Retired federal workers will receive an extra N32,000 monthly pension following Tinubu’s N758bn bond.
The intervention aims to clear decades of arrears, align benefits with wage laws, and protect retirees.
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Retired federal employees under the Contributory Pension Scheme (CPS) are set to receive an additional N32,000 monthly pension, following the approval of a N758 billion bond by President Bola Ahmed Tinubu to clear outstanding pension liabilities.
The increment is intended to align pensions with the National Minimum Wage Amendment Act 2024 and its subsequent adjustments. It will apply across the board as a baseline payment for retirees in critical sectors, including education, health, security, and the Armed Forces, irrespective of their accumulated retirement savings.
On August 6, President Tinubu directed the immediate implementation of long-overdue pension increases and a minimum pension guarantee to establish a financial safety net for vulnerable retirees, many of whom have faced inadequate payments for years.
Confirming the development, an official of the National Pension Commission (PenCom) said proceeds from the bond would soon be released once the National Assembly gives its concurrence. The payment, officials noted, is expected to bring immediate relief to thousands of retirees who had been left behind by wage adjustments in the public service.
Breaking down the allocation, PenCom’s Director-General, Omolola Oloworaran, explained that the N758 billion bond would be disbursed in three key categories:
- N253 billion for accrued rights of workers employed before the CPS was introduced in 2004, or those close to retirement at the time.
- N387.5 billion to clear pension increases dating as far back as 2007, which successive administrations had failed to implement.
- N107 billion for the Pension Protection Fund, created to support low-income retirees whose savings under the scheme are insufficient to meet the new minimum pension guarantee.
Oloworaran stressed that the intervention was “long overdue” and would help restore confidence in the CPS, which has faced criticism for failing to deliver equitable benefits since its inception two decades ago. “This is a vital step toward addressing nearly 20 years of unpaid pension increments and ensuring fairness for retired workers,” she said.
The National Salaries, Incomes and Wages Commission (NSIWC) had earlier confirmed the adjustment, noting that retirees would benefit from an additional N32,000 monthly under the revised minimum wage framework.
Labour unions and pensioners’ associations have welcomed the move, describing it as a lifeline for retirees battling inflation, rising healthcare costs, and the erosion of their savings. However, some stakeholders caution that timely disbursement and transparency will be key to ensuring the funds reach beneficiaries without bureaucratic delays.
With this intervention, the government hopes not only to provide immediate relief but also to reaffirm its commitment to protecting the welfare of retired workers who served the nation.
