The National Pension Commission (PenCom) has stated that it has so far recovered N4.billion pension from defaulting employers from January to November 2025.

The Commission also reported stronger compliance across the industry following the introduction of stricter pension clearance requirements as contribution recoveries rose to N4.04 billion between January and November 2025, representing a 180% increase compared to the full year 2024

The Director General of PenCom, Omolola Oloworaran made the disclosure in Abuja at the Pension Revolution Summit

“From January to November this year, total pension recoveries reached N4.04 billion Naira, compared to a total of N1.44 billion for the whole of 2024. This represents an increase of 180%, that’s almost 200%.

“But most notably, N2.06 billion was recovered in the third quarter of 2025 alone. That is equaling the total amount that was recovered in 2024. And we also saw a similar shift, evident in compliance behavior,” the DG said

PenCom also provided a detailed breakdown of the N758 billion, disbursed by the federal government to settle long-standing pension liabilities, describing the intervention as a major boost to retirement security and a signal of renewed fiscal credibility.

The Commission said the funds addressed pension obligations dating back to 2007 and marked one of the most significant pension interventions in Nigeria’s history to settle outstanding pension liabilities across four major areas, with pension increases accounting for the largest share.

Subsequently, she stated that a total of N32.27 billion had been recovered by the recovery agents, comprising N15.87 billion recovered as principal contributions and N16.40 billion as penalties from defaulting employers between June 2012 and September 2025.

She stated that PenCom had recorded significant compliance gains in the third quarter of 2025 alone.

N577bn disbursed from N758bn bond raised by FG

The National Pension Commission (PenCom) also stated that it has disbursed over N577 billion from the N758 billion approved by President Bola Tinubu to clear outstanding pension liabilities under the contributory pension scheme (CPS).

PenCom DG said the total amount released was N757.9 billion, with N387 billion earmarked for pension increases.

According to her, N387 billion allocated for pension increase owed to retirees. Of this, N362.74 billion has already been disbursed to about 9.1 million retirees, while the remaining N24.7 billion is being processed for payment.

The disbursement also includes N252 billion for accrued rights of federal workers who retired before the 2012 Contributory Pension Scheme (CPS), N107 billion for the Pension Protection Fund to support low-income retirees, and N10 billion specifically set aside to settle outstanding pension obligations for professors across federal tertiary institutions, with payments being made in batches.

In addition, PenCom reported that N107 billion was remitted to cover a 2.5% shortfall in the Federal Government’s pension contributions between 2017 and 2021, benefiting about 750,223 Retirement Savings Accounts.

Overall, more than N577.58 billion of the approved funds has already been credited to the accounts of retirees and contributors, directly impacting over 1.05 million RSAs nationwide.

The remaining balance continues to be processed.

Speaking at the 2025 Pension Revolution Summit, themed “The 365-Days Scorecard,” Oloworaran described the intervention as an unprecedented demonstration of the Federal Government’s commitment to honouring pension obligations, commending President Bola Ahmed Tinubu for prioritising the welfare of retirees and strengthening confidence in the pension system.

“One of the most historic milestones of this year was the presidential approval and disbursement of 758 billion naira to settle outstanding pension liabilities. This unprecedented intervention set a clear and powerful signal that Nigeria honours its promises to its workers and retirees. Again, I say we have a talk and do respect,” she said

She explained that the funds were applied across key pension obligations, including accrued rights, pension increases, the Pension Protection Fund, and long-standing pension shortfalls for professors in federal tertiary institutions.

She added that the intervention had reduced waiting time for payment of approved accrued rights from as long as 21 months to zero, with effect from July 2025.

PENCARE to commence Q1 2026

Beyond the pension clearance, Oloworaran highlighted broader reforms under its Pension Revolution 2.0 agenda, including full automation of key pension processes, enhanced benefit processing platforms, and the launch of the Pension Healthcare Initiative (PENCARE) to support affordable healthcare for low-income retirees.

She further stated “The health initiative will commence in the first quarter of 2026 with about 30,000 retirees to be onboarded on the Scheme.”

She said the Board of the PENCARE has informed the Commission that onboarding in the six geopolitical zones will commence in January next year

The reforms, she said, were structural rather than cosmetic, covering new regulations, stronger supervision, governance reforms, digital transformation, and industry realignment.

According to her, the combined effect of the N758 billion intervention and ongoing structural reforms had reinforced trust in Nigeria’s contributory pension scheme, improved benefit adequacy, and strengthened the pension system’s role as a pillar of long-term financial stability.

To improve benefit adequacy, PenCom also introduced Pension Boost 1.0, which has added N2.68 billion to monthly pension payments for retirees under the Contributory Pension Scheme since June 2025.

She said the initiative was already improving retirees’ quality of life and preserving dignity in retirement.

On the technology front, the Director-General disclosed that PenCom had achieved full automation of critical pension processes, including pension payment certificates, benefit processing and contribution remittance platforms, significantly reducing delays and improving transparency.

Personal pension plan in focus

Addressing pension coverage, Oloworaran said PenCom restructured the micro pension scheme into the Personal Pension Plan to accommodate artisans, traders, gig workers, and other informal sector participants.

The revamped scheme simplifies onboarding, expands digital enrolment, and introduces accredited pension agents, a move she said would drive financial inclusion while creating employment opportunities for young Nigerians.

On governance, the PenCom DG said capital requirements for pension operators had been raised to strengthen institutions, improve risk management, and enhance professionalism across the industry.

She added that new governance rules had eliminated shadow directorships, insisting that transparency and accountability were non-negotiable in managing Nigerians’ retirement savings.

She commended industry operators, the media, and PenCom staff for their roles in advancing the reforms, stating that the pension revolution was no longer a promise but a process in motion that would continue to shape a more inclusive, resilient, and trusted pension system in Nigeria.

She further stated that PenCom also tightened compliance across the pension value chain in 2025 by linking Pension Clearance Certificates to participation in pension-related financial transactions.

The commission said companies without valid certificates are barred from doing business with Pension Fund Administrators, custodians and major banks.

The move, PenCom said, led to a sharp rise in recoveries. Pension recoveries between January and November 2025 rose to N4.04 billion, compared with N1.44 billion recorded in the whole of 2024. Of that amount, N2.06 billion was recovered in the third quarter alone.

“This clearly demonstrates that when compliance is tied to real economic consequences, behaviour changes,” Ms Oloworaran said.

On subnational compliance with the CPS, Oloworaran noted that only eight out of 36 states had complied, adding that the commission was also partnering with all states to ensure full compliance.

Pension assets soar to N26trn

Meanwhile, Daily Trust reports that the total pension fund assets under the Contributory Pension Scheme, CPS, increased by 2.2 per cent, month-on-month, MoM to N26.66 trillion in October 2025 from N26.09 trillion in September 2025, according to report by the National Pension Commission

Analysis of the report showed that a major chunk of the assets were invested in the federal government, FGN, securities, which increased by 1.3 per cent to N15.9 trillion from N15.7 trillion.

A breakdown of the FGN securities showed that N15.1 trillion was invested in FGN bonds, up from N14.9 trillion in September. A total of N686.2 billion was invested in treasury bills, up from N616.3 billion, while N2.16 trillion was invested in corporate debt securities, down from N2.24 trillion.

Also, the total Retirement Savings Account, RSA, membership as of 31 October 2025 stood at 10,970,979, up from 10,928,039. (Daily Trust)