PenCom details N758bn pension disbursement as reforms strengthen retirement security, fiscal credibility

The National Pension Commission (PenCom) has provided a detailed breakdown of the N757.9 billion, rounded up to N758 billion, disbursed by the Federal Government to settle long-standing pension liabilities, describing the intervention as a major boost to retirement security and a signal of renewed fiscal credibility.

The Commission said the funds addressed pension obligations dating back to 2007 and marked one of the most significant pension interventions in Nigeria’s history to settle outstanding pension liabilities across four major areas, with pension increases accounting for the largest share.

According to the Commission, N387 billion allocated for pension increase owed to retirees. Of this, N362.74 billion has already been disbursed to about 9.1 million retirees, while the remaining N24.7 billion is being processed for payment.

The disbursement also includes N252 billion for accrued rights of federal workers who retired before the 2012 Contributory Pension Scheme (CPS), N107 billion for the Pension Protection Fund to support low-income retirees, and N10 billion specifically set aside to settle outstanding pension obligations for professors across federal tertiary institutions, with payments being made in batches.

In addition, PenCom reported that ₦107 billion was remitted to cover a 2.5% shortfall in Federal Government pension contributions between 2017 and 2021, benefiting about 750,223 Retirement Savings Accounts.

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Overall, more than N577.58 billion of the approved funds has already been credited to the accounts of retirees and contributors, directly impacting over 1.05 million RSAs nationwide. The remaining balance continues to be processed.

Speaking at the 2025 Pension Revolution Summit, themed “The 365-Days Scorecard,” Omolola Oloworaran was appointed Director General, Director-General of PenCom described the intervention as an unprecedented demonstration of the Federal Government’s commitment to honouring pension obligations, commending President Bola Ahmed Tinubu for prioritising the welfare of retirees and strengthening confidence in the pension system.

“One of the most historic milestones of this year was the presidential approval and disbursement of 758 billion naira to settle outstanding pension liabilities. This unprecedented intervention set a clear and powerful signal that Nigeria honours its promises to its workers and retirees. Again, I say we have a talk and do respect,” she said

She explained that the funds were applied across key pension obligations, including accrued rights, pension increases, the Pension Protection Fund, and long-standing pension shortfalls for professors in federal tertiary institutions.

She added that the intervention had reduced waiting time for payment of approved accrued rights from as long as 21 months to zero, with effect from July 2025.

Beyond the pension clearance, Oloworaran highlighted broader reforms under its Pension Revolution 2.0 agenda, including full automation of key pension processes, enhanced benefit processing platforms, and the launch of the Pension Healthcare Initiative (PENCARE) to support affordable healthcare for low-income retirees.

The reforms, she said, were structural rather than cosmetic, covering new regulations, stronger supervision, governance reforms, digital transformation, and industry realignment.

She said that the Commission also reported stronger compliance across the industry following the introduction of stricter pension clearance requirements. Pension contribution recoveries rose to ₦4.04 billion between January and November 2025, representing a 180% increase compared to the full year 2024.

“From January to November this year, total pension recoveries reached 4.04 billion Naira, compared to a total of 1.44 billion for the whole of 2024. This represents an increase of 180%, that’s almost 200%.

“But most notably, 2.06 billion was recovered in the third quarter of 2025 alone. That is equaling the total amount that was recovered in 2024. And we also saw a similar shift, evident in compliance behavior,” The DG said

According to her, the combined effect of the ₦758 billion intervention and ongoing structural reforms had reinforced trust in Nigeria’s contributory pension scheme, improved benefit adequacy, and strengthened the pension system’s role as a pillar of long-term financial stability.

To improve benefit adequacy, PenCom also introduced Pension Boost 1.0, which has added ₦2.68 billion to monthly pension payments for retirees under the Contributory Pension Scheme since June 2025. She said the initiative was already improving retirees’ quality of life and preserving dignity in retirement.

On the technology front, the Director-General disclosed that PenCom had achieved full automation of critical pension processes, including pension payment certificates, benefit processing, and contribution remittance platforms, significantly reducing delays and improving transparency.

Addressing pension coverage, Oloworaran said PenCom restructured the micro pension scheme into the Personal Pension Plan to accommodate artisans, traders, gig workers, and other informal sector participants.

The revamped scheme simplifies onboarding, expands digital enrolment, and introduces accredited pension agents, a move she said would drive financial inclusion while creating employment opportunities for young Nigerians.

On governance, the PenCom DG said capital requirements for pension operators had been raised to strengthen institutions, improve risk management, and enhance professionalism across the industry.

She added that new governance rules had eliminated shadow directorships, insisting that transparency and accountability were non-negotiable in managing Nigerians’ retirement savings.

Oloworaran stressed that the summit was not a celebration but a review and commitment to deepen reforms, expand coverage, strengthen supervision, and protect retirees and all Retirement Savings Account holders.

She commended industry operators, the media, and PenCom staff for their roles in advancing the reforms, stating that the pension revolution was no longer a promise but a process in motion that would continue to shape a more inclusive, resilient, and trusted pension system in Nigeria.

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