PenCom Releases N577bn to Retirees, Pension Contributors

The National Pension Commission (PenCom) stated that, it has paid out over N577.26 billion to 1,053,000 Retirement Saving Accounts (RSAs) and pension contributors, easing long- standing pension arrears under the Contributory Pension Scheme (CPS).

The action took place after the Federal Government’s unprecedented intervention to clear long-standing pension liabilities.

The Director-General of PenCom, Ms. Omolola Oloworaran, made the announcement while addressing journalists at the “2025 Pension Revolution Summit – A 365 Days Scorecard,” where she presented an account of reforms, payouts and structural changes recorded by the Commission over the past year.

Oloworaran said the Federal Government approved and released N758 billion to settle outstanding pension liabilities, describing the development as one of the most historic milestones in the pension industry.

According to her, the funds were realized through the bond market and deployed to address pension increases, accrued rights and other legacy obligations.

“The National Pension Commission has paid out N362,742,954,000 to about 194,000 retirees from the N758 billion realised,” she said. “The major tranche of this was N387 billion for pension increases. Out of this amount, we have paid N362,742,954,000, leaving a balance of about N24.7 billion, which we are processing.”

She explained that the pay out had a significant impact across the public sector, with a notable portion paid to security personnel. A director of the Commission added that “out of the N362 billion paid out, 32 per cent, amounting to N132 billion, was paid to the Nigeria Police.”

“We are coming out with the minimum pension guarantee. This is just a share of the Federal Government in paying the subvention for the minimum pension guarantee, and this is also being disbursed,” she said.

She added that PenCom has also remitted N107 billion to cover the Federal Government’s outstanding 2.5 per cent pension contributions for a five-year period, after noting that the government did not make those contributions between 2017 and 2021.

“This went directly to the addresses of 750,223 individual retirement savings accounts,” Oloworaran said, adding that payments to professors under approved pension enhancements were also ongoing in batches.

According to her, the cumulative effect of all the disbursements shows that a total of N577,264,960,890.43 has been credited directly to the accounts of pension retirees and contributors, impacting more than 1.05 million retirement savings accounts nationwide.

Speaking on the significance of the intervention, Oloworaran said the Presidential approval and release of N758 billion sent a strong message about the country’s commitment to its workforce. “This unprecedented intervention set a clear and powerful signal that Nigeria honours its promises to its workers and retirees. We have the talk and we do the precedent,” she said.

On technology-driven reforms, Oloworaran said the Commission has automated several previously manual processes, including pension payroll certification. “The process is now automated, and there is a significant upgrade coming,” she said, adding that benefit processing and contribution maintenance platforms have also been upgraded through a system known as COBRA, which she said is now live and operational.

She disclosed that PenCom inaugurated the Board of Trustees of the Pension Healthcare Initiative, known as PENCARE, describing it as a landmark intervention to provide affordable and accessible healthcare for low-income retirees.

“Retirement should be a season of peace, not a period defined by anxiety over medical bills,” she said, thanking industry stakeholders for supporting the initiative.

She said another major reform was the restructuring of the micro-pension plan into the Personal Pension Plan, aimed at expanding coverage among informal sector workers such as artisans, traders, gig workers and creatives.

“Under the Personal Pension Plan, onboarding is completely simplified. I believe you only need your name and a verifiable identity to onboard,” she said.

“Accredited pension agents are not merely a distribution channel. They are also an employment strategy,” Oloworaran said.

On regulation, she said the Commission deliberately raised capital requirements for pension operators to strengthen the industry. “This was not punitive. It was purposeful. Stronger capital means stronger institutions,” she said.

Oloworaran said a compliance circular issued in the second quarter of the year, which linked pension clearance certificates to participation in pension-related transactions, has already changed behaviour across the system.

“If you don’t have a pension clearance certificate, you can’t do business with PFAs, custodians or even transact with the largest banks,” she said.

In February 2025, the Federal Executives Council approved the issuance of a N758billion fund to fully settle outstanding pension liabilities, including accrued pension rights, Pension Protection Fund and the university professors’ pension shortfall.