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The Federal Government has cleared a 21-month backlog in accrued pension rights for enrolled federal workers, funding their entitlements up to December 2029, according to the National Pension Commission (PenCom).
The Director-General of PenCom, Omolola Oloworaran, disclosed this in her keynote address at the 2026 Pension Correspondents Association of Nigeria Conference on Wednesday, November 11, 2026, in Abuja.
The development marks a shift from the government’s previous funding delays, giving eligible workers greater certainty over their earned benefits and ensuring that pension obligations under the Contributory Pension Scheme are met.
FG Funds Pensions Until 2029
Oloworaran, represented by PenCom’s Head of Corporate Communications, Ibrahim Buwai, said the government had moved from owing accrued pension rights for 21 months to maintaining a 41-month funding surplus.
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She said the surplus meant that enrolled federal workers who had yet to retire had their accrued pension rights funded up to December 2029.
- “We are moving from a position where we had, where our full pension rights were 21 months in arrears, to where we are today, 41 months in surplus.”
- “And 41 months in surplus means that Federal Government employees who have not yet retired and who have enrolled have had their accrued pension rights paid up to December 2029.”
Oloworaran also said delays in pension payments had largely been eliminated, with retirement benefits now processed within 48 hours.
- “The issue of delays of payment of pension has now become history, and now pensions are being paid within a maximum of 48 hours from retirement.”
The PenCom boss highlighted the launch of the PenCare health insurance programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.
She explained that PenCare would reduce retirees’ medical expenses, allowing them to devote more of their monthly pensions to other needs. According to her, the initiative is funded by pension operators and PenCom, with an independent board of trustees chaired by the commission’s pioneer Director-General, Muhammad Ahmad.
On the minimum pension guarantee, she said eligible retirees receiving less than N52,500 would have their pensions increased, adding that some beneficiaries received payment alerts during Tuesday’s launch.
New Pension Benefits for Retirees
Oloworaran further disclosed that the Federal Government had approved additional exit benefits equivalent to 100% of terminal emoluments for eligible retirees, effective January 1, 2026.
She said eligible retirees in 2026 who had submitted their documents had already received payments.
- “The Federal Government has just approved the payment of 100 per cent of terminal emoluments as additional exit benefits.”
The Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Tolulope Odunaiya, represented by the Head of Corporate Communications, Olugbenga Ajayi, said the directorate had introduced remote verification and enhanced life-status checks for pensioners under the Defined Benefits Scheme.
She said the new process would allow pensioners to complete their verification without having to travel to designated locations.
- “With the new initiative of this verification without borders, pensioners in the US, in Uganda, in our villages can as well do their verification.”
Odunaiya also disclosed that registration had commenced for PTAD’s proposed health insurance programme ahead of its formal launch.
Meanwhile, the Chief Executive Officer of the Pension Fund Operators Association of Nigeria, Anthonia Ifeanyi-Okoro, represented by Olajumoke Akinwa, called for responsible investment of pension assets in infrastructure, housing, energy and productive sectors to support Nigeria’s $1 trillion economy target.
- “Properly channelled into infrastructure, housing, energy, and productive sectors, these funds can help finance the growth we seek, while still protecting the retirement benefits of contributors,” she said.
What you should know
Earlier in October 2026, Nairametrics reported that Nigeria’s pension fund assets increased by N10.7 trillion over two years, rising from N20.79 trillion in July 2024 to N31.48 trillion in July 2026, according to PenCom.
The growth represents an increase of more than 51% within two years, further cementing the pension industry’s position as one of Nigeria’s largest pools of long-term domestic capital.
According to Oloworaran, the significant growth in pension assets reflects increasing participation in the Contributory Pension Scheme (CPS), improved investment performance and growing confidence in the pension system.
The PenCom boss also revealed that 938,229 Nigerians enrolled in the CPS during the same period, expanding the number of workers saving for retirement.
She noted that the expansion in contributors and assets had strengthened the industry’s capacity to support long-term investments and retirement security.
