Nigeria’s PenCom Clears Pension Arrears, Launches Pension Reform 2.0

By Oluwakemi Kindness

The National Pension Commission (PenCom) says it has cleared all outstanding pension arrears under the Contributory Pension Scheme (CPS).

This is according to the Director-General of PenCom, Ms. Omolola Oloworaran, who said retirees under the scheme now receive their benefits promptly.

She stated this on Thursday while speaking with newsmen shortly after the inauguration of the Pension Industry Leadership Council (PILC) in Abuja.

The DG assured that pension payments are up to date and that complaints of delayed benefits are now in the past.

“Under the CPS, there is no outstanding pension benefit due to any worker. In fact, you get your benefits now the month that you retire, provided you follow the right process and complete your enrollment,” she said.

“All accrued rights have been paid up to September, and we have no one else to thank but President Bola Tinubu, who has made the welfare of ordinary Nigerians a priority.”

Speaking further, the DG also disclosed that the Commission is preparing to introduce what she described as “Pension Revolution 2.0,” a set of bold reforms aimed at transforming retirement benefits in the country.

“I use the word revolution deliberately because these are very bold reforms. For the first time, retirees will have access to healthcare under the pension system. In addition, the President has approved the introduction of a minimum pension guarantee, so that no Nigerian is left with a ridiculous sum at retirement,” she said.

On efforts to protect contributors’ Retirement Savings Accounts (RSAs) from inflation and naira devaluation, the DG said the Commission is finalizing a revised investment regulation that will increase exposure to alternative and real assets.

“We are revising the investment regulations to increase limits on alternative assets and real assets that can provide a hedge against inflation and currency risks. Our goal is to ensure contributors’ funds are better protected and optimized,” she explained.

She further gave an update on the ₦758 billion bond earlier approved by the Federal Executive Council to clear pension liabilities under the old scheme.

According to her, the bond has secured National Assembly approval and the Debt Management Office is finalizing issuance.

“We are hopeful that by the end of this month or the first week of October, proceeds will start coming in. Once that is done, we are ready to commence payment of pension increases and other liabilities,” she said.

Acknowledging challenges in extending coverage to the informal sector, the DG admitted that the micro-pension plan has fallen short of expectations.

She, however, noted that new initiatives and pilot programmes will be launched to capture more informal workers.

“We all agree that we underperformed in that area. That is why we are working on fresh initiatives to bring more informal workers into the pension net. Expect to hear more in the coming weeks as reforms unfold,” she added.

On the broader role of pensions in national development, she said the Commission will strengthen coordination to ensure long-term funds are invested in productive sectors of the economy.

“Pension funds are a long-term pool of capital. With the right safeguards, we will channel them into infrastructure, agriculture for food security, affordable housing, and the capital markets. These investments will not only generate returns but also create jobs and drive national development,” she said.

The DG concluded by urging stakeholders to pay attention to the unfolding reforms. “From Monday going forward, it’s all about reforms, reforms, reforms,” she declared.