The Federal Government has settled inherited pension liabilities dating back to 2007 through a “N758bn intervention bond”, bringing financial relief to 957,045 beneficiaries nationwide.
The development was disclosed by the Director-General of the National Pension Commission (PenCom), 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.
Speaking to journalists, industry stakeholders and media practitioners, Oloworaran said the payment represented a major step towards ending years of delayed pension benefits inherited across successive 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.”
She added, “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 actual fact.”
The settlement of the outstanding federal pension obligations forms part of a broader package of institutional reforms implemented under President Bola Tinubu.
PenCom also disclosed that accrued pension rights for federal workers expected to retire by December 2029 have already been credited to their Retirement Savings Accounts ahead of schedule, following a one-time verification and enrolment exercise.
To prevent a fresh accumulation of pension backlogs, the commission introduced a Zero Waiting Time Policy, which is designed to synchronise retirement benefit payments with monthly public service salary cycles. The policy aims to ensure workers move into retirement without financial interruptions.
Meanwhile, the time required to process pension benefits has been reduced significantly, from as long as 21 months to just 48 hours.
The conference also highlighted increased payments under existing pension schemes. A statutory review of benefits for retirees of the defunct Nigeria Social Insurance Trust Fund (NSITF) resulted in an average 1,173 per cent increase for 2,116 retirees, alongside the payment of N8.7bn in outstanding arrears.
Under Pension Boost 1.0, monthly payments through the Contributory Pension Scheme also increased from N12.15bn to ₦14.83bn, benefiting more than 241,000 retirees across the country.
Oloworaran said the true test of a government’s commitment to its workforce goes beyond how employees are treated while in service, stressing that its fulfilment of pension obligations after retirement is equally important.
PenCom further announced plans for additional welfare programmes, including the PenCare free healthcare initiative, which will initially target 30,000 low-income retirees. Other measures include the activation of a statutory Minimum Pension Guarantee and the expansion of the Micro Pension Plan to informal-sector traders and artisans through a nationwide agent network.
