Pensioners to Receive Backlog Payments Within Three Months
…FG Approves N758bn Bond
By Patience Ikpeme
Long-suffering pensioners under the Contributory Pension Scheme (CPS) are set to receive backlogs of their pensions within the next three months, following the Federal Government’s approval of a N758 billion bond to settle all outstanding pension liabilities.
This revelation was made by Omolola Oloworaran, Director General of the National Pension Commission (PenCom), at the end of the Quarterly PenCom/Operators Consultative Forum in Abuja on Thursday.
Oloworaran disclosed, “By my estimation, I’m hoping that within now and the next three months, we will have issued a bond and funds will be released. But I expect it to happen sooner than later.”
Addressing the approval for the N758 billion bond, Oloworaran stated, “With this approval, and the expected bond issuance that should happen very soon, all approved rights, payments, all backlogs will now be made to the respective PFA, and they will be able to pay payments to all retirees up to date, actually. The bonds will be issued and funds will be released.”
She emphasized that President Bola Ahmed Tinubu’s intervention signals a “new dawn for pensioners,” ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits. The bond, when fully subscribed, will resolve all accumulated pension liabilities.
The allocation of the N758 billion bond includes: N253 billion to settle outstanding entitlements for retirees of FGN Treasury-funded MDAs, addressing delays caused by previous funding shortfalls. Accrued pension rights will now be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.
There is N388 billion to clear pension increases that have remained unpaid for nearly two decades, benefiting over 250,000 retirees. N107 billion as the FGN’s first-time contribution to the Pension Protection Fund (PPF), ensuring a living wage for pensioners, particularly low-income earners and another N11 billion to fully implement the provision allowing eligible university professors to retire on their full salary, addressing previous funding gaps.
Oloworaran detailed the two-fold impact of the bond issuance: “Number one, the appropriate bond issuance that PFAs will invest in, that can help both corporations in the capital markets. The proceeds from the bond issuance, which, I say PFAs will invest, PFAs and Nigerians will be able to invest in it. And, in addition to that, we all know that interest rates are higher, so you get healthy returns from your investors.”
She further explained, “And then, two, the funds received from these bonds will then go into the various intervention, from pension increases to pension protection funds to professional entitlement and also have good rights. Once these funds are paid, it’ puts money in the hands of ordinary Nigerians. And it will increase the purchasing power of ordinary Nigerians who are retired, who are living on minimum pension, whose pensions cannot support them.”
She also addressed the potential for undersubscription, expressing confidence in the bond’s success due to favorable interest rates. “I don’t know why it should be under subscribed. Every bond that the CBN has been issuing has not been under subscribe, because interest rates are good. So, if there’s anybody who is doubting and saying, why should I invest in this? I mean, the interest rates are the best you can have them ever.”
Oloworaran emphasized that the current monetary policy environment is conducive to full subscription. “I am not afraid of this bond. We are not at the period of time, 24 months ago, when we were on the unorthodox monarchy equality. So, the CBN is currently running on orthodox monetary policy and I expect the bond to be fully subscribed.”
She reiterated that “With this bold step, President Tinubu has set a new standard for pension administration in Nigeria, effectively resetting the CPS on the path to sustainability.”
The PenCom DG stressed the importance of strategic collaboration to ensure seamless implementation and timely disbursement of payments, prioritizing efficiency, transparency, and accountability.
“This resolution of pension liabilities will restore confidence in the CPS and positions the pension industry for long-term growth. Beyond immediate payments to retirees, it will stimulate the economy, deepen the capital market, and enhance overall financial stability,” she concluded. “With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimizing investment returns. A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can save securely for their future.”
