FG Clears N758bn Pension Arrears, 957,045 Benefit

The Federal Government has cleared N758 billion in inherited pension liabilities dating back to 2007, providing financial relief to 957,045 beneficiaries across the country.

The Director-General of the National Pension Commission, Omolola Oloworaran, disclosed this on Tuesday at the 2026 PenCom Media Conference in Lagos.

Oloworaran said the liabilities were settled through a N758 billion Federal Government intervention bond, marking what she described as the resolution of a longstanding backlog inherited across successive administrations.

She said the government had also moved ahead of scheduled retirements by crediting accrued pension rights to the Retirement Savings Accounts of verified federal employees expected to retire up to December 2029.

According to PenCom, the exercise followed a one-time verification and enrolment process designed to prevent delays in the payment of retirement benefits.

The commission has also introduced a Zero Waiting Time Policy aimed at aligning pension payments with monthly public-sector salary cycles.

Oloworaran said the processing time for retirement benefits had been reduced from as long as 21 months to 48 hours under the new arrangement.

PenCom also announced improvements for retirees of the defunct Nigeria Social Insurance Trust Fund.

A 21-year review of their pension payments resulted in an average 1,173 per cent increase for 2,116 NSITF retirees, while N8.7 billion in arrears was paid.

The commission said Pension Boost 1.0 had also increased monthly payments under the Contributory Pension Scheme from N12.15 billion to N14.83 billion, benefiting more than 241,000 retirees.

Beyond clearing existing liabilities, PenCom said pension assets increased to N31.48 trillion by June 2026, while 938,229 Nigerians joined the Contributory Pension Scheme between July 2024 and June 2026.

The commission is also preparing additional welfare measures, including PenCare, a free healthcare support programme expected to initially cover 30,000 low-income retirees.

PenCom said it would also activate a statutory Minimum Pension Guarantee and expand the Micro Pension Plan to reach more informal-sector workers, including traders and artisans.

Oloworaran said the reforms were aimed at ensuring that Nigerians who have completed their working years receive their retirement benefits without prolonged delays.