Late Tuesday, the National Pension Commission (PenCom) stated that the federal government has liberated an extra ₦22 billion to settle accrued pension rights for retirees in Ministries, Departments, and Agencies (MDAs) supported by the federal treasury.
Through the Office of the Accountant General of the Federation, the money was distributed and placed in the Central Bank of Nigeria’s Retirement Benefits Bond Redemption Fund Account. They will be used to compensate verified retirees who enrolled in the Contributory Pension Scheme between October 2023 and January 2024.
PenCom verified in a social media statement that the payout also covers payments for accrued entitlements owed to deceased employees, and that the relevant Retirement Savings Accounts have already been credited by Pension Fund Administrators.
The entire amount allotted for accrued pension rights in the fiscal year 2024 has increased to ₦66 billion with this most recent payout. The government issued ₦44 billion in December 2024 to satisfy rights owing to pensioners between March and September of the previous year, however pension rights advocates criticized the decision.
A non-governmental organization dedicated to the welfare of retirees, the Center for Pension Rights Advocacy, criticized the government for what it called “selective” payments. The group contended that instead of portraying the payments as optional acts of kindness, the government should concentrate on fulfilling its legal duties under the Pension Reform Act.
But, highlighting the importance of efficiency, PenCom has instructed Pension Fund Administrators to speed up the payout procedure for all qualified retirees. It is recommended that in order to collect their benefits, retirees submit the necessary paperwork with their PFAs.
Retirees and advocacy organizations have both criticized Nigeria’s pension system for its ongoing problems with the delay in paying out accrued pension rights. In order to guarantee that pensioners receive their benefits on time, PenCom has stated that it is working with federal authorities to create a more sustainable system.
“We are committed to preventing retirees from experiencing undue hardship while they wait for their benefits, and this release is part of that commitment,” the commission stated in its statement.
Introduced in 2004, the Contributory Pension Scheme is considered a crucial reform for ensuring the financial stability of Nigerian workers. The continued difficulties in protecting retirement funds are highlighted by the fact that economic headwinds like as inflation and currency devaluation continue to reduce retirees’ purchasing power.
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The announcement on Tuesday highlights the larger systemic problems that still exist in Nigeria’s pension system, even if retirees applauded it.
Crucial Information: The recipients of the payment are: For this payment, retirees from Ministries, Departments, and Agencies (MDAs) that receive Treasury funding and who were enrolled and validated between October 2023 and January 2024 qualified. The payout also includes the rights that some deceased employees obtained under the CPS. Pension Fund Administrators (PFAs) have credited the allotted amounts to the beneficiaries’ Retirement Savings Accounts (RSAs). Total Amount Disbursed in 2024: The entire amount paid out for accrued pension rights under the 2024 Appropriation Act now stands at ₦66 billion according to this most recent announcement. The Nigerian government earlier granted ₦44 billion in December 2024 to pay accrued pension rights for retirees, including deceased retirees, who were born between March and September 2023. Payment Guidelines for PFAs: To ensure that all verified retirees receive their pension benefits on schedule, PenCom has instructed PFAs to expedite the payment procedure. For retirees to be eligible for benefits, they must finish the relevant paperwork with their PFAs. The Centre for Pension Rights Advocacy has repeatedly criticized the Nigerian government for its tardiness in fulfilling accumulated rights, calling the selective reimbursements insufficient. It demanded that the government fulfill its responsibilities under the Pension Reform Act (PRA) instead of taking a “charitable employer” approach to accruing pension entitlements. Repercussions for pensioners: It is anticipated that the payout will ease the financial strain that pensioners experience while they wait for their pension payments. But the advocacy groups’ criticism shows that a more thorough and uniform method of meeting accrued pension obligations is required.
The Work of PenCom: PenCom keeps advocating for better procedures and policy changes to guarantee that retirees receive their benefits on time and without undue stress. The government and the commission have agreed to collaborate in order to develop a long-term structure for on-time payments.
The significance of the government’s ongoing commitment to upholding pension responsibilities and resolving the issues retirees encounter under the Contributory Pension Scheme is highlighted by this recent development.
