FG pays federal workers' pensions until 2029, Official

The Federal Government has now funded the accrued pension rights of federal workers who have not yet retired, extending it through December 2029. This information comes from the National Pension Commission (PenCom), which noted that the government has cleared a previous 21-month funding delay.

PenCom’s Director-General, Omolola Oloworaran, shared this news on Wednesday during the 2026 Pension Correspondents Association of Nigeria Conference in Abuja. She explained that the government has shifted from a 21-month delay to a 41-month funding surplus.

Oloworaran, who was represented by PenCom’s head of corporate communications, Ibrahim Buwai, stated that this change means that the pension rights for federal employees who have enrolled are now fully funded ahead of their retirement.

“We are moving from a position where our full pension rights were 21 months in arrears to where we are today, 41 months in surplus. And 41 months in surplus means that federal government employees who have not yet retired and who have enrolled have had their accrued pension rights paid up to December 2029,” she said.

She also mentioned that delays in the payment of retirement benefits are now mostly a thing of the past. Benefits are now being processed within 48 hours of retirement.

“The issue of delays in the payment of pensions has now become history, and now pensions are being paid within a maximum of 48 hours from retirement,” she said.

This 48-hour processing time applies only to retirement benefits under PenCom’s arrangements. It does not mean that every pension payment or outstanding debt in the country will be settled within that time frame.

Oloworaran also highlighted the launch of the PenCare healthcare programme and the N52,500 minimum pension guarantee by President Bola Tinubu on Tuesday.

PREMIUM TIMES had earlier reported on the start of these two initiatives. They aim to provide more support for retirees, especially those with low pension income and little money for medical costs.

According to Oloworaran, PenCare will help cut down pensioners’ healthcare costs, allowing them to use more of their monthly income for other needs.

She explained that pension operators and PenCom fund the programme, which has an independent board of trustees led by the commission’s first director-general, Muhammad Ahmad.

Regarding the minimum pension guarantee, Oloworaran said that retirees earning below N52,500 monthly will have their pensions raised to this amount. Some beneficiaries even received payment alerts during Tuesday’s launch.

Nana Musa, the President of the Pension Correspondents Association of Nigeria, encouraged journalists to promote accountability and help the public understand pension reforms through accurate reporting.

Ms Musa said that pension reporting should help Nigerians grasp the reforms and what they mean for contributors and retirees.

Oloworaran also revealed that the Federal Government has approved extra exit benefits equal to 100 percent of terminal emoluments for eligible retirees, starting from 1 January 2026.

“The Federal Government has just approved the payment of 100 percent of terminal emoluments as additional exit benefits,” she said.

She added that eligible retirees who left service in 2026 and submitted the required documents have received payment. This news comes as pensioners continue to call for better retirement benefits and broader coverage of additional payments for those who retired before this new approval.