The Federal Government has cleared all inherited pension liabilities dating back to 2007 through a N758bn intervention bond, providing long-awaited financial relief to 957,045 beneficiaries across the country.
The milestone was announced by the Director-General of the National Pension Commission, Ms Omolola Oloworaran, during her keynote address titled ‘From Reform to Reality: Renewed Hope, Pension Security for All Nigerians’ at the 2026 PenCom Media Conference in Lagos on Tuesday.
Addressing members of the press, industry leaders and media practitioners, Oloworaran emphasised that the payout marks a decisive end to decades of delayed benefits passed down across multiple political administrations.
She said, “The Federal Government cleared all inherited pension liabilities, some dating back to 2007. These obligations passed through multiple administrations, but this government chose to settle them. That is statesmanship, a debt paid, not just a promise.
“Every nation makes a promise to the people who build it—those who serve faithfully and diligently. When your working years are done, your country should not forget you. For too long, that promise was kept slowly, partially, or not at all. Today, I can report that this has changed—not in aspiration, but in fact.”
The landmark liquidation of legacy federal pension debts represents one element of a broader suite of institutional reforms implemented under President Bola Tinubu.
Alongside clearing the backlog, PenCom revealed that accrued pension rights for federal employees scheduled to retire up to December 2029 have already been credited directly to their Retirement Savings Accounts ahead of time following a comprehensive one-time verification and enrolment drive.
To prevent future backlogs, the commission introduced a Zero Waiting Time Policy to align retirement payouts with monthly public service salary cycles, ensuring workers transition seamlessly into retirement without financial gaps. Benefit processing turnaround times have also dropped from up to 21 months to 48 hours.
Addressing efforts to expand pension awareness and outreach, Oloworaran noted, “PFAs, I believe, understand the need for awareness. And there’s a plan; as part of the initiatives being worked on by the Pension Industry Council, we do have a stakeholder management and advocacy committee. And they’ve come up with a calendar of activities in terms of how to engage Nigerians and ensure pension literacy as well as pension awareness.
“If you listened earlier on, part of what will also be happening during the Pension Week is also awareness, adequacy, state visits, and engagement. I know that we need to do a whole lot around that, and the pension industry is working to ensure that they can reach, if not every Nigerian, at least most Nigerians. So, work is ongoing in that regard. We do have a lot to do, and we recognise that, both at the industry level and also in PenCom as well.”
On replicating federal pension successes across state governments, she added, “We are engaging states. We are engaging states on various levels. Number one: get onboarded onto the Contributory Pension Scheme.
“And then, number two: the conversation we are having with people who are now part of the scheme is the question of adequacy, on how we can benchmark what is being paid to retirees so that, you know, when we have inflation, there can be a balance. So, we want to see increments that match inflation or at least compensate for inflation. So, we are having two conversations, like I said: one, get onto the CPS; and two, on adequacy.”
The conference also highlighted significant financial boosts across existing pension schemes, most notably a directive invoking statutory provisions to review payments for retirees of the defunct Nigeria Social Insurance Trust Fund. The 21-year review delivered an average payout increase of 1,173 per cent for 2,116 NSITF retirees, alongside the settlement of N8.7bn in full arrears.
Additionally, the execution of Pension Boost 1.0 elevated monthly disbursements across the Contributory Pension Scheme from N12.15bn to N14.83bn, directly increasing monthly payouts for more than 241,000 retirees nationwide.
Reinforcing the government’s stance on worker welfare, Oloworaran observed that the true measure of how a government values its workforce lies not only in how it treats its employees while in service, but in how faithfully it fulfils its pension obligations after retirement.
The commission also unveiled upcoming welfare initiatives, including the PenCare free healthcare support programme set to pilot with 30,000 low-income retirees, the activation of a statutory Minimum Pension Guarantee baseline, and an expansion of the Micro Pension Plan to cover informal sector traders and artisans through a nationwide agent network.
Complementing the commission’s vision, the Director of the Personal Pension Plans Department at PenCom, Dr Babatunde Alayande, delivered a presentation titled ‘Expanding Pension Coverage to the Self-employed and Informal Sector Workers: The Journey So Far’.
Highlighting the critical need for inclusion, Alayande revealed that 93 per cent of the Nigerian workforce, representing roughly 84.92 million workers, operates within the informal sector.
Despite contributing 58 to 65 per cent of the country’s GDP, fewer than three in every thousand informal workers are currently covered by a pension, with only 242,690 enrolled in the Personal Pension Plan as of July 2026, leaving a total coverage gap of 99.71 per cent. He noted that women are disproportionately affected by this gap, given that 96 per cent of employed women work in the informal sector.
Detailing the core mechanics of the scheme established under Section 2(3) of the Pension Reform Act 2014, Alayande emphasised that the Personal Pension Plan is built to offer flexible retirement savings for self-employed individuals, traders, artisans, farmers, gig workers, formal sector employees, foreign contributors, and minors through voluntary parental registration.
“The plan allows flexible daily, weekly, or monthly contributions via USSD, mobile money, or direct bank transfers, requiring minimal onboarding documentation of just a phone number and a National Identification Number. Contributions are split equally into a 50 per cent contingent portion, withdrawable three months after the initial deposit and once every two months thereafter, and a 50 per cent retirement benefits portion accessible at age 50 or upon medical incapacitation”, Alayande said.
To expand outreach across underserved regions, PenCom accredited six Accredited Pension Agents (APAs) in 2026, including Awabah Remit Services Limited, e-Tranzact International Limited, NextAutomate APA Limited, SunTrust Bank Nigeria Limited, PrimeTrust APA Limited, and Majestic APA Limited, to support onboarding and transaction processing.
Highlighting the fundamental hurdle facing the scheme, Alayande noted, “Access does not automatically lead to active saving”.
He cautioned against relying on enrolment figures alone, stating, “Registrations are not the measure of success”. He explained that persistent saving faces persistent barriers, emphasising, “Confidence in long-horizon institutions is not automatic and must be earned”.
Outlining the strategic framework required to drive sustainable coverage, Alayande observed, “Each stage can fail independently. A registered account that never receives a second contribution adds nothing to retirement security”. To address these challenges, PenCom is driving targeted inclusion strategies centred on multilingual awareness, simplified digital onboarding, tailored gender-sensitive and Sharia-compliant products, and strategic partnerships with development entities.
Commending the leadership of the Commission, the Chairperson of the Nigerian Association of Insurance and Pension Editors, Ebere Nwoji, praised Oloworaran’s performance and commitment to retirees, stating: “You have done this by your determination, zeal, and your decision to roll up your sleeves and do the job that you are appointed to do.
“And in doing this, you have, I must say in my own assessment, you have sincerely displayed a high sense of intellectual prowess and understanding of the financial sector. And your passion and love for the pensioners in Nigeria, by the way you handled the affairs of the National Pension Commission.”
Endorsing the reform outcomes, representative of the Nigeria Labour Congress, Iwa Iko, shared his personal experience as a beneficiary and pioneer of the system: “I can say that I’m the face of the Contributory Pension Scheme, because I was a member of the Chief Fola Adeola Committee that put up the architecture for modern-day pension reforms in Nigeria, and also put forward the draft of what became the Pension Reform Act 2004.
“And I retired as a Director in the Federal Public Service under the Contributory Pension Scheme. So, all that the DG was saying is that I will stand with her anywhere to debate with anybody.”
Affirming the real-world impact of the recent pension reviews, Iko added, “Because I have also been receiving alerts of N32,000. And when the review took place, I showed my wife the first alert we got as a result of the review of the pensions of CPS retirees.”
