The Federal Government has funded the accrued pension rights of enrolled federal employees up to December 2029, ending a previous 21-month funding backlog, the National Pension Commission (PenCom) has disclosed.
PenCom Director-General, Omolola Oloworaran, made the disclosure on Wednesday at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja.
Oloworaran, who was represented by the commission’s Head of Corporate Communications, Ibrahim Buwai, said the government had moved from a position of owing 21 months in accrued pension rights to recording a 41-month funding surplus.
She explained that the development means federal employees who are enrolled in the pension scheme but have yet to retire now have their accrued pension rights funded up to December 2029.
According to her, delays in processing retirement benefits have also been significantly addressed, with pension payments now being processed within a maximum of 48 hours after retirement.
“The issue of delays of payment of pension has now become history, and now pensions are being paid within a maximum of 48 hours from retirement,” she said.
The PenCom chief also highlighted two major initiatives recently introduced by the Federal Government: the PenCare health insurance programme for retirees and a N52,500 minimum pension guarantee launched by President Bola Tinubu.
She said PenCare was designed to reduce retirees’ healthcare expenses, enabling them to use a greater portion of their monthly pension payments for other essential needs.
The programme, according to her, is funded by pension operators and PenCom and will be overseen by an independent board of trustees chaired by the commission’s pioneer Director-General, Muhammad Ahmad.
On the minimum pension guarantee, Oloworaran said eligible retirees currently receiving less than N52,500 would have their monthly pensions increased to the guaranteed minimum, noting that some beneficiaries had already received payment alerts during Tuesday’s launch.
She further disclosed that the Federal Government had approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, with the policy taking effect from January 1, 2026.
The latest measures represent a significant policy development in Nigeria’s contributory pension system, particularly in addressing retirement funding obligations, healthcare costs and the financial security of pensioners.
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