The administration of President Bola Ahmed Tinubu has made a significant move to address the long-standing issue of pension arrears in Nigeria. According to the Director-General of the National Pension Commission (PenCom), Mrs. Omolola Oloworaran, the government has paid N758 billion to clear pension arrears dating back to 2007. This move has been hailed as a major turning point in the country's pension history, as it settles obligations that had remained unresolved across successive administrations.
The payment of N758 billion has benefited 957,045 Nigerians, who are now receiving their pension benefits. Oloworaran described President Tinubu as the most pro-worker and pro-retiree President in the history of Nigeria, citing several steps approved by the President to clear inherited liabilities and ensure prompt payment of emerging obligations. She noted that the administration's record was particularly significant because it had confronted pension obligations that had remained unresolved across successive administrations.
The Director-General of PenCom highlighted that the settlement was part of a broader effort to ensure that workers who had completed their years of service did not continue to wait indefinitely for benefits already due to them. She said approved pension rights were now being paid as and when due, and in many cases ahead of time. Following a one-time verification and enrolment exercise, approved pension rights had been credited into the Retirement Savings Accounts (RSAs) of enrolled Federal Government employees due to retire up to December 2029.
Oloworaran also disclosed that the commission had introduced a zero-waiting-time policy, designed to end the long gap between retirement and the commencement of pension payments. She said retirement benefits that previously took as long as 21 months to process and approve for Federal Government workers were now being approved within 48 hours. The development was intended to ensure that workers moved from active service into retirement without being subjected to prolonged financial uncertainty.
The administration has also increased monthly pensions for retirees under the Contributory Pension Scheme (CPS). Oloworaran said Pension Boost 1.0 raised the monthly pensions of more than 241,000 retirees, while aggregate monthly pension payments increased from N12.15 billion to N14.83 billion. She noted that the pension boost was particularly significant because the increase went directly to retirees who depended on their monthly pensions to meet their basic needs.
Furthermore, Oloworaran drew attention to the review of pensions of retirees of the defunct Nigeria Social Insurance Trust Fund (NSITF). She noted that for the first time in 21 years, the pensions of the affected retirees were reviewed, after having remained unchanged since 2005. The review produced an average increase of 1,173 per cent, while the combined monthly pensions of the affected retirees rose from N12.6 million to N159.95 million. The Federal Government also paid N8.7 billion in arrears to the affected pensioners.
Oloworaran emphasized that the administration's intervention was not only about clearing old debts but also about changing the experience of workers approaching retirement. She disclosed that, effective January 1, 2026, eligible employees of treasury-funded MDAs with at least 10 years of qualifying service would receive an additional exit benefit equivalent to 100 per cent of their total emolument, in addition to their normal pension benefits. The pension sector is also moving towards providing greater protection for low-income retirees through a retiree healthcare programme and the Minimum Pension Guarantee.
Key points
- President Tinubu's administration has paid N758 billion to clear pension arrears dating back to 2007, benefiting 957,045 Nigerians.
- The administration has introduced a zero-waiting-time policy, approving retirement benefits within 48 hours.
- The pension sector is moving towards providing greater protection for low-income retirees through a retiree healthcare programme and the Minimum Pension Guarantee.
