FEDERAL GOVERNMENT CLEARS N758BN PENSION ARREARS, SETTLES 957,045 BENEFICIARIES

National Pension Commission announces comprehensive liquidation of legacy liabilities dating back to 2007, alongside new administrative policies to streamline retirement payouts nationwide

The Federal Government has successfully liquidated inherited pension liabilities accumulated since 2007, deploying a N758 billion intervention bond to clear longstanding backlogs that affected 957,045 beneficiaries across the country.  

The milestone development was disclosed by the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, during the 2026 PenCom Media Conference held in Lagos.  

According to the commission, the comprehensive financial intervention resolved legacy obligations that had passed through successive administrations over nearly two decades.  

Oloworaran noted that beyond clearing the inherited debts, the administration has credited accrued pension rights for federal employees scheduled to retire up to December 2029 following rigorous verification exercises.  

As part of sweeping structural reforms, PenCom has also introduced a Zero Waiting Time Policy designed to synchronize retirement benefit disbursements with monthly salary cycles, effectively reducing processing durations from as long as 21 months down to 48 hours.  

Furthermore, statutory provisions were invoked to review pensions for retirees under the defunct Nigeria Social Insurance Trust Fund (NSITF), resulting in an average 1,173 percent increase for over 2,100 beneficiaries alongside the disbursement of outstanding arrears.  

Labor representatives and economic analysts have commended the comprehensive settlement, describing it as a vital stride toward restoring absolute confidence in the country's contributory pension framework and safeguarding post-service welfare.