By Majeed Salaam
In a significant move to address long-standing pension arrears and restore confidence in Nigeria’s pension administration, the federal government has endorsed N758 billion in bonds to offset outstanding pension liabilities, including unpaid increases dating back to 2007.
The Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, made this known recently in Yola, Adamawa State, during a two-day sensitisation workshop on the workings of the Contributory Pension Scheme (CPS) for employees and pensioners in the North-East.
Represented by the Commissioner for Administration, Alhaji Bello Abubakar, Ms. Oloworaran described the bond approval as a decisive intervention by President Bola Tinubu, aimed at bringing relief to vulnerable retirees and reinforcing the integrity of the pension system.
“This approval reflects the government’s commitment to the welfare of senior citizens and its determination to clear inherited liabilities while restoring trust in the pension structure,” she said.
According to her, the move is part of broader pension sector reforms designed to improve efficiency, transparency, and access for retirees under the CPS.
Raising Benefits and Eliminating Payment Delays
Ms. Oloworaran noted that recent reforms have already produced measurable results, including pension increases for over 241,000 retirees, representing 80 percent of those under the programmed withdrawal arrangement.
“The increases raised monthly pension payments from N12.15 billion to N14.83 billion, effective from June 2025,” she revealed.
She further explained that, since July 2025, retirees now receive their benefits immediately upon retirement, eliminating the long waiting periods that previously caused hardship and uncertainty among pensioners.
In addition, a framework has been developed for the reintroduction of gratuity payments for federal civil servants, in line with Section 4(4) of the Pension Reform Act (PRA) 2014. The initiative, she said, aims to strengthen post-retirement welfare and provide a more comprehensive safety net for public sector workers.
“The proposed restoration of gratuity is another major step toward ensuring that workers retire with dignity and financial security,” Ms. Oloworaran added.
Strengthening Trust and Awareness
The PenCom DG explained that the sensitisation workshop was part of the commission’s nationwide efforts to build public understanding and trust in the CPS while addressing misconceptions about its implementation.
She said that the forum provided an opportunity for retirees, employees, and stakeholders to engage directly with regulators, share feedback, and clarify issues surrounding pension management and entitlements.
“Sustained awareness is essential for accountability and transparency. Our goal is to ensure that every Nigerian worker understands their pension rights, obligations, and benefits,” she stated.
Collaboration and Institutional Support
Also speaking, the Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), Ekpo Nta, represented by the Deputy Director of Compensation, Chika Ochor, commended PenCom’s efforts in deepening pension education and transparency.
He said that the contributory pension system provides a critical safety net that guarantees financial stability for retirees, reduces poverty, and promotes self-reliance in old age.
“The pension system ensures retirees can maintain their standard of living and reduces dependence on family or government support,” Nta said, noting that the Tinubu administration has introduced far-reaching reforms to sustain prompt and predictable pension payments.
The Director-General of the National Orientation Agency (NOA), Lanre Issa-Onilu, also lauded the collaboration between PenCom and NSIWC, describing it as an important initiative to bridge knowledge gaps and promote understanding of the CPS and online enrolment processes.
He reaffirmed NOA’s commitment to supporting national reorientation efforts that promote values of transparency, accountability, and citizen empowerment.
The two-day workshop, organised by PenCom in collaboration with NSIWC, is part of a nationwide sensitisation series aimed at improving literacy around Nigeria’s pension reforms and enhancing the welfare of retirees across the six geopolitical zones.
