The National Pension Commission (PenCom), has begun the disbursement of a ₦758 billion Federal Government pension bond to clear outstanding pension liabilities, with over ₦577 billion already released to retirees and pension contributors nationwide.
The intervention has so far directly impacted about 1,053,000 Retirement Savings Accounts (RSAs), making it one of the most far-reaching pension payments in Nigeria’s history.
Oloworaran: A Landmark Pension Intervention
PenCom Director-General, Ms. Omolola Oloworaran, disclosed this on Tuesday at the 2025 Pension Revolution Summit in Abuja, describing the exercise as a major step toward restoring dignity and financial stability to retirees.
She explained that the bond disbursement targets accrued pension rights owed to federal public sector retirees under the Contributory Pension Scheme (CPS), covering benefits earned before the scheme became fully operational.
₦387bn for Pension Increases, ₦107bn for FG Shortfall
Breaking down the figures, Oloworaran revealed that ₦387 billion was approved for pension increases, with ₦362.74 billion already paid.
An additional ₦107 billion was released to offset the Federal Government’s 2.5 per cent contribution shortfall between 2017 and 2021, benefiting about 750,223 RSAs. Payments for university professors and special retirees, she said, are ongoing and being processed in batches.
Stricter Enforcement Drives Employer Recoveries
PenCom has also intensified enforcement against defaulting employers. Between January and November 2025, the commission recovered ₦4.04 billion, compared to ₦1.44 billion recovered in the entire 2024—representing a 118 per cent increase.
Notably, ₦2.06 billion was recovered in the third quarter alone, matching total recoveries for the whole of the previous year.
No Pension Certificate, No Business
Oloworaran attributed the surge in recoveries to tougher compliance rules that restrict non-compliant employers from participating in financial transactions.
“Essentially, if you don’t have a pension federal certificate, you can’t transact with custodians, operators, or financial institutions,” she said.
Pension Revolution 2.0 and the Human Impact
The DG noted that the reforms fall under Pension Revolution 2.0, which also introduced Pension Boost 1.0, adding ₦2.6 billion to monthly pension payments since June 2025.
“These are not just numbers. They are meals on tables, medicine bought, debts settled, and dignity preserved,” Oloworaran said.
“Retirement should be a season of peace, not a period defined by anxiety over medical bills.”
Restoring Confidence in the Pension System
With the ₦758 billion bond disbursement underway and enforcement measures tightened, PenCom says it is firmly on course to clear pension arrears, strengthen compliance, and rebuild confidence in Nigeria’s pension system—offering retirees the financial security the scheme was designed to provide.