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FG clears N758bn inherited pension liabilities, benefiting 957,045 beneficiaries.
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PenCom raises pensions for 241,000 retirees as monthly payments climb from N12.15bn to N14.83bn.
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Pension assets rise to N31.48tn as 938,229 Nigerians join the Contributory Pension Scheme.
October 06, (THEWILL) – The Federal Government has cleared N758 billion in inherited pension liabilities, with payments reaching 957,045 beneficiaries, as the National Pension Commission (PenCom) announced a series of reforms aimed at improving retirement security for Nigerians.
Director-General of PenCom, Omolola Oloworaran, disclosed this on Tuesday at the 2026 PenCom Media Conference in Lagos, saying the development marked a shift from pension reform commitments to measurable outcomes.
According to Oloworaran, the liabilities, some of which had remained outstanding since 2007, were settled through a N758 billion Federal Government Pension Bond approved by President Bola Ahmed Tinubu.
She said the payment had benefited nearly one million Nigerians whose pension obligations had been carried over from previous administrations.
Pension increases, faster benefit payments
Oloworaran disclosed that more than 241,000 retirees under the Contributory Pension Scheme had received higher monthly pensions under the first phase of the pension increase programme.
She said total monthly pension payments to the affected retirees rose from N12.15 billion to N14.83 billion, representing an additional N2.68 billion in monthly payments.
Another major development was the review of pensions for 2,116 retirees of the defunct Nigeria Social Insurance Trust Fund, whose pensions had remained unchanged since 2005.
The review resulted in a 1,173 percent increase in their combined monthly pensions, from N12.56 million to N159.95 million, while N8.70 billion in arrears had been paid.
Oloworaran said one retiree who previously received about N18,000 monthly now receives approximately N206,000.
She added that PenCom had introduced measures to reduce delays in the payment of accrued pension rights to federal employees approaching retirement.
Through a one-time verification and enrolment exercise, accrued rights had been credited to the Retirement Savings Accounts of enrolled federal employees due to retire up to December 2029.
Under the commission’s Zero Waiting Time policy, federal retirees are expected to begin receiving pension benefits as they retire, in line with the monthly salary cycle.
The commission has also reduced the approval period for retirement benefits from as much as 21 months to 48 hours.
Oloworaran said the 48-hour processing period was now a mandatory service standard for Pension Fund Administrators.
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Another initiative, the Exit Benefit Scheme, became effective on January 1, 2026, for eligible employees of treasury-funded federal MDAs with at least 10 years of qualifying service.
Beneficiaries receive an additional payment equivalent to 100 per cent of their total annual emolument alongside their normal pension. The first 175 retirees received about N1.1 billion in August.
Meanwhile, PenCom said pension assets increased from N20.79 trillion in July 2024 to N31.48 trillion in June 2026, representing an increase of more than N10.7 trillion. During the same period, 938,229 Nigerians joined the Contributory Pension Scheme.
PenCom also disclosed that recoveries from defaulting employers stood at N36.6 billion as of July 2026, surpassing the previous annual record.
The commission said it would introduce PenCare during National Pension Week, targeting 30,000 low-income retirees with access to essential healthcare at no cost.
It will also activate the Minimum Pension Guarantee, establishing a minimum benefit for eligible retirees under the Contributory Pension Scheme.
Oloworaran said PenCom would continue to focus on expanding coverage, strengthening compliance, and ensuring faster and more adequate retirement benefits for Nigerians.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
