FG releases N12.3bn for retirees, clears pension backlog until 2029

The Federal Government has released N12.3bn for additional exit benefits to eligible retirees, as pension authorities seek to improve retirement payments and address longstanding concerns over workers’ welfare.

The National Pension Commission also disclosed that the government had cleared the accrued pension rights of enrolled federal workers up to December 2029, moving from a 21-month funding backlog to a 41-month surplus.

PenCom Director-General, Omolola Oloworaran, disclosed this on Wednesday at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja.

Represented by the commission’s Head of Corporate Communications, Ibrahim Buwai, Oloworaran said the funding position meant that accrued pension rights for enrolled federal employees yet to retire had been paid in advance.

“We are moving from a position where our full pension rights were 21 months in arrears, to where we are today, 41 months in surplus,” she said.

She added that the government had also approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective January 1, 2026.

“The Federal Government has just approved the payment of 100 per cent of terminal emoluments as additional exit benefits,” Oloworaran said, adding that eligible retirees who submitted their documents had received payments.

The National President of the Nigeria Union of Pensioners, Godwin Abumisi, however, called for the extension of the new exit benefits to people who retired between 2004 and December 2025.

Abumisi, represented by Ahmad Ibrahim-Gazali, disclosed that N12.3bn had been released for the programme.

Oloworaran also said delays in processing retirement benefits had largely been eliminated, with payments now made within 48 hours of retirement.

“The issue of delays of payment of pension has now become history, and now pensions are being paid within a maximum of 48 hours from retirement,” she said.

She highlighted the launch of the PenCare health insurance programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.

According to her, PenCare, funded by pension operators and PenCom, is designed to reduce retirees’ healthcare expenses and enable them to spend more of their monthly pensions on other needs.

She said the minimum pension guarantee would raise the payments of eligible retirees receiving less than N52,500, adding that some beneficiaries received payment alerts during the launch.

Meanwhile, the Executive Secretary of the Pension Transitional Arrangement Directorate, Tolulope Odunaiya, said the agency had introduced remote verification and improved life-status checks for pensioners under the Defined Benefits Scheme.

Odunaiya, represented by the Head of Corporate Communications, Olugbenga Ajayi, said the initiative would allow pensioners to complete verification from different locations, including outside Nigeria.

“With the new initiative of this verification without borders, pensioners in the US, in Uganda, in our villages can as well do their verification,” she said.

She added that registration had begun for PTAD’s proposed health insurance programme ahead of its formal launch.

The Chief Executive Officer of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, called for responsible investment of pension assets in infrastructure, housing, energy and other productive sectors.

Represented by Olajumoke Akinwa, she said pension funds could support national development while safeguarding contributors’ retirement savings.

“Properly channelled into infrastructure, housing, energy, and productive sectors, these funds can help finance the growth we seek, while still protecting the retirement benefits of contributors,” she said.

Also speaking, Awabah Chief Executive Officer, Tunji Andrews, said the requirements for enrolling in the Personal Pension Plan had been reduced from 25 fields to four to encourage participation among informal-sector workers.

“As of today, those fields have been reduced to four fields only,” he said.

Andrews said the company had enabled pension registration and contributions through Point of Sale terminals in partnership with Moniepoint and Interswitch.

He also announced an initiative, Pension Oga, which would deploy agents to markets and communities to register informal workers, collect contributions and educate them on pension savings.

The acting Managing Director of NPF Pensions Limited, Mohammed Dutse, represented by Chukwuma Ohaka, commended efforts to improve pension administration, particularly the welfare of retired police officers.

A representative of Citizens Pension Limited, Khayran-Yunusa Aliu, also advocated wider financial inclusion through increased participation in micro-pension schemes.

In her welcome address, PenCAN President, Nana Musa, urged journalists to promote accountability and improve public understanding of pension reforms through accurate reporting.