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Pension Payday: FG Pays Historic N1.2trn Arrears, Boosts Retirees’ Packages
The federal government has disbursed approximately N1.2 trillion to clear outstanding pension arrears owed to retired federal civil servants nationwide.....KINDLY READ THE FULL STORY HERE▶
The federal government has disbursed approximately N1.2 trillion in accrued pension arrears to retired federal civil servants from the inception of the Contributory Pension Scheme (CPS) in 2004 up to the first quarter of 2025, ensuring retirees now receive their monthly pensions as and when due.
Previously, many retirees under the CPS were unable to access their Retirement Savings Accounts (RSAs) due to unpaid accrued rights — a prerequisite for drawing monthly pensions. This delay denied retirees access to their pension benefits, even though they had savings in their RSAs.
However, in a determined push over the past two years, the federal government has paid over N700 billion in arrears and has now cleared the backlog up to March 2025, leaving only April and May pending. To further address outstanding obligations, the government has floated N750 billion in pension bonds aimed at clearing the remaining backlog.
Simultaneously, the National Pension Commission (PenCom) is set to launch a ‘Pension Boost’ initiative in June. Under this program, around 223,000 retirees will see increases in their RSA balances, resulting in a rise in monthly pension disbursements from N8.2 billion to N11.2 billion.
Speaking during the 2nd Quarter PenCom Press Conference in Ikeja, Lagos, PenCom Director General Ms. Omolola Oloworaran reaffirmed the commission’s commitment to offsetting the remaining arrears and restoring trust in the pension system. She emphasized that the N750 billion pension bond, initiated by President Bola Tinubu’s administration, plays a vital role in achieving this.
Only retirees under the Programmed Withdrawal plan will benefit from the Pension Boost, which is funded through investment returns on pension assets.
Warning non-compliant employers, Ms. Oloworaran noted that PenCom is partnering with key stakeholders to ensure defaulting firms — especially those without pension plans for employees — are disqualified from participating in government contracts or private sector projects.
She also noted active collaboration with state governments to boost compliance at sub-national levels.
Meanwhile, PenCom’s Head of Surveillance, Mr. Abdulrahman Muhammad (A.M. Saleem), revealed that pension fund assets rose by N820 billion in Q1 2025, climbing from N22.51 trillion in December 2024 to N23.33 trillion by March 31, 2025.
He added that between 2004 and Q1 2025, about 538,237 jobless workers under the CPS accessed N294.40 billion, permitted under law as 25% withdrawals from their RSAs during unemployment.
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