Pension Commission Confirms Over 844,000 Retirees Now Accessing Benefits

The National Pension Commission (PenCom) has disclosed that more than 844,000 retirees across Nigeria are currently receiving retirement benefits under the Contributory Pension Scheme (CPS). According to the Commission, the figure represents both those who receive monthly pensions and others who have collected their lump-sum entitlements. This marks a significant milestone for the nation’s pension industry, which has grown remarkably in recent years in terms of assets, coverage, and reforms aimed at ensuring retirees live more comfortably after decades of active service.

The Director-General of PenCom, Omolola Oloworaran, explained that the pension sector has moved from a troubled history where retirees often experienced severe delays and non-payment of benefits, to a more transparent and structured system where payments are more consistent. She noted that the growth of pension assets to over ₦25 trillion has given the system the capacity to not only support retirees but also to contribute to national development through strategic investments.

Out of the 844,000 retirees benefiting under the scheme, over 552,000 receive monthly pensions, while about 291,735 have taken lump-sum payments. Beyond retirees, PenCom highlighted that the scheme has successfully registered over 10 million contributors, cutting across civil servants, private sector workers, artisans, and even self-employed individuals enrolled under the Micro Pension Plan. The Commission said this expansion reflects increasing confidence in the scheme and broader acceptance among Nigerians who now see retirement savings as a necessity rather than an option.

PenCom also unveiled a number of reforms aimed at strengthening the system and improving the welfare of retirees. One of the key programmes is the Pension Boost 1.0, which targets retirees on the Programmed Withdrawal plan. The initiative has so far benefited more than 241,000 retirees by improving their monthly pension payouts. Disbursements under this programme have risen from about ₦12.1 billion monthly to nearly ₦14.8 billion as at June 2025, providing more financial relief for pensioners battling inflation and high living costs.

Another reform introduced by PenCom ensures that retirees begin to receive pension payments immediately upon retirement. This reform, implemented in July 2025, links disbursements to the same monthly cycle used by the Ministry of Finance for salary payments. As a result, retirees no longer face delays between leaving service and accessing their entitlements, a problem that had previously caused untold hardship for many.

The Commission further revealed that gratuity payments are being reintroduced for federal civil servants, in line with provisions of the Pension Reform Act 2014. This is expected to provide additional financial cushioning for workers transitioning into retirement. In the same vein, PenCom disclosed that a bond of ₦758 billion has been approved to settle longstanding pension liabilities, including accrued rights and adjustments dating back to 2007.

On governance and regulation, PenCom said it has tightened the rules for Pension Fund Administrators and custodians, particularly in the areas of capital requirements and corporate governance standards. The move, according to the Commission, is to safeguard contributors’ funds and ensure the sustainability of the pension system. Five new regulatory frameworks have also been introduced under the banner of Pension Revolution 2.0, including a whistle-blowing policy on pension assets designed to enhance transparency and accountability.

Perhaps one of the most anticipated initiatives is the planned rollout of free health insurance for low-income retirees. PenCom said this scheme will take effect later in the year, providing healthcare coverage that complements financial benefits. The plan is expected to significantly ease the burden on pensioners, many of whom struggle to afford medical care in their old age.

Despite these achievements, PenCom acknowledged that challenges remain. One major area of concern is the full implementation of the CPS across all states and organisations. While federal institutions have largely complied, many state governments and private employers still lag in enrolling their workers, leaving a significant number of Nigerians outside the safety net of the scheme. The Commission also noted that public skepticism remains, largely due to the historical failures of past pension systems which left many retirees destitute.

A particular challenge has been the settlement of accrued rights for workers who were already in service before the introduction of the CPS. PenCom stated that these arrears have now been cleared up to September 2025, with efforts ongoing to completely eliminate the backlog. The Commission described this as a historic achievement, adding that for the first time in decades, pension payments are now current and free from the heavy arrears that once plagued the system.

Looking ahead, PenCom said its focus will be on deepening reforms under Pension Revolution 2.0, which aims to modernize the sector, strengthen protection for contributors against inflation and economic instability, and expand the scheme to capture more Nigerians. President Bola Tinubu has also intervened directly in pension matters, directing an expedited rollout of free healthcare for retirees and calling for accelerated implementation of pension increases to shield pensioners from harsh economic conditions.

As Nigeria’s pension industry continues to grow in assets, reach, and credibility, PenCom has stressed that it is determined to ensure that retirees receive not just timely payments but also the dignity and security they deserve in their later years. The Commission said it remains committed to rewriting the history of pensions in Nigeria by moving permanently away from the era of neglect to one of sustainability, accountability, and reliability.