Tinubu Approves N758bn Disbursement to Clear Outstanding Pension Liabilities, Records 180% Recoveries

Nigeria’s pension system marked a significant milestone in 2025 as President Bola Tinubu approved the release of N758 billion to clear outstanding pension liabilities, while the National Pension Commission (PenCom) recorded a 180 per cent increase in recoveries from defaulting employers within the year.

Presenting a one-year performance report at the Pension Revolution Journalist Summit in Lagos, PenCom Director-General, Omolola Olowora, said the administration’s intervention represented a “historic turning point in restoring confidence among pensioners and contributors,” many of whom had awaited entitlements dating back to 2007.

According to PenCom, long-standing pension arrears for Federal Government treasury-funded retirees have now been fully settled, and “zero waiting time for payment of accrued pension rights was restored with effect from July 2025,” ensuring retirees receive their benefits promptly.

To enhance benefit adequacy, PenCom rolled out Pension Boost 1.0, which added about N2.68 billion to monthly payments under the Contributory Pension Scheme (CPS), easing financial pressure on retirees amid rising living costs.

Olowora explained that these reforms are anchored on Pension Revolution 2.0, “the most comprehensive overhaul of the pension industry since 2004,” which combines stronger regulation, tighter supervision, governance reforms, and full digital automation of critical pension processes, including pension clearance certificates, benefit processing, and contribution remittances.

A notable outcome of the reforms was a surge in employer compliance. PenCom revealed that between January and November 2025, recoveries jumped to N4.04 billion, compared with N1.44 billion in the entire 2024 financial year.

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The Commission noted that N2.06 billion of these recoveries occurred in the third quarter alone, following a compliance circular that linked Pension Clearance Certificates to participation across the pension industry value chain.

Similarly, the value of Pension Clearance Certificates issued rose sharply, with the third quarter of 2025 recording approximately N233 billion, up from a previous quarterly average of N150 billion, signalling improved compliance behaviour among pension operators.

Beyond compliance, PenCom launched the PenCare Initiative, an industry-wide healthcare programme providing free and accessible medical care for low-income retirees.

The Commission also established the Pension Industry Leadership Council to promote collaboration, accountability, and innovation across the sector.

To expand coverage among informal sector workers, PenCom restructured the Micro Pension Plan into the Personal Pension Plan, targeting artisans, traders, gig workers, and creatives.

The plan introduces simplified onboarding, digital enrolment, and the deployment of Accredited Pension Agents, expected to generate thousands of new jobs for young Nigerians.

On governance, the Commission raised capital requirements for pension operators and tightened rules to eliminate shadow directorships, insisting that institutions managing Nigerians’ life savings must be “transparent, well-capitalised and professionally run.”

Olowora emphasised that the reforms demonstrate that “the pension revolution is no longer a promise but an irreversible process,” stressing that retirement security is a right that must be protected.

“With these reforms, Nigeria is building a pension system that is inclusive, resilient, transparent and trusted,” she said.