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• Projects pension growth in informal sector within 3 years, tightens investment safeguards
From Juliana Taiwo-Obalonye, Abuja
President Bola Tinubu’s pension reforms have restored confidence in Nigeria’s retirement system, with pension assets rising to ₦31.48 trillion and 938,229 new contributors joining the Contributory Pension Scheme (CPS) within two years, the National Pension Commission (PenCom) has said.
Speaking at the Meet the Press briefing organised by the Presidential Media Team at the State House, Abuja, yesterday, PenCom Director-General Omolola Oloworaran said the administration’s interventions had transformed pension reform into “an instrument of justice, an instrument of dignity, and an instrument of economic opportunity.”
According to her, the reforms have increased retirees’ incomes, cleared long-standing pension liabilities and strengthened the Contributory Pension Scheme.
Among the major interventions, she listed the ₦758 billion Federal Government pension bond, the Pension Boost initiative that increased monthly pension payments, and the ₦32,000 consequential adjustment for eligible retirees of treasury-funded Ministries, Departments and Agencies (MDAs).
Oloworaran also disclosed that the first review of pensions under the Nigeria Social Insurance Trust Fund (NSITF) in 21 years increased some pensioners’ monthly payments from ₦18,000 to ₦206,000, with all arrears fully settled. “The dignity of work must be matched by dignity in retirement,” she said, adding that the administration’s achievements demonstrate President Tinubu’s commitment to improving the welfare of workers and retirees.»She revealed that pension assets grew from ₦20.79 trillion to ₦31.48 trillion within 24 months—an increase of more than ₦10.7 trillion—while 938,229 additional contributors joined the pension scheme during the same period.
According to her, monthly pension payments under Pension Boost 1.0 rose by 22 per cent, from ₦12.2 billion to ₦14.9 billion, while the implementation of the new minimum wage adjustment ensured that retirees also benefited from recent wage reforms.
Describing the ₦758 billion Federal Government pension bond as one of the most significant interventions in Nigeria’s pension history, Oloworaran said it cleared outstanding accrued pension rights dating back to 2007, benefiting 957,045 retirees.
She added that accrued pension rights, which previously had a backlog of 21 months, have now moved to a 41-month surplus, describing the development as “a complete reversal.”
Looking ahead, the PenCom boss announced that the commission would roll out the Minimum Pension Guarantee and PenCare, a healthcare support programme for vulnerable retirees, within the next three months.
She also disclosed plans to introduce a Personal Pension Plan for workers in the informal sector and expand a nationwide network of licensed pension agents to deepen pension coverage.
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“The most patient capital in Nigeria should work for Nigeria,” she said, noting that the commission is exploring investment frameworks that would enable pension funds to support infrastructure development in roads, ports, power, healthcare, education and agriculture.»
Responding to questions after her presentation, Oloworaran said Nigerians should begin to see tangible results from efforts to expand pension coverage to informal sector workers within the next two to three years.
She explained that PenCom is currently laying the digital and regulatory foundations needed to extend retirement savings opportunities to market women, artisans, transport workers and other self-employed Nigerians.
«“We are still working on the foundation—the building blocks—that will enable us to expand coverage in that area,” she said, adding that the present focus is on creating infrastructure that will make pension services more accessible nationwide.»
According to her, PenCom has already licensed three pension agents, while applications from four additional agents are undergoing approval.
She explained that although 2026 would largely be devoted to building the necessary framework, the commission expects to begin recording measurable results within the next two to three years.
On the safety of pension assets, Oloworaran assured contributors that PenCom’s investment guidelines remain stringent, with clearly defined asset classes, credit rating requirements and profitability thresholds governing where pension funds may be invested.
She said Pension Fund Administrators (PFAs) are required to comply strictly with the investment regulations, while PenCom conducts routine examinations and spot checks to ensure contributors’ funds are protected.
«“The investment regulations clearly specify the categories of assets in which pension funds may be invested,” she said, stressing that the commission’s oversight framework is designed to safeguard the retirement savings of Nigerians.»
Asked about the continued agitation by the Nigeria Police Force to exit the Contributory Pension Scheme and complaints by some retirees over delayed benefit payments, Oloworaran reiterated PenCom’s commitment to ongoing reforms, stronger compliance measures and broader pension coverage.
She maintained that the commission’s long-term objective is to build a pension system that is safe, inclusive and financially sustainable, while mobilising long-term capital to support national development.
