The Federal Government, through the National Pension Commission (PenCom), has paid off the outstanding pension money owed to many retired federal workers. This move clears an 18-month delay, helping most pensioners finally get their money on time.
Since the start of the Contributory Pension Scheme (CPS) in 2004, the government has paid a total of ₦1.2 trillion in pension debts. These payments include money owed up to March 31, 2025.
In the CPS, workers earn accrued pension rights from past years of service, even before monthly payments can start. These rights must be paid into the retiree’s Retirement Savings Account (RSA) before they can receive their pension. Because of delays, many retirees couldn’t access their savings before.
But in the last two years, the government has paid over ₦700 billion to fix this problem. As of March 2025, the backlog has been cleared. Only payments for April and May are left to be paid later.
To get enough money to pay these debts, the government created ₦750 billion in pension bonds. These bonds help the government raise money quickly and handle any remaining payments. This plan will help finish off the last of the unpaid pensions in the coming months.
PenCom is also starting a “Pension Boost” program in June 2025. This will raise the amount paid each month to pensioners from ₦8.2 billion to ₦11.2 billion. Around 223,000 retirees under the “Programmed Withdrawal” plan will benefit from this increase, thanks to profits made from investing pension funds.
Besides these payments, PenCom is warning employers to follow the pension rules. Those who fail to submit pension contributions on time may face penalties. This includes losing the right to get government contracts or take part in regulated business deals. PenCom says this is to protect the pension system and make sure workers get what they are owed.
Now that major delays have been cleared and new plans are in place to improve payments, retired federal workers can expect more regular and reliable pension money. This is a big step forward in fixing trust in the system and showing respect for the service of Nigeria’s retired government employees.
Source: Businesselitesafrica.com
