President Bola Tinubu has approved the release of N758 billion to settle long-standing pension liabilities in Nigeria, a move described as a major step towards restoring confidence in the country’s pension system. The disbursement aims to clear outstanding obligations owed to retirees and contributors, many of whom had been waiting for payments for years.
The National Pension Commission (PenCom) announced the development during its 2025 Pension Revolution Summit, where it presented a one-year performance report. Omolola Oloworaran, Director-General of PenCom, said the intervention marked a historic moment in the management of pensions and helped to build trust between the government and pensioners.
According to PenCom, the funds have already begun to reach retirees and pension contributors. By mid-December, more than N577 billion of the approved amount had been paid directly into the accounts of over one million Retirement Savings Accounts (RSAs) nationwide. This includes pension increases, accrued rights and other inherited obligations under the Contributory Pension Scheme.
Part of the intervention focused on addressing pension increases owed to federal retirees and ensuring that accrued rights are paid promptly. The commission also said that it has eliminated waiting time for payments, so retirees can now access benefits as soon as they are due.
In addition to the pension payments, PenCom reported a significant rise in recoveries from employers who failed to remit required pension contributions. Between January and November 2025, the commission recovered N4.04 billion, representing a 180 per cent increase compared with the entire amount collected in 2024. PenCom attributed this rise to stronger enforcement measures, including a policy linking Pension Clearance Certificates to participation in the pension industry value chain.
The reforms are part of PenCom’s broader Pension Revolution 2.0 agenda, which includes full automation of key pension processes, tighter regulatory oversight and improvements in governance. The commission has also introduced initiatives such as Pension Boost 1.0 to enhance monthly pension payments and the PenCare healthcare programme to support low-income retirees.
Officials say that the combination of the N758 billion intervention and these structural reforms is improving benefit adequacy, boosting compliance across the industry and strengthening the pension system’s role as a contributor to long-term economic stability.
