The Federal Government of Nigeria has approved a bond issuance of ₦758 billion to settle outstanding pension liabilities, including pension increases owed to retirees since 2007. This development was announced by the National Pension Commission (PenCom) Director-General, Ms Omolola Oloworaran, at a sensitization workshop in Yola. The workshop, held in collaboration with the National Salaries, Incomes and Wages Commission (NSIWC), aims to educate employees and pensioners in the North-East region about the workings of the Contributory Pension Scheme (CPS).

According to Oloworaran, the bond approval is a significant step by President Bola Tinubu’s administration to alleviate the plight of vulnerable pensioners and restore confidence in the pension system. The PenCom Director-General highlighted other key interventions under the ongoing reforms, including pension increases for over 241,000 retirees, which accounts for 80% of those under the programmed withdrawal arrangement. These increases have raised monthly payments from ₦12.15 billion to ₦14.83 billion, effective from June 2025.

Additionally, the Commission has eliminated waiting times for pension payments, ensuring that retirees can access their benefits immediately after retirement, starting from July 2025. Furthermore, a framework has been developed to reintroduce gratuity for civil servants, in line with the Pension Reform Act (PRA) 2014. This initiative aims to enhance post-retirement benefits and improve the welfare of pensioners.

The sensitization workshop is part of efforts to address misconceptions and build public confidence in the CPS. It provides an opportunity for engagement, feedback, and trust-building with stakeholders. Speaking at the event, Mr Ekpo Nta, Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), emphasized the importance of pension in providing financial security in old age, reducing poverty, and avoiding dependence on families and government.

The current administration’s pension reforms have introduced significant changes in pension administration, ensuring prompt and sustainable payment of retirees’ benefits. The collaboration between PenCom and NSIWC has been commended by the Director-General of the National Orientation Agency (NOA), Malam Lanre Issa-Onilu, who noted that the reforms will strengthen stakeholders’ confidence in government policies. The workshop has reinforced the significance of the Contributory Pension Scheme and its benefits, highlighting the need for continued education and awareness to ensure a secure retirement for Nigerian workers.