The Federal Government has pledged to settle outstanding pension arrears, releasing approximately 25% of the 2024 pension budget thus far. Finance Minister Wale Edun made the assurance on Tuesday after retirees under the Contributory Pension Scheme protested at the Ministry of Finance in Abuja.
Edun revealed that, of the N88 billion allocated for pension arrears this year, N22 billion has already been disbursed. He assured retirees that the remaining funds would be distributed by year-end, with payments starting next week.
“We acknowledge the backlog in contributions and are committed to paying the remaining N66 billion within the current budget cycle. For a long-term solution, we’re exploring options in the capital market to fully address the backlog,” Edun explained.
The minister’s remarks followed complaints from retirees about prolonged delays in pension payments, which have caused severe financial strain. National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme, Sylva Nuatawu, highlighted additional concerns, including the need for pension adjustments in line with the recent minimum wage amendment.
Nuatawu underscored the backlog of 18 months’ accrued rights and a N32,000 pension increment yet to be implemented. He stressed that retirees have faced severe hardship due to these delays, calling for the government to take urgent action.
The FG’s commitment follows increasing nationwide concerns over pension backlogs, with both federal and state liabilities now totaling over N193 billion. While several states have begun clearing these backlogs, Edun affirmed that the FG is prioritizing the remaining N88 billion owed under the Contributory Pension Scheme as a step towards easing the retirees’ financial burdens.
