The Federal Government is set to issue a N758 billion bond by early October to address outstanding pension liabilities, according to the National Pension Commission (PenCom). During a press briefing in Abuja on Thursday, Usman Musa, Director of the Contribution and Bond Redemption Department at PenCom, stated that the bond issuance process is progressing rapidly, with approvals already secured from the Federal Executive Council and the National Assembly.
“The process for the N758bn bond has started, and we are moving quickly,” Musa said. “We expect to begin receiving funds by the end of this month or the first week of October, enabling us to start payments immediately.”
In her remarks, PenCom’s Director-General, Omolola Oloworaran, hailed the establishment of the Pension Industry Leadership Council as a “landmark achievement” for the pension sector. She likened the council to the Bankers’ Committee, emphasizing its role in providing unified leadership and coordination. “Since the Contributory Pension Scheme began in 2004, it has driven long-term savings, restored dignity in retirement, and enhanced financial stability,” Oloworaran said. “However, challenges like coverage gaps, adequacy, governance, and demonstrating tangible impact remain, and we must do more.”
She outlined the council’s objectives, which include expanding pension coverage to the informal sector, strengthening governance and fiduciary standards, directing pension assets toward national development while protecting contributors, fostering innovation in products and processes, and boosting public trust in the system.
Oloworaran described President Bola Tinubu’s pension reforms as “Pension Revolution 2.0,” highlighting initiatives like healthcare provisions and a minimum pension guarantee for retirees. “The President is deeply committed to ensuring social protection for ordinary Nigerians in their old age,” she said.
Addressing concerns about inflation eroding Retirement Savings Accounts, she revealed that PenCom is revising investment regulations to allow Pension Fund Administrators (PFAs) to invest more in alternative and real assets to counter devaluation and inflation. “Our regulations are designed to help PFAs maximize returns for contributors,” she noted.
Oloworaran also confirmed that retirees under the Contributory Pension Scheme are receiving benefits promptly, with all arrears cleared as of September. “Retirees now receive their benefits in the month of retirement, provided they follow the correct process,” she said. However, she acknowledged that the micro-pension plan for the informal sector has not met expectations but promised new initiatives starting the following week. “Reform is our focus, and from Monday, you will see these changes roll out,” she told reporters.
Earlier in February 2025, The PUNCH reported that the Minister of Finance, Wale Edun, announced plans to issue N758bn in bonds through the Debt Management Office to clear pension debts from the pre-2004 Defined Benefit Scheme. These liabilities, accumulated due to periodic wage increases, have long burdened pensioners, and the bond issuance aims to provide much-needed relief.
