Federal Government Settles N758bn Pension Arrears

The Federal Government has cleared all inherited pension liabilities amounting to N758bn, providing financial relief to 957,045 beneficiaries across Nigeria. This milestone was announced by Ms Omolola Oloworaran, Director-General of the National Pension Commission (PenCom), during her keynote address at the 2026 PenCom Media Conference in Lagos.

Oloworaran stated that these pension obligations, some dating back to 2007, have been settled by the current administration, emphasizing the importance of honoring commitments to those who have served the nation. The initiative is part of broader reforms under President Bola Tinubu, which also includes the direct crediting of accrued pension rights for federal employees retiring up to December 2029 into their Retirement Savings Accounts.

To prevent future backlogs, PenCom has introduced a Zero Waiting Time Policy, aligning retirement payouts with public service salary cycles and reducing processing times from 21 months to 48 hours. Efforts to enhance pension awareness and literacy are also underway.