Pension Delays End as PenCom Delivers Fast-Track Payments for MDA Retirees
Nigeria’s pension landscape has entered a new phase of stability and credibility as the National Pension Commission (PenCom) declares that the long, painful era of delayed pension benefits for retirees of treasury-funded Ministries, Departments and Agencies (MDAs) has finally come to an end.
In an exclusive update, PenCom affirms that sustained reforms, a strengthened remittance architecture, and improved coordination with the Federal Government have now placed pension payments on a predictable, fast-track cycle—restoring confidence for thousands of retirees under the Contributory Pension Scheme (CPS).
According to Mr. Ibrahim Buwai, Head of Corporate Communications at PenCom, the Commission has now achieved near-perfect promptness, ensuring retirees receive their accrued pension rights within the same month they exit service.
Fast-Track Pension Processing—From Months of Waiting to Same-Month Payments
Buwai revealed that PenCom has already completed payments for all November retirees, and December retirees will be settled on or before December 15, ensuring they access their benefits ahead of the festive period.
This marks a dramatic turnaround from past years when pension delays stretched into months—sometimes years—eroding retiree dignity and exposing pensioners to unnecessary hardship.
FG’s N758 Billion Bond Release Creates Fiscal Stability in the Pension System
A major catalyst in achieving this milestone was the Federal Government’s release of ₦758 billion in bond proceeds to settle long-outstanding pension liabilities dating back to 2007, including arrears arising from pension increases.
The injection of funds, coupled with PenCom’s renewed enforcement strategy, has helped stabilise the system, clearing historical backlogs and enabling pensions to now flow seamlessly.
Reforms Beyond Payments — PenCom Tightens the Net on Defaulting Employers
Beyond remitting accrued rights, PenCom is shifting focus to another long-standing challenge: employers failing to remit employee pension deductions to their Pension Fund Administrators (PFAs).
To address this, the Director-General of PenCom, Ms. Omolola Oloworaran, has signed a powerful Memorandum of Understanding (MoU) with the Independent Corrupt Practices Commission (ICPC).
Under the new enforcement regime:
- ICPC will retrieve all unremitted pension contributions
- Defaulters will face strict penalties under the law
- Recovered funds will be paid directly into affected Retirement Savings Accounts (RSAs)
- Employers will face sanctions for violating pension laws
This is a major step in protecting workers’ rights and strengthening trust in the CPS framework.
A More Secure Future for Nigerian Workers and Retirees
With fast-tracked pension payments now entrenched and a strong regulatory crackdown on remittance offenders, PenCom is positioning the Nigerian pension system for greater stability, transparency, and improved retirement outcomes.
For retirees in treasury-funded MDAs, the message is clear:
“Your pension delay nightmare is now history.”
