PenCom Releases N577bn to Retirees
…Unveils Healthcare and Minimum Pension Initiatives
By Patience Ikpeme
The National Pension Commission (PenCom) has announced the disbursement of over half a trillion Naira to pension retirees and contributors in a landmark financial year, a move the agency says is critical to preserving the dignity of senior citizens.
During her address to journalists at the ‘2025 Pension Revolution Summit – A 365 Days Scorecard,’ PenCom Director General, Ms. Omolola Oloworaran, revealed that the total payout to beneficiaries has reached N577,264,960,890.43, directly impacting over 1.053 million Retirement Savings Accounts (RSAs).
The majority of the year’s disbursements stem from the Presidential approval and release of N758 billion to settle outstanding pension liabilities. Ms. Oloworaran described this as an “unprecedented intervention [that] set a clear and powerful signal that Nigeria honors its promises to its workers and retirees.”
From the total funds realized from the bond market, N362,742,954,000 has been paid out to 194,000 retirees. Ms. Oloworaran specified that the main segment of this payment involved N387 billion dedicated to pension increases.
“Out of this amount, we have paid out 362,742,954,000 to 194,000 retirees, leaving a balance of about 24.7 which we are processing,” the Director General disclosed.
Furthermore, a significant portion of the total paid was directed towards the police. A Director of the Commission stated, “Out of the 354 billion we’ve paid out, 32% of it N132 billion was paid out to the police.”
PenCom also settled historical federal government commitments, remitting N107 billion for the 2.5% pension contributions that were not made for five years, from 2017 to 2021. This money, she said, went directly to the accounts of 750,223 RSA holders. Payments for professors are also being made in batches.
Looking ahead, the Commission is introducing the Minimum Pension Guarantee to ensure a baseline payment for all qualified retirees. Ms. Oloworaran clarified, “This is just a share of the federal government in paying the subvention for the minimum pension guarantee.”
In a major move to improve the lives of retirees, PenCom inaugurated the Board of Trustees of the Pension Healthcare Initiative (PENCARE). This landmark intervention aims to provide affordable and accessible healthcare for low-income retirees.
The Director General articulated the philosophy behind the initiative: “Retirement should be a reason of peace, and a season of peace as well, not a period defined by anxiety over medical bills. So a special thank you to the industry for partnering with PENCARE to try and bring this to life.”
The Commission also detailed sweeping technological and regulatory changes. The manual process for the pension payroll certificate is now automated, with significant upgrades to the system promised soon. The benefit processing and contribution maintenance platform, known as COBRA, is also live and operational.
In a move to increase retirement benefits immediately, the Pension Post 1.0 scheme was introduced earlier in the year, which has already injected N2.6 billion into monthly pension payments for Contributory Pension Scheme (CPS) retirees since June. “These are not just numbers. They are meals on tables, medicine bought, debts settled, and dignity preserved,” Ms. Oloworaran commented.
PenCom also restructured the micro-pension plan into the Personal Pension Plan, simplifying enrollment for the informal sector, including artisans, traders, and gig workers. This strategy involves the use of accredited pension agents, with one agent, Awabah, already approved in principle. The D-G sees this as an employment strategy that will recruit and train thousands of young Nigerians, “enabling financial inclusion that creates jobs.”
PenCom took a deliberate step to raise the capital requirement for pension operators. Ms. Oloworaran stated that this was “not punitive, it was purposeful. Stronger capital means stronger institutions.”
She added that the Commission also strengthened governance regulations to eliminate “shadow directorship,” stating that “pensions cannot be managed from the shadows. Transparency, accountability, and fit and proper leadership are not negotiable.”
The most potent tool for compliance was a decisive circular issued in the second quarter of the year, linking the Pension Clearance Certificate (PCC) to participation in the pension value chain. This means that companies cannot conduct business with Pension Fund Administrators (PFAs), Custodians, or the major banks—known as FUGAZ (First Bank, UBA, GTBank, Access Bank, and Zenith Bank)—without a valid PCC.
The impact was immediate and dramatic: total pension recoveries from January to November reached N4.04 billion, an increase of 180 percent compared to the N1.44 billion recovered for the whole of 2024. Most notably, N2.06 billion was recovered in the third quarter of 2025 alone.
Ms. Oloworaran revealed a similar shift in compliance behaviour, noting that following the circular’s issuance, the value of pension certificates issued in Q3 surged to N233 billion, the highest seen in any quarter since the process began.
This, she concluded, “clearly demonstrates that when compliance is tied to real economic consequences, behavior changes.”
