The Federal Government has approved a ₦758 billion bond to clear all outstanding pension arrears under the Contributory Pension Scheme (CPS) within the next three months.
Speaking at the end of the quarterly PenCom/operators consultative forum in Abuja, the Director General of the National Pension Commission (PenCom), Omolola Oloworaran, expressed confidence that the bond issuance and subsequent payments would be completed soon.
“By my estimation, I expect the bond to be issued and funds released within the next three months, though it could happen sooner,” she said.
This move follows an earlier announcement by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who revealed plans to raise ₦758 billion from the capital market to clear pension liabilities. Now, with official approval granted, Oloworaran confirmed that all outstanding payments would soon be disbursed to retirees through their Pension Fund Administrators (PFAs).
“With this approval, all backlogs and approved rights will now be settled, ensuring retirees receive their entitlements up to date,” she added.
She described President Bola Ahmed Tinubu’s intervention as a “new dawn for pensioners,” saying it fulfills the CPS’s core mandate of providing timely and adequate retirement benefits.
Under the approved plan, ₦253 billion has been earmarked to settle entitlements for retirees from Treasury-funded Ministries, Departments, and Agencies (MDAs), addressing delays caused by previous funding shortfalls. To prevent future backlogs, accrued pension rights will now be included in the monthly personnel cost general warrant for automatic and timely payments.
Additionally, ₦388 billion has been allocated to clear nearly two decades of unpaid pension increases affecting over 250,000 retirees, ensuring pensions remain fair and responsive to economic realities.
For the first time, the Federal Government will contribute ₦107 billion to the Pension Protection Fund (PPF), providing financial security for low-income retirees. Also, ₦11 billion has been set aside to fully implement the provision allowing eligible university professors to retire on full salary.
Oloworaran highlighted the broader economic impact of the bond issuance, noting that investments from Pension Fund Administrators (PFAs) and Nigerians would boost the capital market and yield healthy returns.
“The proceeds will flow into pension interventions, increase retirees’ purchasing power, and improve their overall well-being,” she said, dismissing concerns about the bond’s subscription, citing favorable economic conditions.
