LunagisthubNigerian Government Approves ₦758 Billion Bond to Clear Pension Backlog
The Federal Government has taken a significant step towards addressing the long-standing pension liabilities owed to retirees. According to the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, the government has approved ₦758 billion in bonds to offset pension arrears, including increases owed since 2007.The approved bonds will be used to settle long-standing pension liabilities, providing relief to vulnerable pensioners.
Pension Increases:Over 241,000 retirees will benefit from pension increases, raising monthly payments from ₦12.15 billion to ₦14.83 billion, effective from June 2025.
-Elimination of Waiting Time:PenCom has eliminated waiting time for pension payments, ensuring that retirees access their benefits immediately after retirement.
Reforms and Initiatives
The National Pension Commission has implemented several reforms to enhance awareness and deepen understanding of the Contributory Pension Scheme (CPS) among retirees and other stakeholders. Some of the key initiatives include:
-Proposed Reintroduction of Gratuity: A framework has been developed to restore gratuity benefits for federal workers under the CPS, in line with Section 4(4) of the Pension Reform Act (PRA) 2014.
Impact on Retirees
The approval of the ₦758 billion bond is expected to bring relief to retirees who have been waiting for their pension payments. The pension increases and elimination of waiting time will also improve the financial well-being of retirees.
The Nigerian government’s approval of the ₦758 billion bond is a significant step towards addressing the pension backlog and improving the lives of retirees. The reforms and initiatives implemented by PenCom aim to enhance awareness and understanding of the CPS, ensuring that retirees receive their benefits in a timely and efficient manner.
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