Pencom: FG’s N758bn Pension Bond to Clear Arrears, Rebuild Trust

By: Aremu Toyeebaht

The National Pension Commission (PenCom) has described President Bola Tinubu’s approval of a ₦758 billion bond to clear outstanding pension arrears as a major milestone in rebuilding trust and accountability within Nigeria’s pension system.

The fund, approved under the Contributory Pension Scheme (CPS), is designed to settle long-standing pension liabilities owed to federal workers across the country. It also represents the first direct financial contribution by the Federal Government to enhance the retirement benefits of low-income earners.

Speaking in Imo State on Monday, the newly appointed Federal Commissioner for Inspectorate at PenCom, Sam Uwandu, said the initiative underscores the President’s commitment to reforming the pension sector and ensuring that retirees are treated with dignity.

“This bond demonstrates President Tinubu’s sincere desire to see that retirees are paid promptly and without hassles after giving their productive years to public service,” Uwandu stated. “Hopefully, by the end of the month, the money will mature and payments will begin. First, we will start with the arrears, and soon retirees will start receiving their money.”

Uwandu also commended PenCom’s Director-General, Ms. Omolola Oloworaran, for ensuring transparency and due diligence in the disbursement process, assuring pensioners that no group will be left behind.

“I commend President Bola Tinubu for approving the ₦758 billion bond to offset arrears and guarantee that retirees receive a living pension wage. The DG, Ms. Omolola Oloworaran, is meticulous in ensuring we meet our targets, and pensioners are already expressing optimism,” he said.

Addressing concerns from retirees who preferred a one-off payment, Uwandu explained that the monthly pension structure remains the best safeguard against financial strain after retirement.

“Some pensioners said they prefer a one-off payment, but we’ve explained that what they subscribed to ensures a steady monthly income to cushion living costs. They understand and are now looking forward to full monthly payments,” he clarified.

The Commissioner urged retirees to remain patient as the process of bond maturity and verification continues, assuring that disbursements will begin before the end of the year.

“This is a turning point for Nigeria’s pension system,” Uwandu added. “It’s not just about clearing arrears; it’s about restoring trust, ensuring sustainability, and honoring the service of those who built the nation.”