Pension: N577bn Disbursed to clear liabilities … Says PenCom DG

The federal government has disbursed over N577 billion from the N758 billion approved by President Bola Tinubu to clear outstanding pension liabilities under the contributory pension scheme (CPS).

This was disclosed by Omolola Oloworaran, director-general (DG) the National Pension Commission (PenCom) on Tuesday at the 2025 pension revolution summit in Abuja.

It will be recalled that on February 4, the president approved N758 billion to settle long-standing pension liabilities under the CPS for federal workers across the country.

Oloworaran said the payments covered pension increases, contribution shortfalls and other legacy obligations owed to retirees and contributors.

She said the total amount released was N757.9 billion, with N387 billion earmarked for pension increases.

According to the DG, N362.7 billion from the pension increase component has been paid to more than 9.1 million retirees, while the balance of about N24.7 billion is still being processed.

Oloworaran said N107 billion was also remitted to address a 2.5 percent pension contribution shortfall by the federal government between 2017 and 2021, benefitting about 750,223 retirement savings account (RSA) holders.

She added that funds were also deployed for the pension protection fund and the minimum pension guarantee. “In total, N577.5 billion has already hit the RSAs of retirees and contributors, impacting over 1.05 million accounts,” she said.

Oloworaran said the intervention marked a major step in restoring confidence in the pension system and signalled the federal government’s commitment to honouring its obligations to workers and retirees.

Reflecting on her first year in office, the DG said the commission launched Pension Reform 2.0, a wide-ranging agenda covering governance reforms, stronger supervision, digital transformation and industry realignment.

She said the reforms had produced measurable outcomes, including improved pension payments, stronger compliance and enhanced retiree welfare.

Oloworaran said the introduction of ‘Pension Boost 2.0’ had added N2.68 billion to monthly pension payments for CPS retirees since June.