FG clears pension backlog, prefunds benefits till 2029 - Punch Newspapers

Director-General of the National Pension Commission, Omolola Oloworaran.

The National Pension Commission has disclosed that the Federal Government has funded the accrued pension rights of enrolled federal workers ahead of retirement until December 2029, reversing a previous 21-month funding backlog. The Director-General of PenCom, Omolola Oloworaran, disclosed this on Wednesday in her keynote address at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja. Oloworaran, represented by PenCom’s Head of Corporate Communications, Ibrahim Buwai, said the government had moved from owing accrued pension rights for 21 months to maintaining a 41-month funding surplus. “We are moving from a position where we had, where our full pension rights were 21 months in arrears, to where we are today, 41 months in surplus. And 41 months in surplus means that Federal Government employees who have not yet retired and who have enrolled have had their accrued pension rights paid up to December 2029,” she said. The development means that accrued pension rights for the affected federal employees have been funded in advance. Oloworaran also claimed that delays in pension payments had largely been eliminated, with retirement benefits now processed within 48 hours. “The issue of delays of payment of pension has now become history, and now pensions are being paid within a maximum of 48 hours from retirement,” she said. The PenCom boss highlighted the launch of the PenCare health insurance programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.Make PUNCH part of your everyday experience.Add us to your Preferred Sources She explained that PenCare would reduce retirees’ medical expenses, allowing them to devote more of their monthly pensions to other needs. According to her, the initiative is funded by pension operators and PenCom, with an independent board of trustees chaired by the commission’s pioneer Director-General, Muhammad Ahmad. On the minimum pension guarantee, she said eligible retirees receiving less than N52,500 would have their pensions increased, adding that some beneficiaries received payment alerts during Tuesday’s launch. Oloworaran further disclosed that the Federal Government had approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective 1 January, 2026. 2027: Afenifere Renewal Group backs Tinubu’s re-election 2027: Tinubu support group targets 20 million votes  2027: Tinubu’ll win all 36 states, says Ekiti APC chieftain “The Federal Government has just approved the payment of 100 per cent of terminal emoluments as additional exit benefits,” she said, adding that eligible 2026 retirees, who submitted their documents, had received payments. The Executive Secretary of the Pension Transitional Arrangement Directorate, Tolulope Odunaiya, represented by the Head of Corporate Communications, Olugbenga Ajayi, said the directorate had introduced remote verification and enhanced life-status checks for pensioners under the Defined Benefits Scheme. “With the new initiative of this verification without borders, pensioners in the US, in Uganda, in our villages can as well do their verification,” she said. Odunaiya also disclosed that registration had commenced for PTAD’s proposed health insurance programme, ahead of its formal launch. The Chief Executive Officer of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, represented by Olajumoke Akinwa, called for responsible investment of pension assets in infrastructure, housing, energy and productive sectors to support Nigeria’s $1tn economy target. “Properly channelled into infrastructure, housing, energy, and productive sectors, these funds can help finance the growth we seek, while still protecting the retirement benefits of contributors,” she said. Similarly, the Chief Executive Officer of Awabah, Tunji Andrews, disclosed that personal pension enrolment requirements had been reduced from 25 fields to just four, making it easier for Nigerians in the informal sector to register and contribute through Point of Sale terminals in partnership with Moniepoint and Interswitch. “As of today, those fields have been reduced to four fields only. Because of that innovation, we’ve been able to put onboarding and payments for PPP on POS terminals,” he said. Andrews added that Awabah had launched an initiative known as Pension Oga, which would deploy agents to markets and communities to register informal workers, collect contributions and educate Nigerians about pension savings, while calling for greater public awareness to expand participation in the Personal Pension Plan. The acting Managing Director of NPF Pensions Limited, Mohammed Dutse, represented by Chukwuma Ohaka, commended improvements in pension administration, particularly efforts to strengthen police retirees’ welfare. A representative of Citizens Pension Limited, Khayran-Yunusa Aliu, called for greater financial inclusion through expanded micro-pension participation. Meanwhile, the National President of the Nigeria Union of Pensioners, Godwin Abumisi, represented by Ahmad Ibrahim-Gazali, demanded the extension of the new exit benefits to retirees who left service between 2004 and December 2025. Sami Tunji Sami Tunji is a Senior Business Correspondent at Punch Newspapers with about five years of experience in data-driven reporting. He covers finance, ICT, and broader macroeconomic issues, combining analytical insight with clear storytelling. Sami’s work reflects strong editorial judgment, professional development, and a commitment to accurate and informative business journalism.

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