The Federal Government has cleared inherited pension liabilities dating back to 2007 through a N758 billion intervention bond, bringing relief to 957,045 pension beneficiaries across the country.
Key Highlights
- Federal Government clears 17-year-old inherited pension liabilities dating back to 2007.
- N758 billion intervention bond used to settle outstanding pension obligations.
- About 957,045 beneficiaries affected by the pension liability settlement.
- Accrued pension rights for federal employees retiring up to December 2029 have been credited to their Retirement Savings Accounts.
- PenCom introduces a zero waiting time policy to reduce delays between retirement and pension payments.
- Pension benefit processing time has reportedly dropped from up to 21 months to about 48 hours.
- 2,116 former NSITF retirees received an average pension increase of 1,173 per cent, alongside N8.7 billion in arrears.
- Monthly payments under the Pension Boost 1.0 initiative rose from N12.15 billion to N14.83 billion.
- PenCare healthcare support will initially target 30,000 low-income retirees.
- PenCom plans to expand the micro pension scheme to traders, artisans and other informal-sector workers.
The development was disclosed by the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, during the 2026 PenCom Media Conference in Lagos on Tuesday.
FG Clears Pension Liabilities Dating Back To 2007
Delivering a keynote address titled “From Reform to Reality: Renewed Hope, Pension Security for All Nigerians,” Oloworaran said the settlement marked a major step towards resolving long-standing pension obligations inherited across successive administrations.
She said the Federal Government had chosen to settle the outstanding liabilities rather than allow them to remain a burden for future administrations.
“The federal government cleared all inherited pension liabilities, some dating back to 2007. These obligations passed through multiple administrations, but this government chose to settle them. That is statesmanship, a debt paid, not just a promise,” she said.
Oloworaran said the settlement represented a significant change in the way the country treats workers after their years of service, stressing that retirees should not be left waiting indefinitely for benefits they had earned.
“Every nation makes a promise to the people who build it, those who serve faithfully and diligently. When your working years are done, your country should not forget you,” she said.
According to her, the liquidation of the legacy pension liabilities forms part of wider reforms aimed at strengthening pension administration and improving retirement security.
PenCom Credits Pension Rights For Workers Retiring By 2029
PenCom also disclosed that accrued pension rights for federal employees expected to retire up to December 2029 have already been credited to their Retirement Savings Accounts.
The commission said the payments followed a one-time verification and enrolment exercise designed to establish accurate records for affected workers ahead of retirement.
The move is intended to ensure that pension obligations are properly documented before workers leave active service and reduce delays in accessing retirement benefits.
PenCom Introduces Zero Waiting Time Pension Policy
To minimise the possibility of future pension backlogs, PenCom has introduced a zero waiting time policy, aimed at linking retirement benefit payments more closely with the monthly public service salary cycle.
The policy is expected to enable retiring workers to transition into retirement without prolonged gaps between their final salaries and pension payments.
PenCom also reported a significant reduction in the time required to process pension benefits, with turnaround times falling from as long as 21 months to about 48 hours.
2,116 NSITF Retirees Receive Pension Increase
The conference also highlighted increased payments under existing pension schemes, including benefits for retirees of the defunct Nigeria Social Insurance Trust Fund (NSITF).
Following a statutory review of NSITF pension payments covering 21 years, 2,116 retirees reportedly received an average increase of 1,173 per cent, alongside the payment of N8.7 billion in outstanding arrears.
The development represents one of the measures highlighted by PenCom as part of efforts to address outstanding pension obligations and improve retirement income.
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Pension Boost 1.0 Raises Monthly Payments
Under the Pension Boost 1.0 initiative, monthly payments to retirees under the contributory pension scheme increased from N12.15 billion to N14.83 billion.
The increase has raised monthly pension payments for more than 241,000 retirees nationwide.
Oloworaran said the government’s responsibility to workers should extend beyond their years of active service, arguing that the treatment of retirees remains an important measure of how a government values its workforce.
PenCare To Provide Healthcare Support For 30,000 Retirees
PenCom also announced additional measures aimed at improving retirees’ welfare and expanding pension coverage.
One of the initiatives is the PenCare free healthcare support programme, which is expected to begin with a pilot targeting 30,000 low-income retirees.
The programme is part of broader efforts to address the welfare needs of retirees beyond monthly pension payments.
PenCom Targets Informal Workers With Micro Pension Expansion
The commission also plans to activate a statutory minimum pension guarantee baseline and expand the micro pension plan to reach more workers in the informal sector.
The expansion will target traders, artisans and other informal-sector workers through a nationwide network of agents, with the aim of bringing more Nigerians into the formal pension system.
The initiative is expected to widen pension coverage among workers who are outside traditional formal employment and currently have limited access to contributory pension arrangements.
FG, PenCom Push Wider Pension Security
The pension reforms announced at the 2026 PenCom Media Conference are focused on addressing legacy liabilities, reducing delays in benefit payments, improving retirees’ welfare and expanding pension coverage.
PenCom said the measures are intended to strengthen retirement security while ensuring that more Nigerian workers, including those in the informal sector, can participate in the pension system.
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