PenCom Abolishes Delays In Payment Of Pension Benefits
The National Pension Commission (PenCom) has announced sweeping reforms aimed at strengthening the Contributory Pension Scheme (CPS), improving retirees’ welfare, and deepening public trust in Nigeria’s pension system.
Speaking at the Stakeholders’ Conference on the Workings of the Contributory Pension Scheme held on Thursday in Abuja, the Director-General of PenCom, Ms. Omolola Oloworaran, said the Commission has moved from a legacy of unpaid benefits to a pension regime anchored on transparency, sustainability, and inclusiveness.
The conference, jointly organized by PenCom and the NSIWC, was attended by top government officials, labour leaders, pension fund administrators, and other stakeholders in the pension industry.
According to her, more than 10 million Nigerians, spanning civil servants, private sector employees, artisans, and the self-employed under the Personal Pension Plan, are currently covered by the CPS.
Pension assets, she revealed, have grown to over ₦25tn, supporting both regular monthly payments to retirees and strategic national development projects.
“As at today, over 844,000 retirees in the public and private sectors are receiving steady and reliable pension benefits. More than 552,000 retirees enjoy monthly pensions, while another 291,735 have accessed lump sum payments,” Oloworaran stated.
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Highlighting recent reforms, she said PenCom has launched Pension Boost 1.0, which increased pensions for over 241,000 retirees under the Programmed Withdrawal scheme, raising total monthly payments from ₦12.1bn to ₦14.8bn.
She also disclosed that since July 2025, retirees no longer face delays in accessing their pensions, as payments are now aligned with monthly salary disbursements by the Federal Ministry of Finance.
Other measures include the reintroduction of gratuity for civil servants, approval for a ₦758bn Federal Government bond to offset long-standing pension arrears, and the introduction of free health insurance for low-income retirees.
She added that PenCom has also rolled out five new regulations under the Pension Revolution 2.0 initiative, covering investment rules, whistle-blowing, and guidelines for personal pension agents.
“Today’s engagement is not just about policies; it is about reaffirming a shared vision, a Nigeria where every worker retires with dignity and every pensioner enjoys peace of mind,” the PenCom boss stressed.
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In his opening remarks, Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), Mr. Ekpo Nta, traced Nigeria’s pension journey from the 1951 Pension Ordinance through the Defined Benefit Scheme (DBS) to the 2004 Pension Reform Act that established the CPS.
He emphasized that pensions remain central to organizational stability and national productivity.
He noted that the 1999 Constitution mandates pension reviews every five years or alongside salary reviews, and reaffirmed NSIWC’s commitment to ensuring regular adjustments in line with constitutional provisions.
While praising the progress recorded so far, he acknowledged that with stronger governance, diversified investment of pension assets, and stakeholder collaboration, the future of Nigeria’s pension system is bright.
