President Bola Ahmed Tinubu has approved a N758 billion bond to settle long standing pension liabilities under the Contributory Pension Scheme (CPS) for federal workers across the country.
This was approved during the Federal Executive Council (FEC) meeting on Tuesday February 4, 2025.
This is the first time the Federal Government is committing funds to the Pension Protection Fund, a statutory provision designed to augment pensions for low-income earners.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who disclosed this while briefing journalists after the meeting chaired by President Bola Ahmed Tinubu, said the move would address the financial burden faced by retirees awaiting their entitlements.
He explained that under the old Defined Benefit Scheme, some pensioners who had not yet retired required top-ups to their benefits whenever wage increases occurred, typically every five years.
The president’s intervention apart from clearing all pension increases since 2007, also settles the shortfall in university professors’ pensions ensuring they receive their full salary as pension.
Reacting to the decision, Director General of PenCom, Ms. Omolola Oloworaran, expressed profound appreciation to President Tinubu “for his bold and compassionate leadership in resolving these critical pension issues”.
Oloworaran emphasized that this intervention not only restores retirees dignity but also reinforces trust in the pension system, a key pillar of the CPS mandate.
The PenCom boss hailed the “President’s visionary approach in ensuring that pensioners receive their entitlements without delay, thereby fulfilling a fundamental promise of the CPS”.
She said the “bold step underscores the administration’s resolve to uphold the dignity of every Nigerian retiree and paves the way for a more sustainable and equitable pension system for generations to come”.
Since assuming office, the DG has worked closely with relevant authorities to resolve these liabilities culminating in the landmark achievement.
PenCom urges all stakeholders to collaborate in expediting the bond issuance, to actualize the President’s vision for pensioners.
