The National Pension Commission (PenCom) reports that 844,000 retirees from both public and private sectors are now beneficiaries of consistent, transparent retirement payments under the Contributory Pension Scheme (CPS). The commission attributes this success to reforms begun under the Pension Reform Act 2004, as amended in 2014, which it says has resolved Nigeria’s long-standing pension payment challenges.
In a statement delivered at a pension workshop in Lagos, the Director General of PenCom, Ms. Omolola Oloworaran, said the introduction of the CPS stands as “one of the best things that has happened in the history of Nigeria,” adding that it has “permanently solved problem of unpaid pensions and retirement without hope.”
She further reflected on the transformation over the past two decades:
“Over the last two decades, the Contributory Pension Scheme has rewritten Nigeria’s pension story. We have moved from an era defined by unpaid entitlements and uncertainty to a new order anchored on transparency, sustainability, and inclusiveness.”
According to her, more than 10 million Nigerians, ranging from civil servants and private workers to artisans and self-employed individuals enrolled under the Personal Pension Plan, are currently covered by the CPS. The pension assets managed under the scheme have surpassed ₦25 trillion, and it supports more than 552,000 retirees receiving monthly pensions plus 291,735 retirees receiving lump-sum retirement benefits.
Ms. Oloworaran emphasized that reform is ongoing, noting:
“Reform is a continuous journey. In line with our mandate to protect contributors and guarantee dignity in retirement, PenCom has rolled out key interventions that are changing lives.”
In line with this, she announced that as of June 2025, monthly pension disbursements rose from ₦12.157 billion to ₦14.837 billion. She also affirmed that since July 2025, no retiree has to wait for pension access, because payments are now synchronized with monthly salary distributions from the Federal Ministry of Finance: “Payments are now immediate, aligned with monthly salary releases from the Federal Ministry of Finance.”
To strengthen the system further, PenCom is collaborating with the Office of the Head of the Civil Service to restore gratuity benefits for federal workers under the CPS, as provided in Section 4(4) of the PRA 2014. Meanwhile, the federal government has committed to issuing ₦758 billion in bonds to settle outstanding pension liabilities—including increases owed since 2007.
Moreover, the reforms have triggered stricter oversight of pension fund operators. Minimum capital requirements and governance standards for Pension Fund Administrators (PFAs) and custodians have been revised to enhance financial stability, service quality, and technological resilience. According to the commission, these changes aim to rebuild public confidence and ensure long-term viability of Nigeria’s retirement system.
