FG clears 17-year pension backlog with N758bn intervention bond

The Federal Government in Nigeria has settled all pension liabilities dating back to 2007 through a N758 billion intervention bond, providing financial relief to 957,045 beneficiaries nationwide. This significant milestone was announced by Mrs. Omolola Oloworaran, Director General of the National Pension Commission, during her keynote speech at the 2026 PenCom Media Conference in Lagos.

Oloworaran emphasized that this action marks a decisive end to decades of delayed benefits under various political administrations, highlighting the government's commitment to pension security for all Nigerians. The intervention bond represents statesmanship by addressing a debt passed through multiple administrations, ensuring that those who served faithfully receive their due.

In addition to clearing the backlog, PenCom has already credited accrued pension rights for federal employees set to retire up to December 2029 directly into their Retirement Savings Accounts. This proactive approach prevents future pension backlogs and streamlines the retirement process. Beneficiary processing times have been dramatically reduced from up to 21 months to just 48 hours.

The conference also revealed substantial financial improvements for existing pension schemes, with retirees of the defunct Nigeria Social Insurance Trust Fund receiving an average payout increase of 1,173 percent and the settlement of N8.7 billion in arrears. Furthermore, the Pension Boost 1.0 initiative raised monthly disbursements across the Contributory Pension Scheme to ₦14.83 billion for over 241,000 retirees, significantly enhancing their monthly incomes.

The government's commitment to worker welfare extends beyond financial relief, with upcoming initiatives such as free healthcare support for low-income retirees, the implementation of a Minimum Pension Guarantee, and the expansion of the Micro Pension Plan to reach informal sector workers. These comprehensive reforms underscore the government's dedication to fulfilling its pension obligations and ensuring the well-being of its workforce after retirement.