The National Pension Commission has disclosed that the Federal Government has eliminated a longstanding backlog in pension funding and now maintains a 41-month surplus for accrued pension rights of enrolled federal workers, according to the Director-General Omolola Oloworaran speaking at the 2026 Pension Correspondents Association of Nigeria Conference in Abuja. The turnaround represents a dramatic shift from the previous position where the government owed accrued pension rights for 21 months. Under the new arrangement, federal government employees who have not yet retired and are enrolled in the scheme have had their accrued pension rights funded in advance through December 2029.
PenCom also announced that payment delays have been largely eliminated, with retirement benefits now processed within a maximum of 48 hours from retirement, the commission said. President Bola Tinubu launched two complementary initiatives on Tuesday: the PenCare health insurance programme and a minimum pension guarantee of N52,500. According to Oloworaran, the PenCare scheme, funded by pension operators and PenCom under an independent board of trustees chaired by Muhammad Ahmad, will reduce retirees' medical expenses and free up more of their monthly pensions for other needs. Eligible retirees currently receiving less than N52,500 will have their pensions increased to meet this minimum threshold, with some beneficiaries receiving payment alerts during the launch.
The Federal Government has also approved additional exit benefits equivalent to 100 per cent of terminal emoluments for eligible retirees, effective from January 1, 2026, PenCom said. Eligible retirees who submitted their documents during 2026 have already received payments under this scheme. Meanwhile, the Pension Transitional Arrangement Directorate introduced remote verification and enhanced life-status checks for pensioners under the Defined Benefits Scheme, allowing beneficiaries in locations including the United States and Uganda to complete verification without travelling to Nigeria, the directorate said.
Efforts to expand pension coverage have also advanced. Awabah disclosed that personal pension enrolment requirements have been reduced from 25 fields to four, making it easier for informal sector workers to register and contribute through Point of Sale terminals in partnership with Moniepoint and Interswitch. The company has also launched an initiative called Pension Oga to deploy agents to markets and communities to register informal workers, collect contributions and educate the public about pension savings. The Pension Fund Operators Association of Nigeria's chief executive called for responsible investment of pension assets in infrastructure, housing, energy and productive sectors to support the government's target of building a $1 trillion economy.
The National President of the Nigeria Union of Pensioners demanded that the new exit benefits be extended to retirees who left service between 2004 and December 2025, and disclosed that N12.3 billion had been released for the exit-benefit programme. The Pension Transitional Arrangement Directorate announced that registration has commenced for its proposed health insurance programme, ahead of a formal launch.
For federal workers and retirees, the funding surplus means pension payments are now guaranteed through 2029, faster processing reduces waiting times, and the minimum pension guarantee and health insurance programme provide expanded support for retirement incomes and medical expenses.