Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, has stated that the N758 billion Federal Government of Nigeria (FGN) bond approved by the government will be released within three months to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
She made this known at a Press Conference on Thursday.
On February 5, the Federal Executive Council (FEC) approved the issuance of a N758 billion bond to settle outstanding pension liabilities for federal pensioners.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had stated that the approval would allow the Debt Management Office (DMO) raise the funds needed to settle long-standing pension arrears.
Oloworaran said the approved bond marks a defining milestone in the nation’s pension administration and a new dawn for pensioners, ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits.
She said the bond resolves all accumulated pension liabilities, covering Accrued Pension Rights, Pension Increases Since 2007, the Pension Protection Fund (PPF), and University Professors’ Pension Shortfall.
“N253 billion has been allocated to settle outstanding entitlements for retirees of FGN Treasury-funded MDAs, addressing the delays caused by previous funding shortfalls. Going forward, accrued pension rights will be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.
“N388 billion has been provided to clear pension increases that have remained unpaid for nearly two decades. This long-overdue entitlement, benefiting over 250,000 retirees, reflects the administration’s commitment to ensuring pensions remain fair and responsive to economic realities.
“For the first time, the FGN is contributing N107 billion to the PPF, ensuring that pensioners—particularly low-income earners—receive a living wage in retirement. This is a major step towards strengthening financial security for all retirees under the CPS.
“N11 billion has been allocated to fully implement the provision allowing eligible university professors to retire on their full salary, addressing the funding gaps that previously hindered its execution,” the director-general stated.
Oloworaran, however, explained that the FEC approval does not imply that funds have already been released.
“No, it doesn’t. This is just an approval, but it’s a significant step. It means we have approval; the bonds will be issued, and funds will be released.
“And by my estimation, I am hoping that within the next three months, we should have the bond issued, and funds will be released. But I expect it to happen sooner rather than later,” she added.
The director-general stressed that with this approval and the expected bond issuance, all accrued rights payments and backlogs will now be made to the respective Pension Fund Administrators (PFAs), and they can make timely payments to all retirees.
