PenCom assures zero waiting time for payments, restores gratuity for civil servants

The National Pension Commission (PenCom) has announced the implementation of key reforms aimed at improving the efficiency and benefits of the Contributory Pension Scheme (CPS), including the introduction of zero waiting time for pension payments, restoration of gratuity for federal civil servants, and the provision of free health insurance for retirees.

Omolola Oloworaran, Director General of PenCom, disclosed this in Abuja, during a sensitisation workshop on the workings of the CPS for employees and pension desk officers in Ministries, Departments, and Agencies (MDAs).

The event was jointly organised by PenCom and the National Salaries, Incomes and Wages Commission (NSIWC).

Oloworaran, represented by Usman Musa, director, contribution and bond redemption department, PenCom, said the reforms mark a new phase in Nigeria’s pension administration, which she described as “Pension Revolution 2.0,” designed to strengthen retirement security, deepen trust, and enhance the welfare of retirees.

According to her, the “Zero Waiting Time for Pension Payments” initiative, implemented in July 2025, ensures that retirees now receive their pension benefits immediately after retirement, in line with monthly salary releases from the Federal Ministry of Finance.

She noted that the measure reflects PenCom’s resolve to eliminate delays and uphold the dignity of Nigerian retirees.

The PenCom boss also highlighted other achievements under the ongoing reforms, including “Pension Boost 1.0,” which increased pensions for over 241,000 retirees, representing 80 per cent of those under the programmed withdrawal scheme. As a result, monthly pension payments rose from N12.157 billion to N14.837 billion effective June 2025.

She noted that the Contributory Pension Scheme, now over two decades old, has transformed Nigeria’s pension system from an era of uncertainty and unpaid entitlements to one built on transparency and sustainability.

“Since July 2025, pension payments have become immediate, aligned with monthly salary releases from the Federal Ministry of Finance.

“Today, more than 10 million Nigerians are covered under the CPS, from public servants and private sector employees to the self-employed under the Micro Pension Plan,” Oloworaran said

According to her, pension assets have grown to over N25 trillion, driving national development through strategic investments, while ensuring regular monthly pensions for more than 552,000 retirees and lump-sum payments for over 291,000 others.

She commended President Bola Ahmed Tinubu for approving the issuance of N758 billion in Federal Government bonds to clear long-standing pension liabilities, including arrears of pension increases dating back to 2007.

Speaking at the event, Ekpo Nta, chairman of the National Salaries, Incomes and Wages Commission, stressed the importance of effective pension administration to organisational stability and national productivity.

Nta, represented by Akin Abe, Head of Compensation in the Commission, said sound pension management prevents old-age poverty, maintains retirees’ living standards, and boosts workforce morale.

He commended the Federal Government for its commitment to pension reforms, noting that initiatives such as zero waiting time and gratuity restoration would foster a more efficient and equitable pension system across the country.