FG Plans ₦758bn Bonds to Clear Pension Backlogs, Says PenCom DG

The Federal Government has approved the issuance of ₦758 billion worth of bonds to settle outstanding pension liabilities, the Director-General of the National Pension Commission (PenCom), Mrs. Aisha Dahir-Umar, has announced.

Speaking on Thursday in Abuja, Dahir-Umar said the move reflects the government’s renewed commitment to addressing the backlog of accrued pension rights owed to retirees under the Contributory Pension Scheme (CPS).

According to her, the bond approval will cover unpaid entitlements for retirees of federal ministries, departments, and agencies who retired between 2021 and 2023, as well as those yet to be fully captured in previous payments.

“We are pleased to inform stakeholders that the Federal Government has approved the issuance of ₦758 billion in bonds to clear outstanding pension liabilities.

This marks a significant milestone in the ongoing efforts to ensure that retirees receive their benefits promptly and in full,” she stated.

The PenCom DG added that the commission has commenced collaboration with the Debt Management Office (DMO) and the Office of the Accountant-General of the Federation to facilitate the release and payment process.

She assured that once the bonds are issued, the funds will be disbursed directly into retirees’ Retirement Savings Accounts (RSAs) managed by their respective Pension Fund Administrators (PFAs).

Dahir-Umar also reiterated PenCom’s commitment to safeguarding pension assets and maintaining transparency in the management of retirement funds.

The approval comes amid growing concerns from retirees and labour unions over delays in the payment of accrued rights, with many urging the government to prioritise pensioners’ welfare amidst the current economic challenges.

Analysts have described the move as a positive step toward restoring confidence in Nigeria’s pension system and addressing the lingering concerns of retirees awaiting their benefits.