Retirees begin receiving benefits as FG disburses N758bn pension arrears

Retirees have begun receiving outstanding pension benefits under the Federal Government’s N758 billion pension intervention, with some beneficiaries receiving their payments symbolically at the inaugural National Pension Leadership Summit in Abuja on Thursday.

Secretary to the Government of the Federation (SGF), Senator George Akume, disclosed this at the summit, saying the funds were approved earlier to settle accrued pension rights and strengthen pension protection for retirees.

Some beneficiaries received ceremonial cheques during the event to symbolise the receipt of their entitlements as disbursement continues.

Akume said the intervention was aimed at addressing outstanding pension obligations that had left retirees waiting for years to receive benefits legally due to them.

“A pension is not a favour granted by government. It is the wage earned, deferred and held in trust. It is a promise. And this administration has resolved that the promise will be kept,” he said.

He described the intervention as an act of restitution for Nigerians who had served the country, adding that the administration was determined to ensure that retirees received their entitlements.

The SGF also announced plans to commence the implementation of the Minimum Pension Guarantee provided for under the Pension Reform Act 2014, alongside a national retiree well-being programme.

According to him, the programme will begin by providing low-income retirees with access to essential healthcare.Akume said the initiatives marked a shift towards a pension system that not only provides retirement income but also protects the dignity and welfare of senior citizens.

He added that a strong pension system would mobilise long-term domestic savings, deepen financial markets, support productive investments and contribute to sustainable national development.

The administration, he said, recognised pensions as both a social protection imperative and a strategic pillar of economic transformation under the Renewed Hope Agenda.

Also, the Head of the Civil Service of the Federation, Abel Olumuyiwa Enitan, said the government’s efforts to improve pensioners’ welfare were in furtherance of President Bola Tinubu’s Renewed Hope Agenda.

He said retirees deserved recognition and appreciation for their contributions to national development.

“Our retirees have worked, they have toiled and have contributed to the building of this nation. So they deserve to be recognised, rewarded and appreciated,” he said.

Enitan assured pensioners that their welfare would improve under the current leadership of the National Pension Commission (PenCom).

He said retirement should be a transition to a better life rather than a period of hardship or punishment, noting that retirees should be able to enjoy their time while continuing to receive their monthly entitlements.

In her remarks, the Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, stressed the need for a pension system that delivers tangible benefits to retirees rather than merely expanding in size.

She said Nigeria must begin preparing for an ageing population, noting that the number of senior citizens would increase significantly over the next two decades.

Oloworaran observed that although Africa currently has one of the youngest populations globally, the continent must prioritise savings and investments to avoid a future in which its population grows older without adequate financial security.

She said millions of Nigerians now had personal retirement savings accounts in their names, while retirement benefits were being paid within 48 hours, eliminating the prolonged delays that previously characterised the process.

The PenCom boss added that further reforms were underway to improve the efficiency of the pension system and expand its coverage.

She, however, expressed concern that many private-sector workers were retiring into poverty, urging employers and employees to participate fully in the contributory pension scheme.

According to her, a pension system that covers only workers on government payrolls cannot be considered a truly national system.

She stressed that the system must be expanded to provide adequate protection for retirees across the country, including private-sector workers.

Oloworaran said broader participation, improved savings habits and sustained reforms were essential to ensuring that Nigerians could retire with financial security and dignity.—

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