The National Pension Commission (PenCom) has disbursed over N577.26 billion to more than 1.05 million Retirement Savings Accounts (RSAs) and pension contributors, addressing long-standing pension arrears under the Contributory Pension Scheme (CPS).
The payments followed an unprecedented intervention by the Federal Government aimed at clearing outstanding pension liabilities.
Announcing the development at the “2025 Pension Revolution Summit – A 365 Days Scorecard,” PenCom Director-General, Ms. Omolola Oloworaran, outlined the reforms, payouts, and structural changes achieved by the Commission over the past year.
Oloworaran revealed that the Federal Government approved and released N758 billion to settle pension obligations, describing it as a historic milestone for Nigeria’s pension industry. “The funds were realised through the bond market and deployed to address pension increases, accrued rights, and other legacy obligations,” she said.
She added, “The National Pension Commission has paid out N362,742,954,000 to about 194,000 retirees from the N758 billion realised. The major tranche of N387 billion was earmarked for pension increases. Out of this, we have paid N362.74 billion, leaving a balance of about N24.7 billion, which is currently being processed.”
The payouts have had a wide impact across the public sector, with security personnel receiving a significant portion. A Commission director noted that 32 per cent of the N362 billion, amounting to N132 billion, went to the Nigeria Police.
Oloworaran further highlighted the ongoing rollout of the minimum pension guarantee, describing it as part of the Federal Government’s contribution toward ensuring retirees receive a basic, assured income.
The Commission also remitted N107 billion to cover the Federal Government’s outstanding 2.5 per cent pension contributions for the 2017–2021 period. “This payment went directly to 750,223 individual RSAs,” Oloworaran explained. She added that payments to university professors under approved pension enhancements are also being processed in batches.
The cumulative effect of these disbursements now stands at N577,264,960,890.43, credited directly to pension retirees and contributors nationwide.
Oloworaran described the intervention as a strong signal of the country’s commitment to its workforce. “The Presidential approval and release of N758 billion send a clear message that Nigeria honours its promises to workers and retirees,” she said.
On technological reforms, she said PenCom has automated several previously manual processes, including pension payroll certification, while upgrading benefit processing and contribution maintenance platforms through the COBRA system, which is now live and operational.
Oloworaran also highlighted the inauguration of the Board of Trustees for the Pension Healthcare Initiative (PENCARE), aimed at providing affordable healthcare to low-income retirees. “Retirement should be a season of peace, not anxiety over medical bills,” she said, thanking stakeholders for supporting the initiative.
Another major reform is the restructuring of the micro-pension plan into the Personal Pension Plan, designed to expand coverage for informal sector workers, including artisans, traders, gig workers, and creatives. She noted, “Onboarding under the Personal Pension Plan is simplified; you only need your name and a verifiable identity. Accredited pension agents serve not just as distribution channels but also as employment enablers.”
Oloworaran added that PenCom has deliberately raised capital requirements for pension operators to strengthen the industry. “This is purposeful, not punitive. Stronger capital means stronger institutions,” she said.
She also referenced a compliance circular issued in the second quarter of 2025, linking pension clearance certificates to participation in pension-related transactions. “Without a pension clearance certificate, you cannot do business with PFAs, custodians, or transact with major banks,” she explained.
The Federal Executive Council had earlier approved the issuance of the N758 billion fund in February 2025 to fully settle outstanding pension liabilities, including accrued pension rights, the Pension Protection Fund, and the university professors’ pension shortfall.
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