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The Federal Government is set to issue a ₦758 billion bond before the first week of October to offset outstanding pension liabilities, according to the National Pension Commission (PenCom).
Speaking at a press briefing in Abuja on Thursday, the Director of Contribution and Bond Redemption Department at PenCom, Usman Musa, disclosed that the process had gained momentum following approvals from both the Federal Executive Council (FEC) and the National Assembly.
“As the DG has mentioned, the process of issuing the ₦758bn bond has commenced. In fact, we have gone very fast,” Musa said. “We are hopeful that by the end of this month, or at least the first week of October, the bond will be ready to go, and once that is done, payments will commence.”
PenCom’s Director-General, Omolola Oloworaran, described the inauguration of the Pension Industry Leadership Council as a “historic milestone” for the sector. Modeled after the Bankers’ Committee in the financial system, the council is designed to provide collective leadership and foster coordination across the pensions industry.
Highlighting the progress made since the introduction of the Contributory Pension Scheme (CPS) in 2004, Oloworaran noted that the scheme has mobilised long-term savings, safeguarded retirement dignity, and supported financial stability. However, she acknowledged lingering challenges such as coverage gaps, adequacy, governance, and demonstrable impact.
“The mandate of the council is clear,” she stated. “It includes expanding coverage, especially to the informal sector; enforcing governance and fiduciary standards; channeling pension assets into national development while protecting contributors’ interests; driving innovation in products and processes; and strengthening public confidence.”
Oloworaran further described ongoing reforms under President Bola Tinubu as “pension revolution 2.0,” citing directives on healthcare provision and a minimum pension guarantee for retirees.
“The President is passionate about the welfare of ordinary Nigerians. His charge is very clear: there must be social protection for Nigerians in old age,” she said.
On concerns about inflation and the value of Retirement Savings Accounts (RSAs), the DG revealed that PenCom is revising investment regulations to allow greater exposure to alternative and real assets, thereby hedging against currency devaluation and inflation.
“What we are doing as regulators is enabling PFAs to optimise returns,” she explained, assuring that retirees under the CPS continue to receive their entitlements promptly. “Once you retire and follow due process, you get your benefits within the same month. Payments are up to date as of September.”
She admitted that efforts to extend coverage through the Micro Pension Plan had fallen short but promised fresh initiatives soon. “The language is reform, reform, reform. From next week, you will begin to see the reforms unfold,” Oloworaran told journalists.
Earlier in February 2025, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had announced plans to issue bonds worth ₦758bn to clear accumulated pension debts. These include arrears under the old Defined Benefit Scheme predating the 2004 pension reforms. He explained that the liabilities had built up over time due to periodic wage increases, and their settlement would provide long-awaited relief to pensioners.
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