BY SAM OTUONYE

Nigeria pensioners under the Contributory Pension Scheme (CPS) have heaved a sigh of relief as the federal government has given a three-month timeline to settle their pension arrears.

The federal government through the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, had recently announced the approval to raise N758 billion from the capital market to clear pension liabilities.

Given an update on the development Thursday, the Director General of the National Pension Commission (PenCom), Omolola Oloworaran, at the PenCom/Operators Consultative Forum in Abuja, said the payments would come within three months.

“By my estimation, I’m hoping that within now and the next three months, we will have issued the bond and funds will be released. But I expect it to happen sooner than later,” she said.

She described the intervention by President Bola Ahmed Tinubu as a “new dawn for pensioners,” ensuring that the CPS fulfills its core mandate of providing timely and adequate retirement benefits.

Addressing the approval for the N758 billion bond, Oloworaran stated: “With this approval, and the expected bond issuance that should happen very soon, all approved rights, payments, all backlogs will now be made to the respective PFA, and they will be able to pay payments to all retirees up to date. The bonds will be issued and funds will be released.”

She said that there is N388 billion to clear pension increases that have remained unpaid for nearly two decades, benefiting over 250,000 retirees. N107 billion as the FGN’s first-time contribution to the Pension Protection Fund (PPF), ensuring a living wage for pensioners, particularly low-income earners and another N11 billion to fully implement the provision allowing eligible university professors to retire on their full salary, addressing previous funding gaps.

The DG explained the two-fold impact of the bond issuance: “Number one, the appropriate bond issuance that PFAs will invest in, that can help both corporations in the capital markets. The proceeds from the bond issuance, which, I say PFAs will invest, PFAs and Nigerians will be able to invest in it. And, in addition to that, we all know that interest rates are higher, so you get healthy returns from your investors.”

She further explained, “And then, two, the funds received from these bonds will then go into the various intervention, from pension increases to pension protection funds to professional entitlement and also have good rights. Once these funds are paid, it’ puts money in the hands of ordinary Nigerians. And it will increase the purchasing power of ordinary Nigerians who are retired, who are living on minimum pension, whose pensions cannot support them.”

She cast any doubts about the bond being oversubscribed given its safety, high returns and precedence of recently traded bonds by the CBN, which were fully subscribed.

“I don’t know why it should be under subscribed. Every bond that the CBN has been issuing has not been under subscribe, because interest rates are good. So, if there’s anybody who is doubting and saying, why should I invest in this? I mean, the interest rates are the best you can have them ever.”

The PenCom DG stressed the importance of strategic collaboration to ensure seamless implementation and timely disbursement of payments, prioritizing efficiency, transparency, and accountability.

“This resolution of pension liabilities will restore confidence in the CPS and positions the pension industry for long-term growth. Beyond immediate payments to retirees, it will stimulate the economy, deepen the capital market, and enhance overall financial stability,” she concluded. “With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimizing investment returns. A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can save securely for their future.”

“With this approval, and the expected bond issuance that should happen very soon, all approved rights, payments, all backlogs will now be made to the respective PFAs, and they will be able to pay to all retirees up to date. Actually, the bonds will be issued, and funds will be released,” she stated.

The DG disclosed the next line of action after the clearance of the pension arrears.

“With this burden lifted, the pension industry can now focus on innovation, improved service delivery, and optimizing investment returns. A renewed emphasis will also be placed on expanding the Micro Pension Plan, ensuring that Nigerians in the informal sector can save securely for their future,” she said.