The Nation Newspaper

Tag: pension liabilities

  • ‘Clearing pension liabilities will deepen trust’

    ‘Clearing pension liabilities will deepen trust’

    The approval of bond issuance of N758 billion to clear pension liabilities by President Bola Tinubu would clear long-standing pension obligations including pension increases owed since 2007.

    The payment of the backlog would deepen confidence in the pension system and bring relief to vulnerable pensioners.

    Director-General, National Pension Commission (PenCom) Ms. Omolola Oloworaran  said this at the workshop on the Working of the Contributory Pension Scheme CPS for employers and Pension desk officers in Abuja.

    She explained that the idea behind the workshop was to deepen trust and ensure that every federal employee and pensioner fully understands the CPS and can access its benefits without delay.

    Oloworaran, who was represented by Mr. Usman Musa, Director, Contribution and Bond Redemption Department noted that more than 10 million Nigerians from public service employees to private sector workers, and even artisans and the self-employed under the Personal Pension Plan, are covered under the CPS.

    She said: “Pension assets have grown to over N25 trillion, fueling national development through strategic investments, while also securing regular monthly pensions for over 552,000 retirees and lump sum benefits for an additional 291,735 retirees. In total, more than 844,000 retirees across both public and private sectors now enjoy retirement benefits that are steady, reliable, and transparent.

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    “In line with our mandate to protect contributors and guarantee dignity in retirement, PenCom has rolled out key interventions that are changing lives. They are, Pension Boost 1.0,  enhancing pensions for over 241,000 retirees, representing 80 per cent of those under Programmed Withdrawal. Monthly pensions rose from N12.157 billion to N14.837 billion, effective June 2025.

    “Presently, it is zero Waiting time for Pension Payments Since July 2025, no retiree waits to access their pensions again , payments are now immediate  aligning with monthly salary releases from the federal ministry of Finance, there is the

    proposal reintroduction of gratuity for civil servants working with the Office of the Head of the Civil Service, a framework has been developed to restore gratuity benefits for federal workers under CPS, in line with Section 4(4) of the PRA 2014”.

    Oloworaran added that Stronger Prudential Standards for Operators, Minimum capital and governance requirements for Pension Fund Administrators (PFAs) and Custodians have been revised to ensure greater financial stability, service delivery, and technological resilience, with issuance of Five New Regulations under the Pension Revolution 2.0 initiative, including:

    Whistle Blowing Guidelines for Pension Fund Assets, Revised Regulation on Investment of Pension Fund Assets and a

    Framework for Accredited Pension Agents under the Personal Pension Plan.

    The introduction of Free Health Insurance for Retirees beginning later this year and starting with pensioners in lower-income categories, ensuring dignity and security beyond financial pensions, while the CPS has achieved much, challenges remain. Coverage expansion is still limited, with several States and employers yet to fully comply. Public skepticism, often shaped by painful experiences of the past, continues to undermine trust in the system, she said.

  • Fed Govt will clear pension liabilities soon, PenCom DG assures retirees, others

    Fed Govt will clear pension liabilities soon, PenCom DG assures retirees, others

    • Agency trains PDOs for seamless processing of MDA retirees

    The Federal Government will soon clear the pension backlogs of Ministries, Departments and Agencies (MDAs) that have been pending since March, last year, the Acting Director-General, National Pension Commission (PenCom), Ms Omolola Oloworaran, has said.

    She stated this yesterday in Lagos at the workshop on Online Enrolment Application for Pension Desk Officers of Federal Government of Nigeria (FGN) Treasury-Funded MDAs under the Contributory Pension Scheme (CPS).

    She stated that though the delay in the release of funds by the Federal Government for the payment negates the objective of the CPS to pay promptly, she assured that the situation would soon be resolved.

    She said efforts had reached advanced stage, to not only clear outstanding pension liabilities, but to also put in place machinery that would address the problems.

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    The PenCom boss said they had met with various stakeholders, including the Minister of Finance, and Accountant-General of the Federation on the matter and that a lasting solution was on the way.

    She promised that not only would they clear the backlogs, but that they were working to ensure that the delays were a thing of the past.

    She said: “I want to use this opportunity to talk about the pending payments of retirees who retired since March 2023. This is an issue that we are fully aware of and we have been working on it. We have met with various stakeholders including the Minister of Finance, the Accountant-General of the Federation and the solution is in advanced stages.

    “We are almost getting there. It is a burning issue for the government and we are working with them to ensure the payments are made as quickly as possible. We will continue to follow up and very soon, we will be making the payments. The Federal Government under the CPS is also put in place lasting solution that will address the problems that we are facing.

    “I am saying that we have accrued pensions that haven’t been paid and the government realises it. Not only are we going to pay the backlogs but we are working to put lasting solutions to ensure that all these delays are a thing of the past. So we will put a process in place that once a retiree retires, they are paid immediately and within a reasonable time.”

    In her keynote address to the PDOs, Oloworaran, who expressed joy in meeting with stakeholders at the event, said the commission prioritises the role of the PDOs in ensuring a seamless retirement process in MDAs.

    She explained that the online enrolment application for PDOs of MDAs kickstarts the final preparations towards commencement of the Online Enrolment for 2025 prospective retirees of Treasury-funded MDAs.

    She recall that, in line with its mandate, PenCom conducts yearly pre-retirement verification and enrolment  for employees of Federal Government Treasury-funded MDAs who are scheduled to retire within the next fiscal year.

    “The objective of the exercise is to obtain accurate information of prospective retirees that would enable PenCom determine their Accrued Pension Rights for budgetary provision by the Federal Government. You would also recall that since 2021, the Commission has automated the retiree enrolment with the deployment of the Online Enrolment Application, which has the capabilities to register, verify, and enrol prospective retirees of Treasury-funded MDAs.

    “The Application has four modules, namely Retiree Module, MDA Module, PFA Module and PenCom Module. As indicated, the Application was designed with the MDA Module that enables the Pension Desk officers to upload information of retirees/prospective retirees. Therefore, in recognition of the significant role of the PDOs in the Retiree enrolment process, the Commission deems it necessary to organise annual workshop for the PDOs. Indeed, workshops like this, are integral to the Commission’s mandate and commitment to enhancing the knowledge and building the capacity of stakeholders in the Pension Industry. So, the objective of this workshop is to train the Pension Desk Officers with the requisite knowledge on the relevant Modules of the Enrolment Application.”

    She noted that the workshop would focus on addressing the gaps observed in the previous exercises and enlighten PDOs on the modalities for the upcoming enrolment for next year’s retirees.

    In addition, she said, PenCom held the workshop to provide PDOs with the hands-on training that would enable them to tackle the challenges encountered by them during the enrolment.

    She urged them to participate and ask questions as well as seek further clarifications, where necessary, to ensure proper understanding.

    Ms Oloworaran further stated that the Commission is not oblivious of the challenges being experienced occasionally with the Enrolment Application due to downtimes.

    “It is important to note that these downtimes mostly occur during the last-minute rush by retirees and relevant stakeholders to meet the enrolment deadline. While the Commission is committed to providing support to PDOs during those few periods of downtimes, I am particularly pleased to inform you that the Commission has already engaged a Consultant to design and develop a new Enrolment Application that will not only address these issues, but also provide users with a more friendly and seamless experience during the enrolment.

    “Events like this are timely and crucial as they provide a platform for PenCom to reiterate its commitment to continuous service improvement in the Pension Industry so that contributors and retirees receive the best possible experience regarding pension matters. It is also an occasion to interact with the stakeholders and discuss developments shaping the country’s pension landscape.’’