Nigeria funds federal pensions through December 2029
By the AFREEQUE newsroom, based on Punch
Illustrative image · Kampus Production · Pexels · Licence PexelsThe Nigerian government has funded accrued pension rights for enrolled federal civil servants through December 2029, after clearing a 21-month backlog. The National Pension Commission also says retirement benefits are now processed within 48 hours, according to its director-general Omolola Oloworaran.
The Nigerian federal government has increased its advance funding of accrued pension rights for enrolled federal workers to 41 months, after previously having a 21-month shortfall. The advance now covers the rights of serving workers through December 2029, Omolola Oloworaran, director-general of the National Pension Commission (PenCom), said on Wednesday in a speech quoted by Punch.
The time taken to pay retirement benefits has also been reduced to a maximum of 48 hours after retirement, according to Omolola Oloworaran. The federal government has also approved, effective 1 January 2026, an additional benefit equivalent to 100% of final salary for eligible retirees, with some beneficiaries already having received their payment.
The launch of the minimum pension guarantee of 52,500 naira, announced on Tuesday by President Bola Tinubu, provides for an increase for eligible retirees receiving less than this amount. The PenCare programme, health insurance for retirees funded by pension operators and PenCom, is also intended to reduce their medical expenses, according to the director-general.
The announcement comes a day after the launch of the minimum pension guarantee by President Bola Tinubu on 10 November. It also comes on 11 November, when Nigeria announced a contribution by states to the minimum pension.
