FG to Raise N758bn Pension Bond to Settle Old Pension Debt

The Federal Government is preparing to issue a N758 billion pension bond by late September or early October to settle longstanding pension liabilities, the National Pension Commission (PenCom) has disclosed.

Puch reports that Usman Musa, Director of Contribution and Bond Redemption at PenCom, said the issuance process has already begun following approvals from the Federal Executive Council and the National Assembly, during a press briefing in Abuja.

PenCom’s Director-General, Omolola Oloworaran, described the bond issuance as part of a larger effort dubbed “pension revolution 2.0,” aimed at restoring retirement dignity and resolving delays in pension payments. She also announced the launch of a Pension Industry Leadership Council, intended to improve coordination and oversight in the pensions sector.

These pension liabilities stem largely from obligations under the old Defined Benefit Scheme, introduced before the Contributory Pension Scheme (CPS) was established in 2004. The accumulated debts include arrears owed to retirees for years of wage increases under the old scheme.

In addition, Oloworaran addressed concerns over pensioners’ incomes being eroded by inflation and currency devaluation. She said PenCom is working to expand pension fund investments into alternative and real assets to hedge against these risks and improve returns for contributors.

PenCom also affirmed that arrears under the current Contributory Pension Scheme have been cleared, and retirees are now receiving monthly pension payments on time—provided they follow the prescribed procedures.