The Director General of Nigeria's National Pension Commission (PenCom), Ms Omolola Oloworara, announced that the agency has created an additional N10.7 trillion in retirement wealth over the last two years. This significant growth was made possible by various reforms implemented in the pension sector. The reforms have led to substantial increases in retirees' take-home benefits, particularly for those under the treasury-funded pension scheme and the National Social Insurance Trust scheme.
According to Oloworara, the reforms have resulted in a 1,173 per cent increase in take-home benefits for 2,116 retirees, relieving them from 21 years of stagnation in pension benefits. This move aims to improve the livelihoods of retirees in Nigeria. Furthermore, 938,229 Nigerians joined the Contributory Pension Scheme (CPS) within the same period, expanding the pool of formal retirement savings in the country.
The implementation of pension adjustments has also led to an increase in monthly pension payments for over 241,000 retirees, from N12.15 billion to N14.83 billion. This adjustment is part of the ongoing reforms in the pension sector, aimed at enhancing the benefits of retirees. The growth in the industry is a result of the efforts of PenCom to ensure a more efficient and effective pension system.
Oloworara disclosed that Treasury-funded Ministries, Departments and Agencies (MDAs) now have an exit benefit scheme, which took effect from January 1, 2026. Under this scheme, eligible employees with at least 10 years of qualifying service receive an additional benefit equivalent to 100 per cent of their total emolument, on top of their normal pension benefits. This move demonstrates the government's commitment to workers and retirees.
The first 175 retirees have already received approximately N1.1 billion under the exit benefit scheme, which is a full year's pay as an additional benefit. This development is a significant step towards improving the welfare of retirees in Nigeria. The scheme is expected to benefit many more retirees in the coming years.
Oloworara emphasized that the pension sector reforms have also led to a zero-tolerance policy towards delayed pension payments. As a result, the time required to process retirement benefits has been significantly reduced. Retirement benefits that previously took as long as 21 months to approve are now processed within 48 hours for eligible Federal Government workers.
Additionally, private-sector retirement benefits, which previously took at least two weeks to approve, are now being processed within 48 hours. This improvement in efficiency is a result of the reforms implemented by PenCom, aimed at ensuring timely and effective payment of retirement benefits to Nigerians.
Key points
- The National Pension Commission (PenCom) has created an additional N10.7 trillion in retirement wealth over the last two years.
- The pension sector reforms have led to significant increases in retirees' take-home benefits and improved efficiency in processing retirement benefits.
- The exit benefit scheme for Treasury-funded MDAs has been introduced, providing an additional benefit to eligible employees.
