The National Pension Commission (PenCom) has announced that the Federal Government has released an additional N22 billion through the Office of the Accountant-General of the Federation to settle accrued pension rights for retirees under the Contributory Pension Scheme. This disbursement, which targets retirees in Ministries, Departments, and Agencies (MDAs), covers the period between October 2023 and January 2024.
Pension Funds Transferred to Central Bank of Nigeria
According to PenCom’s statement released on Instagram on Tuesday night, the funds have been deposited into the Retirement Benefits Bond Redemption Fund Account at the Central Bank of Nigeria (CBN). These funds are allocated to cover the accrued pension rights of verified retirees from Treasury-funded MDAs, with some deceased employees also included in the payment.
Retirees within the stated period, who have been properly verified and enrolled, are eligible for this disbursement. PenCom noted that the funds have already been credited to the retirees’ accounts through their respective Pension Fund Administrators (PFAs).
Total Disbursement Reaches N66bn
With the release of this N22 billion, the total amount disbursed from the 2024 appropriation for accrued pension rights now stands at N66 billion. PenCom emphasized the importance of retirees contacting their PFAs to complete the necessary documentation for accessing their retirement benefits.
The pension regulatory body has also instructed PFAs to expedite the payment process for all verified retirees to ensure smooth and timely disbursement.
Past Disbursements and Criticism
In December 2024, the Federal Government released N44 billion for the payment of accrued pension rights for retirees between March and September 2023, as well as some deceased retirees. However, the Centre for Pension Rights Advocacy criticized the selective payment of these accrued rights. They condemned the government for adopting a “benevolent employer” stance instead of fulfilling its legal obligation to settle pension rights promptly.
The government’s repeated delays in fully honoring these payments have raised concerns among retirees and advocacy groups, urging more efficient processes for the release of pension funds.
