In a landmark move set to transform the lives of Nigeria’s retired federal workers, President Bola Ahmed Tinubu has approved a ₦758 billion bond to clear long-standing pension arrears and introduce a ₦32,000 monthly minimum pension for retirees under the Contributory Pension Scheme (CPS).
The decision, welcomed nationwide, brings long-overdue relief to thousands of retirees—many from critical sectors such as education, healthcare, security, and the Armed Forces—who have endured years of delayed payments and inadequate pensions.
According to the National Pension Commission (PenCom), the new policy ensures that every federal retiree under the CPS will now receive at least ₦32,000 monthly, irrespective of their individual savings. This follows the enactment of the National Minimum Wage Amendment Act 2024 and addresses the long-ignored Consequential Adjustments first proposed in 2007.
Breaking down the ₦758 billion bond, PenCom Director-General Omolola Oloworaran stated:
₦253 billion will be used to settle accrued pension rights for workers employed before the CPS began in 2004.
₦387.5 billion is allocated to cover pension increases dating back nearly two decades.
₦107 billion will go to the Pension Protection Fund to support the most vulnerable retirees.
“This initiative is about restoring dignity,” Oloworaran said. “Every retiree will now have a safety net. The days of endless delays and broken promises are over.”
With the bond issuance underway, Pension Fund Administrators (PFAs) will soon begin crediting retirees’ accounts directly, ensuring prompt access to their entitlements.
For Nigeria’s aging population of federal retirees, this intervention is being celebrated as a long-awaited step toward justice, stability, and financial peace of mind.