FG Disburses N577bn Payout to Over 1M Retirees, Contributors — PenCom

The National Pension Commission (PenCom) has disbursed more than N577.26 billion directly to retirees and pension contributors, following what it described as an unprecedented Federal Government intervention to clear years of accumulated pension obligations.

PenCom’s Director-General, Ms Omolola Oloworaran, disclosed this at the “2025 Pension Revolution Summit, A 365 Days Scorecard,” where she briefed journalists on payouts, reforms and institutional changes achieved by the Commission in the past year.

She said the Federal Government approved and released N758 billion to offset outstanding pension liabilities, a move she described as a landmark moment for the country’s pension system.

According to her, the funds were raised through the bond market and applied to pension increases, accrued rights and other inherited obligations.

“The National Pension Commission has paid out N362,742,954,000 to about 194,000 retirees from the N758 billion realised,” Oloworaran said.

“The major tranche of this was N387 billion for pension increases. Out of this amount, we have paid N362,742,954,000, leaving a balance of about N24.7 billion, which we are processing.”

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She explained that the payments cut across the public sector, with security agencies receiving a significant share.

A director at the Commission added that “out of the N362 billion paid out, 32 per cent, amounting to N132 billion, was paid to the Nigeria Police.”

Oloworaran also announced the commencement of disbursements under the minimum pension guarantee, which she described as the Federal Government’s contribution to supporting retirees with lower earnings.

“We are coming out with the minimum pension guarantee. This is just a share of the Federal Government in paying the subvention for the minimum pension guarantee, and this is also being disbursed,” she said.

She further revealed that PenCom remitted N107 billion to settle the Federal Government’s outstanding 2.5 per cent pension contributions covering a five-year period, after noting that such payments were not made between 2017 and 2021.

“This went directly to the addresses of 750,223 individual retirement savings accounts,” Oloworaran said, adding that pension enhancements approved for professors were also being paid in phases.

According to her, when all disbursements are combined, a total of N577,264,960,890.43 has been credited to the accounts of retirees and contributors, benefiting more than 1.05 million retirement savings accounts nationwide.

On the broader significance of the intervention, she said the presidential approval and release of N758 billion underscored Nigeria’s commitment to its workforce.

“This unprecedented intervention set a clear and powerful signal that Nigeria honours its promises to its workers and retirees. We have the talk and we do the precedent,” she said.

Oloworaran also highlighted the introduction of Pension Post 1.0 earlier in the year, aimed at improving benefit adequacy.

She said the initiative has increased monthly pension payments by N2.6 billion for retirees under the Contributory Pension Scheme since June.

“These are not just numbers,” she said. “They are meals on tables, medicine bought, debts settled, and dignity preserved.”

On operational reforms, she said several manual processes have been automated, including pension payroll certification.

“The process is now automated, and there is a significant upgrade coming,” she said, noting that benefit processing and contribution maintenance have also been enhanced through the COBRA platform, which she confirmed is now live.

She announced the inauguration of the Board of Trustees of the Pension Healthcare Initiative, known as PENCARE, describing it as a major step toward providing affordable healthcare for low-income retirees.

“Retirement should be a season of peace, not a period defined by anxiety over medical bills,” she said, while acknowledging the support of industry stakeholders.

Oloworaran further disclosed the creation of the Pension Industry Leadership Council to deepen collaboration, accountability and innovation within the sector.

She also said the micro-pension scheme had been restructured into the Personal Pension Plan to widen participation among informal workers, including artisans, traders, gig workers and creatives.

“Under the Personal Pension Plan, onboarding is completely simplified. I believe you only need your name and a verifiable identity to onboard,” she said.

She added that digital enrolment has been expanded and accredited pension agents introduced, with approval in principle already granted to one agent, Awabah, while another is undergoing the process.

According to her, the programme is also designed to generate jobs for young Nigerians.

“Accredited pension agents are not merely a distribution channel. They are also an employment strategy,” Oloworaran said.

On regulation, she said capital requirements for pension operators were deliberately raised to strengthen the industry.

“This was not punitive. It was purposeful. Stronger capital means stronger institutions,” she said, adding that governance standards were tightened to eliminate shadow directorships.

“Pensions cannot be managed from the shadows. Transparency, accountability, and fit-and-proper leadership are not negotiable,” she said.

She also pointed to a compliance circular issued in the second quarter of the year, which tied pension clearance certificates to participation in pension-related transactions, as a turning point for enforcement.

“If you don’t have a pension clearance certificate, you can’t do business with PFAs, custodians or even transact with the largest banks,” she said.

According to her, the directive has significantly boosted recoveries. “From January to November this year, total pension recoveries reached N4.04 billion, compared to N1.44 billion for the whole of 2024. That is an increase of about 180 per cent,” she said, adding that N2.06 billion was recovered in the third quarter of 2025 alone.

She said the figures demonstrate the impact of stricter enforcement. “This clearly demonstrates that when compliance is tied to real consequences, behaviour changes,” Oloworaran said.