Tinubu Approves ₦758bn Bond To Clear 18-Year Pension Arrears

According to Ireporter Online, President Bola Ahmed Tinubu has approved the issuance of ₦758 billion in Federal Government of Nigeria (FGN) bonds to settle long-standing pension liabilities, including arrears of pension increases dating back to 2007.

The disclosure was made by the Director-General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, during a workshop on the workings of the Contributory Pension Scheme (CPS) for employers and pension desk officers in Abuja. Represented by Mr. Usman Musa, Director of the Contribution and Bond Redemption Department, she highlighted that more than 10 million Nigerians, including public sector employees, private sector workers, artisans, and self-employed individuals under the Micro Pension Plan, are beneficiaries of the CPS.

Oloworaran revealed that pension assets have now exceeded ₦25 trillion, contributing significantly to national development through strategic investments. She added that the scheme guarantees monthly pensions for over 552,000 retirees and lump-sum payments for an additional 291,735 retirees — bringing the total number of retirees benefiting from the scheme to over 844,000 across both public and private sectors.

“In line with our mandate to safeguard contributors and ensure dignity in retirement, PenCom has introduced several transformative initiatives,” she stated. Among these is Pension Boost 1.0, which enhanced the benefits of over 241,000 retirees—representing 80% of those under the Programmed Withdrawal scheme. Monthly pension payouts, she noted, have risen from ₦12.157 billion to ₦14.837 billion, effective June 2025.

The DG also disclosed that as of July 2025, there is now zero waiting time for pension payments, meaning retirees can immediately access their benefits once due. This development aligns with the federal government’s monthly salary release schedule through the Ministry of Finance.

Furthermore, she announced that plans are underway to reintroduce gratuity payments for federal civil servants. A framework has been developed by the Office of the Head of the Civil Service to restore gratuity benefits under the CPS, in compliance with Section 4(4) of the Pension Reform Act (PRA) 2014.