Late Tuesday, the National Pension Commission (PenCom) stated that the federal government has released an additional ₦22 billion to settle accrued pension rights for retirees in Ministries, Departments, and Agencies (MDAs) supported by the federal treasury.
The money was deposited into the Central Bank of Nigeria’s Retirement Benefits Bond Redemption Fund Account after being distributed by the Office of the Accountant General of the Federation. Verified retirees who enlisted in the Contributory Pension Scheme between October 2023 and January 2024 will receive payments using them.
PenCom verified in a social media statement that the payout also covers accrued entitlements owed to departed workers, and that the relevant Retirement Savings Accounts have already been credited by Pension Fund Administrators.
With this most recent payment, ₦66 billion will be allotted for accrued pension rights in the fiscal year 2024. Although pension rights campaigners criticized the government’s decision, in December 2024, it provided ₦44 billion to fulfill rights owed to pensioners between March and September of the previous year.
A non-governmental group 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 rather than portraying the payments as optional acts of kindness, the government should concentrate on fulfilling its legal duties under the Pension Reform Act.
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PenCom, however, has emphasized the importance of efficiency and instructed Pension Fund Administrators to speed up the payout procedure for all qualified retirees. In order to access their benefits, retirees are encouraged to finish the necessary paperwork with their PFAs.
Retirees and advocacy groups have both criticized Nigeria’s pension system for its ongoing problems with the delay in paying out accrued pension rights. PenCom has announced that it is working with federal authorities to create a more sustainable system to guarantee that pensioners get their benefits on time.
The commission added in its statement, “This release is part of our ongoing commitment to ensure that retirees are not subjected to undue hardship while they wait for their benefits.”
Many people consider the Contributory Pension Scheme, which was implemented in 2004, to be a crucial reform for ensuring the financial stability of Nigerian workers. However, economic obstacles like inflation and currency devaluation are reducing pensioners’ purchasing power, underscoring the continuous difficulties in protecting retirement funds.
Although pensioners applauded the move on Tuesday, it highlights the larger systemic problems with Nigeria’s pension system that still need to be fixed.
Important details: Recipients of the Payment: The payout is available to retirees from Ministries, Departments, and Agencies (MDAs) who receive Treasury funding and who were enrolled and validated between October 2023 and January 2024. The payout also includes the accrued rights of some deceased employees under the CPS. The allotted funds have been credited to the beneficiaries’ Retirement Savings Accounts (RSAs) by Pension Fund Administrators (PFAs). Total Payments in 2024: With this most recent announcement, a total of ₦66 billion has been paid out for accrued pension rights under the 2024 Appropriation Act. To pay accrued pension rights for pensioners from March to September 2023, including deceased retirees, the Nigerian government already released ₦44 billion in December 2024. Instructions for PFAs on Payment: To guarantee prompt access to their pension funds, PenCom has instructed PFAs to expedite the payment procedure for all verified retirees. To get their benefits, retirees must fill out the relevant paperwork with their PFAs. Campaign and Criticism of Delayed Payments: The Nigerian government has faced criticism from the Centre for Pension entitlements Advocacy for its tardy settlement of accumulated entitlements, citing the inadequacy of the selected payouts. It demanded that instead of taking a “charitable employer” approach to accruing pension entitlements, the government execute its responsibilities under the Pension Reform Act (PRA). Effects on pensioners: It is anticipated that the payout will ease the financial strain that pensioners who are waiting on their pension installments are experiencing. Nonetheless, the advocacy groups’ critique emphasizes the necessity of a more thorough and uniform method of meeting accrued pension obligations.
The Work Done by PenCom: PenCom keeps pushing for better procedures and policy changes to guarantee that retirees receive their benefits on time and without undue stress. The commission has pledged to collaborate with the government to establish a long-term structure for prompt payments.
This recent event highlights how crucial it is that the government maintain its commitment to paying pensions and resolving the issues that pensioners encounter under the Contributory Pension Scheme.
