President Bola Tinubu has approved the release of ₦758 billion to clear long-standing pension liabilities under the nation’s Contributory Pension Scheme (CPS), marking a major development in Nigeria’s retirement benefits landscape.
Unveiling the one-year performance of the National Pension Commission (PenCom) on Friday at the Pension Revolution Journalist Summit in Lagos, Director-General Omolola Olowora described the funding intervention as a “historic turning point in restoring confidence among pensioners and contributors,” especially for those who have waited years for entitlements dating as far back as 2007.
PenCom disclosed that long-standing pension arrears for Federal Government treasury-funded retirees have now been fully paid, and a policy of “zero waiting time for payment of accrued pension rights” was reinstated in July 2025, ensuring beneficiaries receive payments promptly.
To fortify retiree welfare, the commission rolled out Pension Boost 1.0, a measure that has added approximately ₦2.68 billion to monthly pension disbursements, easing financial pressures amid rising living costs.
Olowora outlined that the reform strategy — branded Pension Revolution 2.0 — represents the most comprehensive overhaul of the pension industry since 2004.
She explained it combines stronger regulation, tighter supervision, governance reforms, and full digital automation of key processes such as pension clearance certificates, benefit processing, and contribution remittances.
A notable outcome of these reforms is an upsurge in employer compliance. PenCom reported that between January and November 2025, recoveries from defaulting employers reached ₦4.04 billion, up from ₦1.44 billion for the entire 2024 financial year — a 180% increase. A significant portion of this recovery — ₦2.06 billion — occurred in the third quarter alone following a compliance circular linking Pension Clearance Certificates to broader industry participation.
The value of Pension Clearance Certificates issued also climbed, with the third quarter of 2025 recording approximately ₦233 billion, compared with a previous quarterly average of ₦150 billion, indicating improved adherence to pension rules by employers and operators.
In addition to financial settlements, PenCom has introduced the PenCare Initiative, an industry-wide healthcare programme offering free medical services to low-income retirees, and established the Pension Industry Leadership Council to foster collaboration, accountability, and innovation across the sector.
The commission has also reconfigured the Micro Pension Plan into the Personal Pension Plan to expand coverage among informal sector workers — including artisans, traders, gig workers, and creatives — through simplified onboarding, digital enrolment, and deployment of Accredited Pension Agents, a move expected to create thousands of jobs.
On governance, PenCom has raised capital requirements for pension operators and tightened rules to eliminate shadow directorships, insisting institutions managing Nigerians’ retirement savings must be “transparent, well-capitalised and professionally run.”
Olowora emphasized that “the pension revolution is no longer a promise but an irreversible process,” stressing that retirement security is a right that must be protected. “With these reforms, Nigeria is building a pension system that is inclusive, resilient, transparent and trusted,” she added.
