FG clears pension backlog, introduces N52,500 monthly floor for 173,000 retirees
Nigeria's pension system moves from deficit to surplus as government funds benefits through 2029 and launches minimum guarantee scheme.
The Federal Government has eliminated a 21-month backlog in pension payments for federal workers, with retirement benefits now funded through December 2029. The National Pension Commission announced the development at its annual conference in Abuja this week, signalling a major shift in how the country manages retirement obligations.
President Tinubu's administration has also introduced a minimum monthly pension of N52,500 covering approximately 173,000 retirees across federal service, state governments, and the private sector. The scheme fulfils a commitment outlined in pension reform legislation passed over two decades ago but never implemented until now.
A companion healthcare programme called PenCare provides free essential medical services to low-income pensioners. The pension system itself has strengthened considerably.
The scheme previously faced a funding deficit equivalent to 21 months of obligations. It now maintains a surplus covering 41 months of payments, according to PenCom Director-General Omolola Oloworaran.
This buffer improves the system's ability to meet retiree commitments without delay. Federal gratuity payments have also been approved at 100 percent, effective from January 1, 2026.
State governments must contribute to a N400 billion Pension Protection Fund for their retirees to access the minimum pension guarantee. This requirement ensures participating states share responsibility for supporting their retired workers under the new scheme.
The condition applies to all state pensioners seeking to benefit from the N52,500 floor, according to PenCom officials.
