Tinubu clears N758billion pension liabilities, records 180% recoveries

Nigeria’s pension system entered a new phase of stability and accountability in 2025 as President Bola Tinubu approved the disbursement of N758 billion to clear outstanding pension liabilities. Also the National Pension Commission (PenCom) recorded a 180 per cent surge in recoveries from defaulting employers within one year.

Presenting a 365-day scorecard at the Pension Revolution Journalist Summit in Lagos, PenCom Director-General, Omolola Oloworaran, said the administration’s intervention marked a historic turning point in restoring confidence among pensioners and contributors, many of whom had waited years for entitlements dating back to 2007.

According to the Commission, long-standing pension increase arrears for Federal Government treasury-funded retirees have now been fully settled, while zero waiting time for payment of accrued pension rights was restored with effect from July 2025, ensuring retirees receive benefits as and when due.

As part of measures to improve benefit adequacy, PenCom introduced Pension Boost 1.0, which has added about N2.68 billion to monthly pension payments under the Contributory Pension Scheme (CPS), easing pressure on retirees amid rising living costs.

The Director-General said the reforms were anchored on Pension Revolution 2.0, the most comprehensive overhaul of the pension industry since 2004, combining stronger regulation, tighter supervision, governance reforms and full digital automation of key pension processes, including pension clearance certificates, benefit processing and contribution remittances.

A major outcome of the reforms was a sharp rise in compliance by employers. PenCom disclosed that between January and November 2025, pension recoveries climbed to N4.04 billion, compared with N1.44 billion recorded in the entire 2024 financial year.

The Commission said N2.06 billion of the recoveries was recorded in the third quarter of 2025 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 jumped significantly. While issuances averaged about ₦150 billion per quarter previously, the third quarter of 2025 recorded issuances of approximately ₦233 billion, signalling a shift in compliance behaviour.

Beyond compliance, PenCom also launched the PenCare Initiative, an industry-wide healthcare programme aimed at providing free and accessible medical care for low-income retirees, as well as the Pension Industry Leadership Council to deepen collaboration, accountability and innovation across the sector.

In a bid to expand pension coverage among informal sector workers, the Commission restructured and rebranded 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 create thousands of new jobs for young Nigerians.

On governance, PenCom 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.

The Director-General said the reforms signalled that the pension revolution was 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.

Advertisement

Analysts say the reforms, backed by strong presidential support, have repositioned the pension industry as a stabilising force in the economy while restoring dignity and certainty to retirement for millions of Nigerians.