President Bola Ahmed Tinubu has approved the issuance of a ₦758 billion bond to offset outstanding pension liabilities and implement long-overdue increases for federal retirees under the Contributory Pension Scheme (CPS).
The initiative will guarantee a ₦32,000 monthly baseline pension for retirees in the education, health, security, and armed forces sectors, regardless of individual savings balances. The move is in line with the National Minimum Wage Amendment Act 2024 and consequential adjustments.
Tinubu, on August 6, directed the “prompt implementation of long-overdue pension increases and a minimum pension guarantee, which would provide a safety net for the most vulnerable pensioners under the CPS.”
An official of the National Pension Commission (PenCom) confirmed yesterday that with the National Assembly’s concurrence, “the bond proceeds will soon be available to settle retirees.”
Breakdown of the ₦758bn Bond
PenCom’s Director-General, Omolola Oloworaran, explained that the bond will be disbursed across three major categories:
- ₦253 billion will clear accrued rights owed to federal workers employed before the CPS began in 2004, as well as those who were within three years of retirement when the scheme commenced.
- ₦387.5 billion is allocated to cover pension increases dating back to 2007, which had remained unsettled for nearly two decades.
- ₦107 billion will go into the Pension Protection Fund, created to support low-income retirees and ensure they receive a living wage.
“This intervention clears the backlog of accrued rights payments and ends the delays in pension disbursements that have caused frustration in recent months,” Oloworaran said.
She added: “Confidence in the CPS has waned in recent years due to unresolved liabilities. This initiative demonstrates that the government is committed to protecting the welfare of ordinary Nigerians.”
Swift Implementation Expected
According to PenCom, once the bond is issued, Pension Fund Administrators (PFAs) will credit retirees’ accounts immediately. The commission has assured close oversight to ensure prompt payments.
The National Salaries, Incomes and Wages Commission (NSIWC) had earlier announced the adjustment, confirming that every affected retiree would receive an additional ₦32,000 per month.
By settling longstanding arrears and guaranteeing a minimum pension, the federal government hopes to restore trust in the contributory pension system and provide relief for thousands of retirees who have waited years for their entitlements.
