FG Approves ₦758bn Bonds to Clear Pension Backlogs — PenCom DG

The Federal Government has approved ₦758 billion in bonds to liquidate long-standing pension liabilities, including arrears from pension increases dating back to 2007, the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has announced.

Speaking in Yola at a two-day sensitisation workshop on the Contributory Pension Scheme (CPS) for employees and pensioners in the North-East, Oloworaran, represented by PenCom’s Commissioner for Administration, Alhaji Bello Abubakar ,described the measure as a bold step by President Bola Tinubu to bring relief to vulnerable retirees and rebuild confidence in the pension system.

According to PenCom, the bond issuance forms part of a wider package of reforms now underway in the pensions sector. Key interventions include pension increases for over 241,000 retirees, representing about 80% of those on programmed withdrawal. The adjustments have raised aggregate monthly payments from ₦12.15 billion to ₦14.83 billion, effective June 2025.

PenCom also said it has eliminated waiting periods for accessing retirement benefits. With effect from July 2025, retirees under the CPS can receive their entitlements immediately after exit, subject to completion of standard documentation. In addition, the Commission has proposed the reintroduction of gratuity for federal civil servants, with a draft framework prepared to restore gratuity in line with Section 4(4) of the Pension Reform Act, 2014.

Oloworaran noted that the Yola workshop is part of ongoing public engagement to address misconceptions about the CPS, deepen financial literacy around retirement planning, and gather feedback from stakeholders. “Our goal is to enhance post-retirement income, protect retirees from poverty, and strengthen trust in the reformed system,” she said.

The Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), Ekpo Nta, represented by the Deputy Director of Compensation, Chika Ochor, said the session would improve understanding of CPS benefits and underscore the role of pensions in securing living standards in old age. He added that the current administration has introduced far-reaching reforms to ensure the prompt and sustainable payment of entitlements.

Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, commended PenCom and NSIWC for collaborating to close knowledge gaps on CPS operations and online enrolment. He reaffirmed NOA’s commitment to promoting policy awareness and national values.