FG Clears N758bn Pension Backlog Dating to 2007, 957,045 Beneficiaries Affected

The Federal Government has cleared inherited pension liabilities dating back to 2007 through a N758 billion intervention bond, providing financial relief to 957,045 beneficiaries across Nigeria.

The Director-General of the National Pension Commission, Omolola Oloworaran, disclosed the development during the 2026 PenCom Media Conference in Lagos. She said the settlement marked the clearance of pension obligations inherited across successive administrations.

Oloworaran said the government had also credited accrued pension rights for federal employees scheduled to retire up to December 2029 directly into their Retirement Savings Accounts. The exercise followed a one-time verification and enrolment programme aimed at reducing delays in processing retirement benefits.

PenCom has also introduced a Zero Waiting Time Policy designed to align pension payments with monthly public service salary cycles. According to the commission, benefit processing times have been reduced significantly, from as long as 21 months to about 48 hours.

The conference also highlighted changes affecting existing pension schemes. A 21-year review of payments to retirees of the defunct Nigeria Social Insurance Trust Fund resulted in an average 1,173 per cent increase for 2,116 retirees, alongside the payment of N8.7 billion in arrears.

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. PenCom said the adjustment directly increased monthly benefits for more than 241,000 retirees.

The commission also announced plans for a PenCare free healthcare programme targeting 30,000 low-income retirees, as well as the activation of a statutory Minimum Pension Guarantee and expansion of the Micro Pension Plan to informal-sector workers.

PenCom said the expansion is particularly important because about 93 per cent of Nigeria’s workforce operates in the informal sector. As of July 2026, only 242,690 people were enrolled in the Personal Pension Plan, leaving a significant gap in pension coverage among traders, artisans, farmers, gig workers and other self-employed Nigerians.