The Federal Government, through the National Pension Commission (PenCom), has paid outstanding pension accrued rights of its employees up to March 2025, paving the way for affected retirees to access their monthly pensions.

The recent payment, which brought the 21-month backlog to three at the end of March 2025, brings the total accrued rights payout to N1.211 trillion for 268,074 retirees of Treasury-Funded MDAs.

Accrued rights are accumulated pension benefits for employees of Treasury-Funded Ministries, Departments and Agencies (MDAs) of the federal government from their date of first employment up to June 30, 2004.

Omolola Oloworaran, director general, PenCom, who disclosed this, said the end of pension arrears is very near.

She said after years of anxiety and injustice, we are finally breaking the chains of pension backlogs. “Thanks to the decisive leadership of President Bola Amed Tinubu, we have witnessed stable and consistent releases of funds for accrued rights since November last year.”

“Previously, there was a backlog of 21 months, but within the past seven months, the Federal Government has released substantial funds, reducing the backlog to just three months.”

“As of today, retirees up to March 2025 have been paid their pensions. They have gotten their benefits and are now receiving their money. We are just steps away from eliminating pension arrears, a historic milestone that resets the credibility of the CPS. For once, the word retirement will not mean fear and uncertainty, but dignity and predictability, the DG said.

Oloworaran stated that President Tinubu’s approval of the N758 billion bond to clear pension liabilities is further proof that this administration is rewriting the retirement narrative in Nigeria.

“Under his leadership, retirement will no longer be a sentence; it will be a well-deserved reward for many years of hard work by our retirees who have given a lot in building our great nation.”

According to her, PenCom is building a pension system that is transparent, inclusive, and unshakable. “We are restoring faith in retirement. We are rewarding work with dignity, and we are doing so with unrelenting urgency.”

Giving detail performance of the pension industry, PenCom disclosed that pension assets as at March 2025 stands at N23.33 trillion, representing an increase of N820 billion compared to the last quarter ended 31st December 2024, which was N22.51 trillion, ascribing the growth to additional contributions by employers and the investment income generated by the Pension Fund Administrators (PFAs).

The breakdown of these assets as of 31st March shows that RSA funds accounted for 77 percent; existing schemes 12 percent, and closed pension funds accounting for 11 percent.

Majorly, these assets are invested in federal government securities, which accounted for 62 percent of the total investments, followed by domestic ordinary shares with 11.02 percent, and money market instruments, which accounted for 8.91 percent.

With regard to the performance of the fund, the industry portfolio reported an annualised year-to-date performance of 19.29 percent, and according to the PenCom, raises concerns about real returns when adjusted for inflation, potentially resulting in negative returns on investments.

Regarding Benefit Payments, retirees can choose between a Programmed Withdrawal administered by PFAs and an Annuity administered by life insurance companies.

Retirees under Programmed Withdrawal, totalling 383,608, have so far received lump sum payments of N1.284 trillion, while monthly pension payments stand at N22.464 billion.

Whereas retirees under the life annuity option numbering 152,671 have received lump sums totalling N411.1 billion, while monthly annuity payments stand at N301.456 billion, according to data released by PenCom. (BusinessDay)