THE Federal Government has approved a N758 billion pension bond to settle all outstanding liabilities under the contributory pension scheme.
Bond issuance is a way a company or a nation raises money as a loan repayable on agreed interest terms to sort out some budgetary or financial burden.
The government also said the bond would be released within three months to fully settle all outstanding pension liabilities under the contributory pension scheme (CPS).
This was revealed at a press conference in Abuja on Thursday, February 27, by the Director-General of the National Pension Commission(Pencom), Omolola Oloworaran.
She described the bond as a significant intervention by President Bola Tinubu, making it the first time the Federal Government was making a direct contribution to the Pension Protection Fund (PPF).
“A defining milestone in our nation’s pension administration has been achieved through the approval of a N758 billion Federal Government of Nigeria bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme,” said the director-general.
She added that N107 billion from the bond had been allocated to the pension protection fund, designed to provide financial relief to low-income pensioners who might not have saved enough to support themselves in retirement.
According to the director-general, the N758 billion bond would also clear long-standing arrears, including N253 billion for accrued pension rights owed to retirees from treasury-funded ministries, departments, and agencies (MDAs).
She also disclosed that N388 billion had been earmarked to settle unpaid pension increases dating back to 2007, which would benefit over 250,000 retirees.
Oloworaran explained that N11 billion was set aside to address pension shortfalls for university professors, ensuring that eligible retirees in the academic sector receive their full salaries upon retirement in line with pension reforms.
“N388 billion has been provided to clear pension increases that have remained unpaid for nearly two decades. This long-overdue entitlement, benefiting over 250,000 retirees, reflects the administration’s commitment to ensuring pensions remain fair and responsive to economic realities,” she added.
She noted that the commission would focus on expanding the micro pension plan, aimed at providing structured retirement savings for workers in the informal sector since the backlog has been addressed.
She assured that PenCom would work with all relevant stakeholders to ensure the smooth issuance of the bond and prompt disbursement of pension payments.
The ICIR reported that the Federal Government announced plans to begin addressing the pension backlog for retired workers under the Contributory Pension Scheme (CPS) starting on November 17, 2024.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, stated this during a rally organised by the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS) at the Federal Ministry of Finance in Abuja on Tuesday, November 12, 2024.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.