FG settles 957, 045 benefits, N758bn pension arrears

The Federal Government has liquidated all inherited pension liabilities dating back to 2007 with 957,045 beneficiaries across the nation fully settled.

The settlement of the arrears came through a N758bn intervention bond, according to the Director-General of the National Pension Commission, Ms Omolola Oloworaran.

She spoke during a keynote address titled: ‘From reform to reality: Renewed Hope, Pension Security for All Nigerians’ at the 2026 PenCom Media Conference in Lagos on Tuesday.

Oloworaran emphasised that the payout marks a decisive end to decades of delayed benefits passed down across multiple political administrations.

 She said: “The Federal Government cleared all inherited pension liabilities, some dating back to 2007. These obligations passed through multiple administrations, but this government chose to settle them. That is statesmanship, a debt paid, not just a promise.

“Every nation makes a promise to the people who build it—those who serve faithfully and diligently. When your working years are done, your country should not forget you. For too long, that promise was kept slowly, partially, or not at all. Today, I can report that this has changed—not in aspiration, but in fact.”

The landmark liquidation of legacy federal pension debts represents one element of a broader suite of institutional reforms implemented under President Bola Tinubu.

Aside clearing the backlog, PenCom informed accrued pension rights for federal employees scheduled to retire up to December 2029 have already been credited directly to their Retirement Savings Accounts ahead of time following a comprehensive one-time verification and enrolment drive.

To prevent future backlogs, the commission introduced a Zero Waiting Time Policy to align retirement payouts with monthly public service salary cycles, ensuring workers transition seamlessly into retirement without financial gaps. Benefit processing turnaround times have also dropped from up to 21 months to 48 hours.

On replicating federal pension successes across state governments, she explained: “We are engaging states. We are engaging states on various levels. Number one: get onboarded onto the Contributory Pension Scheme.

 “And then, number two: the conversation we are having with people who are now part of the scheme is the question of adequacy, on how we can benchmark what is being paid to retirees so that, you know, when we have inflation, there can be a balance. So, we want to see increments that match inflation or at least compensate for inflation. So, we are having two conversations, like I said: one, get onto the CPS; and two, on adequacy.”