The Director-Normal of the Nationwide Pension Fee (PenCom), Omolola Oloworaran, has acknowledged that the authorised N758 billion Federal Authorities of Nigeria (FGN) bond will probably be launched inside three months to totally settle excellent pension liabilities below the Contributory Pension Scheme (CPS).
Oloworaran made this identified on Thursday throughout the PenCom Press Convention, attended by Nairametrics.
Recall that the Federal Govt Council (FEC) had, on February 5, 2025, authorised the issuance of a N758 billion bond to settle excellent pension liabilities for federal pensioners.
The Minister of Finance and Coordinating Minister of the Economic system, Wale Edun, had disclosed to the press that the approval would permit the Debt Administration Workplace (DMO) to lift the funds wanted to settle long-standing pension arrears.
Landmark Improvement for Pensioners
- She stated the authorised bond, sanctioned by President Bola Ahmed Tinubu, marks a defining milestone within the nation’s pension administration and a brand new daybreak for pensioners, guaranteeing that the CPS fulfills its core mandate of offering well timed and sufficient retirement advantages.
- She added that this landmark bond resolves all accrued pension liabilities, masking Accrued Pension Rights, Pension Will increase Since 2007, the Pension Safety Fund (PPF), and College Professors’ Pension Shortfall.
“N253 billion has been allotted to settle excellent entitlements for retirees of FGN Treasury-funded MDAs, addressing the delays attributable to earlier funding shortfalls. Going ahead, accrued pension rights will probably be included within the month-to-month personnel price basic warrant, guaranteeing automated and well timed funds.
“N388 billion has been supplied to clear pension will increase which have remained unpaid for practically 20 years. This long-overdue entitlement, benefiting over 250,000 retirees, displays the administration’s dedication to making sure pensions stay truthful and attentive to financial realities.
“For the primary time, the FGN is contributing N107 billion to the PPF, guaranteeing that pensioners—significantly low-income earners—obtain a dwelling wage in retirement. It is a main step in the direction of strengthening monetary safety for all retirees below the CPS.
“N11 billion has been allotted to totally implement the supply permitting eligible college professors to retire on their full wage, addressing the funding gaps that beforehand hindered its execution,” she stated.
Nonetheless, she defined that the FEC approval doesn’t suggest that funds have already been launched.
“No, it doesn’t. That is simply an approval, but it surely’s a big step. It means we’ve got approval; the bonds will probably be issued, and funds will probably be launched.
“And by my estimation, I’m hoping that inside the subsequent three months, we should always have the bond issued, and funds will probably be launched. However I count on it to occur sooner fairly than later,” she stated.
- She confused that with this approval and the anticipated bond issuance, all accrued rights funds and backlogs will now be made to the respective Pension Fund Directors (PFAs), and so they could make well timed funds to all retirees.
Extra Insights
- She assured that PenCom will proceed working carefully with all stakeholders to make sure the seamless issuance of the bond and the well timed disbursement of pension funds.
- Nonetheless, she added that attaining full implementation requires strategic collaboration amongst stakeholders.
The PenCom boss stated that with the burden of excellent liabilities set to be lifted, the pension business will now concentrate on innovation, improved service supply, and optimizing funding returns.
“Past rapid funds to retirees, it’ll stimulate the economic system, deepen the capital market, and improve general monetary stability,” she added.
She additionally talked about {that a} renewed emphasis could be positioned on increasing the Micro Pension Plan, guaranteeing that Nigerians within the casual sector can save securely for his or her future.
She expressed appreciation to President Bola Ahmed Tinubu and the Finance Minister for his or her unwavering dedication to pension reform by means of the historic N758 billion bond approval.
What You Ought to Know
- In 2004, the Federal Authorities of Nigeria enacted the Pensions Reform Act (PRA 2004), which launched the Contributory Pension Scheme (CPS).
- The Act made it obligatory for employers and workers in each the private and non-private sectors to contribute in the direction of the retirement advantages of workers.
- Since then, pension administration in Nigeria has confronted challenges corresponding to insufficient funding, poor administration, low protection, lack of expertise, and a weak regulatory framework.
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