FG Clears Pension Backlog, Prefunds Accrued Rights for Federal Workers Till 2029

By Adedapo Adesanya

The federal government has cleared its 21-month backlog of accrued pension rights for enrolled federal workers and built a 41-month funding surplus, ensuring their retirement benefits are funded up to December 2029.

The Director-General of the National Pension Commission (PenCom), Ms Omolola Oloworaran, disclosed this on Wednesday at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja.

Ms Oloworaran, represented by PenCom’s Head of Corporate Communications, Mr Ibrahim Buwai, said the development marked a significant improvement in the government’s pension funding position.

She explained that the government had moved from owing 21 months of accrued pension rights to having a 41-month surplus, meaning that the entitlements of enrolled federal employees yet to retire had been funded up to December 2029.

She also said delays in pension payments had largely been eliminated, with retirement benefits now processed within a maximum of 48 hours after retirement.

The PenCom chief further highlighted the launch of the PenCare health insurance programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.

According to her, PenCare would reduce retirees’ healthcare expenses, allowing them to allocate more of their monthly pension payments to other needs.

She said the programme was being 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, Oloworaran explained that eligible retirees receiving below N52,500 would have their monthly pensions increased to the guaranteed amount, adding that some beneficiaries had received payment alerts during the launch.

She also disclosed that the Federal Government had approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective January 1, 2026.

She said eligible retirees who left service in 2026 and submitted the required documents had started receiving the payments.

Meanwhile, the Executive Secretary of the Pension Transitional Arrangement Directorate (PTAD), Mrs Tolulope Odunaiya, said the agency had introduced remote verification and improved life-status checks for pensioners under the Defined Benefits Scheme.

The initiative, known as Verification Without Borders, would enable pensioners living abroad and in remote communities to complete their verification without travelling to designated centres.

Mrs Odunaiya, represented by PTAD’s Head of Corporate Communications, Mrs Olugbenga Ajayi, also disclosed that registration had commenced for the directorate’s proposed health insurance programme ahead of its formal launch.

The chief executive of the Pension Fund Operators Association of Nigeria, Mrs Anthonia Ifeanyi-Okoro, called for responsible investment of pension assets in infrastructure, housing, energy and other productive sectors to support Nigeria’s $1 trillion economy ambition.