PenCom announces zero waiting time for pension payments

In a landmark reform aimed at improving retiree welfare, the National Pension Commission (PenCom) has announced ‘Zero Waiting Time’ policy for pension payments.

According to the Commission, effective July 2025, all retirees now receive their pensions immediately upon retirement, with disbursements aligned to monthly salary releases from the Federal Ministry of Finance.

Omolola Oloworaran, director general, PenCom made the disclosure Wednesday at a workshop on the Workings of The Contributory Pension Scheme (CPS) for Employees/Pension Desk Officers across the Geo-Political Zones taking place in Lagos.

Oloworaran said, ‘zero waiting time for pension payments has ended; noting that since July 2025, no retiree waits to access their pensions, as payments are now immediate, aligned with monthly salary releases from the Federal Ministry of Finance.

The DG noted that over the last two decades, the Contributory Pension Scheme (CPS) has rewritten Nigeria’s pension story. We have moved from an era defined by unpaid entitlements and uncertainty to a new order anchored on transparency, sustainability, and inclusiveness.

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Today, more than 10 million Nigerians from public service employees to private sector workers, and even artisans and the self-employed under the Personal Pension Plan, are covered under the CPS.

Pension assets have grown to over N25 trillion, fuelling national development through strategic investments, while also securing regular monthly pensions for over 552,000 retirees and lump sum benefits for an additional 291,735 retirees.

“In total, more than 844,000 retirees across both public and private sectors now enjoy retirement benefits that are steady, reliable, and transparent.”

She stated that reform is a continuous journey, noting that in line with the Commission’s mandate to protect contributors and guarantee dignity in retirement, PenCom has rolled out key interventions that are changing lives.

Among them is Pension Boost 1.0, which is enhancing pensions for over 241,000 retirees, representing 80 percent of those under Programmed Withdrawal, while monthly pensions has also from N12.157 billion to N14.837 billion, effective June 2025.

According to her, another reform is proposal for reintroduction of Gratuity for Civil Servants working with the Office of the Head of the Civil Service, informing that a framework has been developed to restore gratuity benefits for federal workers under CPS, in line with Section 4(4) of the PRA 2014.

“Approval has been secured for the issuance of N758 billion bonds to clear long-standing pension obligations, including pension increases owed since 2007. This bold step by His Excellency, President Bola Ahmed Tinubu, deserves commendation, as it will bring much-needed relief to vulnerable pensioners and restore confidence in our system.”

Other reform measures, Oloworaran listed include Stronger Prudential Standards for Operators , “Minimum capital and governance requirements for Pension Fund Administrators (PFAs) and Custodians have been revised to ensure greater financial stability, service delivery, and technological resilience.”

Oloworaran also highlighted new regulatory initiatives, including whistle-blowing guidelines for pension fund management, a revised investment regulation to promote diversification, and a framework for accredited pension agents and Personal Pension Plans.

She added that, as directed by the President, PenCom will introduce a free healthcare insurance scheme for low-income earners before the end of 2025.

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Addressing challenges in state pension systems, Oloworaran said the Commission is engaging with state governments to clear outstanding pension arrears and gratuities.

On the objective of the workshop, PenCom said this nationwide sensitization is targeted at deepening trust and ensure that every federal employee and pensioner fully understands the CPS and can access its benefits without delay.

“In addition, today’s session is part of PenCom’s commitment to building the capacity of stakeholders, and will therefore provide practical solutions and clarity on the modalities for the upcoming 2026 retiree enrolment exercise and the planned one-off enrolment of all employees of treasury-funded MDAs entitled to accrued pension rights.”