Retirees Jubilate as PenCom Disburses N577bn to 1.05 Million RSAs
- PenCom disbursed N577.26 billion to over 1.05 million Retirement Savings Accounts using a Federal Government bond
- The commission paid pension increases and cleared contribution shortfalls, with a major share going to security sector retirees
- PenCom strengthened compliance measures in 2025, leading to a sharp rise in pension recoveries
FCT, Abuja - The National Pension Commission (PenCom) has announced the disbursement of N577.26 billion to 1,053,000 Retirement Savings Accounts (RSAs).
This move will provide relief to retirees and contributors affected by long-standing pension arrears under the Contributory Pension Scheme (CPS).
Source: UGC
Payments made from federal government bond
The Head of PenCom’s Management Services Department, Usman Musa, disclosed this on Tuesday at the 2025 PenCom Media Conference in Abuja.
He said the payments were drawn from the N758 billion federal government bond approved earlier this year to settle outstanding pension liabilities.
“In total, the payout of N577,264,960,890 has already hit the RSAs of retirees and pension contributors. This has directly impacted 1,053,000 Retirement Savings Accounts,” Mr Musa said.
He confirmed that the entire N758 billion bond approved by the Federal Government had been released to the commission.
Pension increases and contribution shortfalls addressed
According to Mr Musa, N387 billion of the bond was earmarked for pension increases, out of which N362.7 billion has already been paid, with the balance still undergoing processing.
He added that PenCom also remitted N107 billion to address a 2.5 per cent pension contribution shortfall by the federal government between 2017 and 2021, when contributions were not fully remitted. The funds were paid directly into the RSAs of 750,232 contributors.
Security sector retirees receive major share
A significant portion of the disbursements went to retirees in the security sector. Mr Musa noted that 32 per cent of the N354 billion paid so far, amounting to N132 billion, was disbursed to police retirees, Premium Times reported.
Earlier, PenCom Director-General, Omolola Oloworaran, described the approval and release of the N758 billion bond as one of the most significant interventions in Nigeria’s pension administration.
She said the move demonstrated the government’s commitment to clearing pension backlogs and strengthening confidence in the CPS.
“This bond sends a clear signal that pension obligations will no longer be ignored,” she said.
Pension Post 1.0 boosts monthly payments
Ms Oloworaran disclosed that PenCom introduced Pension Post 1.0 as part of efforts to improve benefit adequacy, adding N2.68 billion to monthly pension payments for CPS retirees since June.
Source: Twitter
“These are not just numbers. They are meals on tables, medicine bought, debts settled, and dignity preserved,” she said.
Compliance enforcement improves recoveries
PenCom also strengthened compliance across the pension value chain in 2025 by linking Pension Clearance Certificates to participation in pension-related financial transactions. Companies without valid certificates are now barred from doing business with Pension Fund Administrators, custodians and major banks, The Cable reported.
The commission said the policy led to a sharp increase in recoveries, with pension recoveries between January and November 2025 rising to N4.04 billion, compared with N1.44 billion recorded in the whole of 2024. Of this amount, N2.06 billion was recovered in the third quarter alone.
“This clearly demonstrates that when compliance is tied to real economic consequences, behaviour changes,” Ms Oloworaran said.
Background to pension reforms
Nigeria introduced the Contributory Pension Scheme in 2004 to replace the defined-benefit system, which was plagued by funding gaps, weak oversight and delayed payments. While the CPS improved transparency, pension arrears persisted for years due to funding shortfalls.
In February 2025, the Federal Executive Council approved the issuance of a N758 billion bond to fully settle outstanding pension liabilities, including accrued pension rights, pension increases since 2007, the Pension Protection Fund and pension shortfalls for university professors.
300,000 Nigerians change PFAs
In related news, about 300,000 Retirement Savings Account (RSA) holders in Nigeria have switched their pension fund managers in the last five years.
Legit.ng reported that these workers and retirees took advantage of the portability feature to change their PFAs without having to start from scratch. In these transfers, a total of N1.26 trillion was moved from one pension fund administrator to another.
Source: Legit.ng
