The National Pension Commission (PenCom) has announced a significant development: for the first time since 2007, the long-standing pension arrears owed to retirees under the Contributory Pension Scheme have been cleared.
This milestone was achieved following the issuance and disbursement of a ₦758 billion Federal Government bond, marking a crucial step in supporting retirees and ensuring financial security for those who have dedicated their careers to public service.
The Director General of PenCom, Mrs Omolola Oloworaran, disclosed this during a media briefing at the 2025 Pension Revolution Summit, where the Commission presented its 365-day scorecard.
She explained that the bond was approved to settle accumulated unpaid accrued pension rights owed to retirees of federally funded ministries, departments and agencies, a situation that had resulted in delays of up to 21 months in benefit payments.
According to Oloworaran, the clearance of arrears has reduced the backlog of unpaid benefits to zero, ensuring that retirees now receive their pensions on time, with many paid within the same month of retirement.
Beyond eliminating payment delays, the Director General said the intervention also enabled payment of pension increases that had remained outstanding since 2007, describing the development as a significant improvement in retiree welfare and confidence in the pension system.
She noted that the reforms were supported by broader improvements across the pension industry, including growth in pension assets under management to over ₦26 trillion, with funds invested in line with regulatory guidelines to protect contributors’ savings while supporting economic development.
Oloworaran added that participation in the Contributory Pension Scheme has expanded to more than 10 million workers nationwide, with hundreds of thousands of retirees currently receiving benefits.
As part of efforts to further enhance retiree welfare, she said PenCom launched Pension Boost 1.0 in May 2025, increasing monthly pension payments for over 233,000 retirees and introducing a zero-waiting-time policy to ensure benefits are paid immediately upon retirement.
To sustain these gains, the Director General said the Commission automated key processes, including the online issuance of pension clearance certificates and the pension contribution remittance system, to ease compliance for employers and strengthen transparency.
She also said PenCom empowered accredited recovery agents to pursue outstanding pension contributions from defaulting employers, adding that collaborations with enforcement agencies were intensified to improve compliance with pension laws.
In addition, Oloworaran said benefit approval powers were delegated to Pension Fund Administrators to further reduce delays and accelerate the processing and payment of retirement benefits.
She said the reforms were aimed at strengthening the integrity of the pension system, expanding coverage and ensuring sustainable retirement security for Nigerian workers.
 has announced a significant development: for the first time since 2007, the long-standing pension arrears owed to retirees under the Contributory Pension Scheme have been cleared.){kind=link}