmers. The initiative will be supported by a nationwide network of Accredited Pension Agents expected to create thousands of community-based jobs.
Oloworaran further disclosed that new investment frameworks are being finalised to channel long-term pension funds into strategic national infrastructure projects, including roads, ports, energy, healthcare, education and agriculture, while ensuring competitive real returns for contributors.
“Under the leadership of President Bola Ahmed Tinubu, pension reform has evolved beyond the payment of benefits. It is creating jobs, widening economic opportunities, financing national development and restoring dignity to retirement for millions of Nigerians,” Oloworaran said.