PenCom Pays N362.74bn From N758bn Pension Bond To Clear Long-standing Arrears

The National Pension Commission (PenCom) has paid out N362.74billion from the N758billion pension bond approved by President Bola Tinubu to address long-standing pension arrears and increments under the Contributory Pension Scheme (CPS).

The director-general of PenCom, Omolala Oloworaran, made the disclosure while giving her 365 Days Scorecard at the Pension Revolution Summit in Abuja. The bond was designed to clear accrued pension rights dating back to 2007 and provide relief to retirees and contributors.

According to her, the largest component of the bond—N387billion—was earmarked for pension increases and adjustments. Of this amount, N362,742,954,194 has already been disbursed, with a balance of about N24.7billion currently undergoing processing and purchase.

She explained that the payments were made directly into the Individual Retirement Savings (IRS) accounts of eligible retirees and contributors, ensuring transparency and eliminating delays associated with manual processing.

The PenCom DG said the disbursement formed part of the Federal Government’s broader effort to restore confidence in the pension system and improve the welfare of pensioners who had waited several years for their entitlements.

“This intervention is targeted at clearing long-standing pension increases and ensuring that retirees receive what is due to them promptly and with dignity,” she said.

She added that the payments had a direct impact on more than one million Retirement Savings Accounts, significantly easing the financial burden on affected retirees and workers.

The pension regulator boss noted that the bond intervention would also strengthen investor confidence in the pension industry, as it demonstrates the government’s commitment to meeting its pension obligations.

She assured contributors and retirees that the remaining balance under the pension increase component would be settled once processing was completed, while other components of the N758billion bond, including payments related to pension guarantees and outstanding government contributions, were being implemented in phases.

The PenCom DG reaffirmed the Commission’s commitment to safeguarding pension assets and ensuring the sustainability of the CPS.

On the technology front, Ms Oloworaran said the Commission still has a lot to do, but so far this year, it has achieved full automation of critical pension processes.

“Over time, we have achieved an automated pension plan certificate, which used to be a manual process before, but now the process is automated. We have also automated and upgraded the benefit processing and contribution remittance platform.

“To strengthen collaboration and leadership across the industry, we established the pension industry leadership council, a strategic platform that brings together industry leaders to drive innovation, reinforce accountability and build collective ownership of reforms,” she added.

She maintained that the defining reform of the year was the restructuring and rebranding of the micro pension plan into the Personal Pension Plan.

“This was about meeting Nigerians, where they are, artisans, traders, gig workers, market women, creatives, all informal sectors at large under the personal pension plan, we have simplified onboarding. Onboarding is completely simplified. I believe you only need your name, as simple as having a need to onboard and be on the personal pension and plan,” she said.

The DG revealed that the Commission has also expanded digital enrollment, and crucially, introduced accredited pension agents, explaining that the accredited pension agents are not merely a distribution channel, but also an employment strategy.

“We believe that with this initiative, thousands of young Nigerians will be recruited and trained across board to participate in expanding pension coverage across the country. And also it’s also a medium for any meaningful livelihoods and impactful financial inclusion, and I dare say that this is enabling financial inclusion that creates jobs,” she said.

The DG also mentioned that a total of N32.27 billion has been recovered by the recovery agents comprising N15.87 billion recovered as principal contributions and N16.40 billion as penalties from defaulting employers between June 2012 and September 2025.

In addition, she said it had recorded significant compliance gains in the third quarter of 2025 alone, recovering N2.06 billion (N775 million principal and N1.27 billion penalties) from 49 defaulting employers, reflecting a sustained surge in enforcement activities.

On states compliance with the CPS, Oloworaran disclosed that only eight (8) out of 36 states have complied. She, however, stated that the Commission was partnering with all states to ensure full compliance.

She also disclosed that the Nigeria Police Force is yet to exit the CPS. Adding that the Commission was working round the clock to ensure that their plight is adequately addressed instead of exiting.

She disclosed that so far, about N132billion out of the N338billion has been paid to them (22%), saying that the police constituted about 40% of the public service pensioners in the country.