FG approves N758bn bond to clear pension arrears in three months
The federal government has approved a N758 billion bond to settle all outstanding pension liabilities under the Contributory Pension Scheme (CPS), promising to clear all arrears within the next three months.
The move, aimed at resolving long-standing pension backlogs, will enable retirees to receive their accumulated payments once the bond is issued.
Speaking at the quarterly PenCom/operators consultative forum in Abuja, the Director General of the National Pension Commission (PenCom), Omolola Oloworaran, expressed confidence that the funds would be disbursed soon.
“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,” Oloworaran stated in a report published by The Nation newspaper.
The announcement follows an earlier disclosure by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who confirmed that the government planned to raise N758 billion from the capital market to clear pension liabilities. With official approval now in place, the bond issuance process is expected to commence immediately.
Oloworaran described the development as a “new dawn for pensioners,” stating that the intervention by President Bola Ahmed Tinubu ensures that the CPS fulfills its mandate of providing timely and adequate retirement benefits.
“With this approval and the expected bond issuance happening very soon, all approved rights and payments, as well as all backlogs, will now be settled. The bonds will be issued, and funds will be released to the respective Pension Fund Administrators (PFAs), who will then pay retirees up to date,” she said.
Out of the total N758 billion, N253 billion has been allocated to settle outstanding entitlements for retirees of Treasury-funded Ministries, Departments, and Agencies (MDAs). This will help address delays caused by previous funding shortfalls.
Once fully subscribed, the bond will clear all accumulated pension liabilities, bringing relief to thousands of retirees awaiting their benefits.
The approval signals a major step in the government’s commitment to financial stability for pensioners, ensuring that retirees receive their dues without further delays.
