The National Pension Commission (PenCom) has commenced the disbursement of the N758 billion bond approved by the Federal Government to clear outstanding pension liabilities. This move is part of a broader strategy to future-proof the Nigerian pension industry, solidifying its role in national stability and long-term development.
PenCom’s 365 Days Scorecard: Achievements and Progress
PenCom’s Director-General, Ms Omolola Oloworaran, announced the bond disbursement during her 365 Days Scorecard presentation at the Pension Revolution Summit held in Abuja on Tuesday.
The bond, approved by President Bola Tinubu in February 2025, has been cashed, and over N600 billion has already been disbursed to settle outstanding pension obligations.
Pension Assets Grow to N27 Trillion
Ms Oloworaran shared that pension assets in Nigeria have surged to about N27 trillion, a testament to the success of the Pension Revolution 2.0 reforms.
These reforms, introduced over the past year, are designed to make the pension industry more resilient, efficient, and inclusive, thus ensuring future growth and stability.
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“We have made bold decisions and implemented structural reforms to ensure the pension industry is future-proofed. This has been a transformative year for us, with significant changes in governance, digital transformation, and regulatory frameworks,” Ms Oloworaran stated.
Pension Revolution 2.0: A Comprehensive Reform Agenda
The Pension Revolution 2.0 initiative is the most comprehensive pension reform agenda in Nigeria since the Pension Reform Act of 2004.
The reforms include new regulations, stricter supervision, digital upgrades, and industry realignment, all aimed at enhancing pension governance and increasing the industry’s contribution to national development.
As part of this revolution, PenCom has also focused on improving benefit adequacy. The Pension Post 1.0, introduced earlier this year, has already added N2.68 billion to monthly pension payments for retirees under the Contributory Pension Scheme (CPS) since June 2025.
Digitizing Pension Processes for Greater Efficiency
Ms Oloworaran highlighted PenCom’s advancements in technology, with the full automation of critical pension processes. Key milestones include the automated pension plan certificates and an upgraded platform for benefit processing and contribution remittance.
These upgrades significantly enhance the efficiency and accessibility of the pension system for both contributors and retirees.
Expansion of the Personal Pension Plan for Financial Inclusion
A cornerstone of PenCom’s reform agenda is the Personal Pension Plan (PPP), a rebranding and restructuring of the Micro Pension Plan. The PPP aims to engage informal sector workers, including artisans, traders, gig workers, and market women, by simplifying the onboarding process.
Ms Oloworaran explained, “Onboarding is now as simple as providing your name. This new initiative directly addresses the needs of Nigeria’s informal sector, which represents a significant portion of the workforce.”
Expanding Digital Enrollment and Employment Opportunities
In a bid to further enhance coverage, PenCom has introduced accredited pension agents to help expand digital enrolment and pension coverage across the country.
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These agents are also viewed as an employment strategy, offering job opportunities and contributing to financial inclusion.
“We believe that with this initiative, thousands of young Nigerians will be recruited and trained to support pension expansion. This is a significant step toward financial inclusion and job creation,” said Ms Oloworaran.
Pension Recovery and Enforcement: A Stronger PenCom
PenCom has also made significant strides in pension recovery and enforcement. The commission recovered N32.27 billion from defaulting employers, including N15.87 billion in principal contributions and N16.40 billion in penalties, from June 2012 to September 2025.
In Q3 2025, the Commission recovered N2.06 billion from 49 defaulting employers, reflecting a strong commitment to ensuring compliance.
State-Level Compliance and Police Pension Plight
Despite these gains, PenCom continues to face challenges in state-level compliance with the Contributory Pension Scheme (CPS). Currently, only 8 out of 36 states have fully complied with the CPS. PenCom is working closely with state governments to ensure wider adherence to the pension law.
In addition, the Nigeria Police Force has yet to fully exit the CPS, with N132 billion paid out of the N338 billion owed to them, constituting about 40% of public service pensioners. Ms Oloworaran assured that PenCom is actively working to resolve these issues and ensure fair treatment for police pensioners.
Award for Outstanding Pension Reporting
The highlight of the event was the presentation of an award to Mr James Enejo, a ThisDay reporter, for his outstanding reporting on the pension industry. His diligent coverage of the sector has contributed significantly to raising awareness about pension reforms in Nigeria.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.
