The National Pension Commission (PenCom) has revealed the status of the approved N758 billion Federal Government of Nigeria (FGN) bond to fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
The Director of Contribution and Bond Redemption Department at PenCom, Usman Musa, highlighted developments surrounding the bond at a press briefing in Abuja.
The official stressed that the process for the bond issuance has commenced.
According to Musa, “As the DG has mentioned, the process of issuance of the N758 billion bond has commenced. In fact, we have progressed very fast.
“We are hopeful that by the end of this month, or at least the first week of October, we will start receiving the proceeds. Once that is done, the bond is ready to go; we will commence payment.”
The PenCom DG, Omolola Oloworaran, stressed that significant progress had been made on the N758 billion bond, adding that “government efforts are ongoing,” NAN reports.
Recall that the Federal Executive Council (FEC) had, on February 5, 2025, approved the issuance of a N758 billion bond to settle outstanding pension liabilities for federal pensioners.
Naijaonpoint previously reported in February 2025 that Oloworaran stressed the N758 billion Federal Government of Nigeria (FGN) bond will fully settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
In February, the DG had said that the approved bond, sanctioned by President Bola Ahmed Tinubu, marks a defining milestone in the nation’s pension administration and a new dawn for pensioners, ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits.
She added that this landmark bond resolves all accumulated pension liabilities, covering Accrued Pension Rights, Pension Increases Since 2007, the Pension Protection Fund (PPF), and University Professors’ Pension Shortfall.
She stressed that with the expected bond issuance, all accrued rights payments and backlogs will be made to the respective Pension Fund Administrators (PFAs), and they can make timely payments to all retirees.
“N253 billion has been allocated to settle outstanding entitlements for retirees of FGN Treasury-funded MDAs, addressing the delays caused by previous funding shortfalls.
“Going forward, accrued pension rights will be included in the monthly personnel cost general warrant, ensuring automatic and timely payments,” she added.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, had disclosed to the press that the approval would allow the Debt Management Office (DMO) to raise the funds needed to settle long-standing pension arrears.
In 2004, the Federal Government of Nigeria enacted the Pensions Reform Act (PRA 2004), which introduced the Contributory Pension Scheme (CPS).
The Act made it mandatory for employers and employees in both the public and private sectors to contribute towards the retirement benefits of employees.
The Act made it mandatory for employers and employees in both the public and private sectors to contribute towards the retirement benefits of employees.
Since then, pension administration in Nigeria has faced challenges such as inadequate funding, poor management, low coverage, lack of awareness, and a weak regulatory framework.