FG Approves ₦32,000 Monthly for Federal Retired Workers

The Federal Government has approved a ₦758 billion bond to clear outstanding pension liabilities and raise monthly payments for all retired federal workers under the Contributory Pension Scheme (CPS). 

Once disbursement begins, retirees are to receive an additional ₦32,000 per month, reflecting the National Minimum Wage Amendment Act 2024 and consequential adjustments.

According to officials, President Bola Ahmed Tinubu authorised the bond alongside a minimum pension guarantee, ensuring the most vulnerable pensioners on the CPS are protected.

 On August 6, the President directed the prompt implementation of the increases and safety-net measures. The National Assembly has concurred with the directive, paving the way for release of funds. 

The National Pension Commission (PenCom) says Pension Fund Administrators (PFAs) will credit retirees’ accounts immediately once proceeds hit the system, with PenCom providing oversight.

Who gets the ₦32,000 baseline

PenCom officials explained that the ₦32,000 serves as a baseline top-up for CPS retirees in the education and health sectors, security services, and the Armed Forces, regardless of individual RSA balances. The minimum pension guarantee will function as a floor so that lower-income retirees do not fall below a livable threshold.

How the ₦758bn will be deployed

PenCom Director-General Omolola Oloworaran outlined a three-part allocation plan:

• ₦253bn to clear accrued rights—entitlements owed to federal workers employed before the CPS began in 2004 or within about three years of retirement at the time. This is intended to end backlogs that have delayed payments.
  
• ₦387.5bn to settle pension increases dating back to 2007, closing a multi-year gap in adjustments that were never implemented.
  
• ₦107bn for the Pension Protection Fund, which will augment low-income retirees’ benefits so they can earn a livable pension.

PenCom said PFAs have committed to prompt crediting once the bond is issued and cash is available, while the commission will monitor compliance to ensure eligible beneficiaries are paid without delay.