The Federal Government has approved ₦758 billion in bonds to clear pension backlogs and strengthen the pension system, marking a major intervention aimed at restoring confidence among retirees and stakeholders in Nigeria’s Contributory Pension Scheme (CPS).
Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed the bond approval during a sensitisation workshop held in Yola for employees and pensioners in the North-East. Represented by the Commissioner for Administration, Alhaji Bello Abubakar, Oloworaran described the move as a bold step by President Bola Tinubu to bring relief to vulnerable pensioners and reinforce the credibility of the pension system.
The ₦758 billion bond package is designed to offset long-standing pension liabilities, including pension increases owed since 2007. Oloworaran highlighted that over 241,000 retirees—representing 80% of those under the programmed withdrawal arrangement—have already benefited from pension increases, raising monthly payments from ₦12.15 billion to ₦14.83 billion effective June 2025.
She also announced that PenCom has eliminated waiting periods for pension payments. Since July 2025, retirees now receive their benefits immediately upon retirement, a reform aimed at improving efficiency and trust in the CPS.
Another key reform includes the proposed reintroduction of gratuity for civil servants. A framework has been developed to restore gratuity benefits for federal workers under the CPS, in line with Section 4(4) of the Pension Reform Act (PRA) 2014.
The workshop, organised in collaboration with the National Salaries, Incomes, and Wages Commission (NSIWC), aimed to deepen understanding of the CPS and address misconceptions. Ekpo Nta, Chairman of NSIWC, represented by Deputy Director Chika Ochor, emphasized that pensions provide financial security, reduce poverty, and prevent dependency in old age.
Lanre Issa-Onilu, Director-General of the National Orientation Agency (NOA), praised PenCom and NSIWC for their efforts in bridging knowledge gaps and reaffirmed NOA’s commitment to promoting national values and policy awareness.
The pension system reforms reflect the Tinubu administration’s broader agenda for fiscal sustainability, social welfare, and inclusive economic development.
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