FG clears pension backlog, prefunds benefits till 2029

The National Pension Commission (PenCom) has cleared a 21-month pension backlog and will fund the accrued pension rights of enrolled federal employees until December 2029. PenCom Director-General Omolola Oloworaran disclosed this at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja. She stated that the government has transitioned from owing accrued pension rights to maintaining a 41-month funding surplus.

This means that federal employees who have not yet retired and have enrolled will have their accrued pension rights paid up to December 2029. Oloworaran also revealed that delays in pension payments have largely been eliminated, with retirement benefits now processed within a maximum of 48 hours. The commission has launched the PenCare health insurance programme, which will help reduce retirees' medical expenses, and announced a minimum pension guarantee of N52,500 for eligible retirees.

The Federal Government has also approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective January 1, 2026.