The National Pension Commission (PenCom) has announced updates on the N758 billion bond approved by the Federal Government to settle all outstanding pension liabilities under the Contributory Pension Scheme (CPS).
According to PenCom, the bond issuance process is underway, and they expect to start receiving funds by the end of this month or early October, which will then be used to make payments to pensioners.
This substantial bond, approved by the Federal Executive Council (FEC) in February 2025, marks a defining milestone aimed at resolving years of accumulated pension arrears under the Contributory Pension Scheme (CPS).
The move is designed to bring an end to the persistent delays and funding shortfalls that have plagued the retirement benefits of federal retirees.
The Director of PenCom’s Contribution and Bond Redemption Department, Usman Musa, recently stated in Abuja that the process is progressing rapidly, with the commission “hopeful that by the end of this month, or at least the first week of October,” they will begin receiving the proceeds and commence payments to eligible pensioners.
This single bond issuance is intended to fully resolve all accumulated liabilities for federal government retirees.
This covers various long-standing obligations, including Accrued Pension Rights, Pension Increases due since 2007, the Pension Protection Fund (PPF), and the shortfall in the pensions of University Professors. Out of the total amount, ₦253 billion has been specifically allocated to clear outstanding entitlements for retirees of FGN Treasury-funded Ministries, Departments, and Agencies (MDAs).
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had previously confirmed that the approval would allow the Debt Management Office (DMO) to raise the necessary funds.
PenCom has stressed that with the bond issuance, all due payments and backlogs will be transferred to the respective Pension Fund Administrators (PFAs), ensuring timely disbursement to all affected retirees.
Furthermore, going forward, PenCom has committed to including accrued pension rights in the monthly personnel cost general warrant, guaranteeing that future payments will be automatic and punctual. This landmark effort not only addresses past failures but aims to restore trust and stability to Nigeria’s pension administration system.
