FG clears N758bn pension backlog, secures payments for retirees through 2029

The Federal Government has cleared N758 billion in inherited pension liabilities, with pension payments for some federal retirees now secured through December 2029.

The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed this on Tuesday at the 2026 PenCom Media Conference in Lagos.

According to Oloworaran, the intervention has benefited 957,045 Nigerians and helped address pension obligations accumulated from previous administrations.

She explained that the government inherited about 21 months of unpaid accrued pension rights. However, the payment programme has now moved beyond the outstanding liabilities, with some beneficiaries covered up to December 2029.

The N758 billion payment was made through the Federal Government Pension Bond, which was used to settle pension obligations dating back to 2007.

Oloworaran said the development represents an important shift in the management of pension liabilities, particularly for retirees who had completed their years of service but were forced to wait for benefits they had already earned.

She stressed that retirement should not expose workers to prolonged uncertainty over when their pension benefits would be paid.

Pension assets rise to N31.48 trillion

PenCom also reported significant growth in Nigeria’s pension assets over the past two years.

According to Oloworaran, pension assets increased from N20.79 trillion in July 2024 to N31.48 trillion in July 2026.

That represents an increase of more than N10.7 trillion, or approximately 51 per cent, during the period.

The growth was accompanied by an increase in the number of people participating in the Contributory Pension Scheme.

PenCom said 938,229 new contributors joined the scheme between July 2024 and July 2026.

As a result, the total number of contributors increased from approximately 10.42 million to 11.32 million.

Oloworaran attributed the growth to increased participation, improved contributor confidence and investment returns.

She added that PenCom was focused on ensuring pension funds were invested productively while protecting the long-term interests of contributors.

Pension funds targeted for infrastructure investment

The pension industry is also preparing to invest $250 million in infrastructure through a new Pension Industry Infrastructure Investment Consortium.

Under the proposed arrangement, pension fund operators are expected to provide $200 million as anchor investors through cash calls over a 10-year period.

Another $50 million is expected to come from development finance institutions.

Oloworaran said the initiative had received backing from the Pension Industry Leadership Council and would be implemented in phases.

The goal is to use long-term pension savings to support productive infrastructure projects while maintaining safeguards around investment decisions.

PenCom said strict project-selection and investment requirements would be applied to protect pension contributors.

PenCom recovers N36.6bn from defaulting employers

The pension regulator is also increasing its enforcement against employers who deduct pension contributions from workers’ salaries but fail to remit the money into their Retirement Savings Accounts.

Olowararan disclosed that PenCom’s cumulative recovery from defaulting employers had reached N36.6 billion as of July 2026.

She described the failure to remit deducted pension contributions as both a legal violation and a breach of trust between employers and their workers.

According to her, pension deductions are deferred income belonging to employees and should not be treated as ordinary company funds.

PenCom has therefore warned employers that it will continue to pursue outstanding pension contributions and enforce compliance with the pension system.

Informal workers to get wider pension access

The commission is also expanding pension coverage among workers in Nigeria’s informal sector.

PenCom plans to use accredited pension agents to reach workers in markets, motor parks, farms, workshops and other informal workplaces.

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The initiative is designed to make pension participation more accessible to Nigerians who do not work under conventional employer-employee arrangements.

Oloworaran said PenCom would continue working with state governments and private-sector employers to increase pension coverage.

The objective is to encourage more Nigerians to build retirement savings before leaving the workforce.

PenCom introduces 48-hour retirement benefit approval

Another major development highlighted by the commission is the reduction in the time required to process retirement benefits.

PenCom said retirement benefit approvals that previously took as long as 21 months have now been reduced to a new 48-hour approval timeline under its Zero Waiting Time policy.

All Pension Fund Administrators have reportedly been directed to comply with the new timeline.

The commission said the measure is intended to reduce delays and ensure retirees receive their benefits more quickly after completing the required processes.

For pension contributors and retirees, the reforms could represent a significant improvement in the administration of retirement benefits, particularly if the new timelines are consistently maintained across the pension industry.