FG to Float N758bn Bond in 3 Months to Clear Pension Arrears

The Director-General of the National Pension Commission (PenCom) Mrs. Omolola Oloworaran has stated that the commission is optimistic that the recently approved N758 billion bond by the Federal Executive Council to clear pension liabilities will be concluded and floated in the next three months

Oloworaran made the disclosure in Abuja on Wednesday at a press conference on recent developments in the pension sector.

She said the N758 billion Federal Government of Nigeria (FGN) Bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS) was a decisive intervention by President Bola Tinubu, which signals a new dawn for pensioners, ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits.

“The bond resolves all accumulated pension liabilities, covering Accrued Pension Rights of N253 billion allocated to settle outstanding entitlements for retirees of FGN Treasury-funded MDAs, addressing the delays caused by previous funding shortfalls. Going forward, accrued pension rights will be included in the monthly personnel cost general warrant, ensuring automatic and timely payments.

“Also, N388 billion has been provided to clear pension increases that have remained unpaid for nearly two decades and is set to benefit over 250,000 retirees,

“Similarly, for the first time, the Pension Protection Fund (PPF) is contributing N107 billion to the PPF, ensuring that pensioners, particularly low-income earners—receive a living wage in retirement. This is a major step towards strengthening financial security for all retirees under the CPS, just as N11billiom has been allocated for University Professors’ Pension Shortfall allowing eligible university professors to retire on their full salary, addressing the funding gaps that previously hindered its execution,” she explained.

Asked the time frame for the bond issuance, she said, “The bond was just approved by the Federal Executive Council and will undergo a process of approval before it will be floated for Pension Fund Operators and Nigerians to subscribe and invest and we are hopeful in the next 3 months it should be concluded.”