The Federal Government is set to issue a N758bn bond before the first week of October to offset outstanding pension liabilities, according to the National Pension Commission (PenCom).
Speaking at a press briefing in Abuja on Thursday, the Director of Contribution and Bond Redemption at PenCom, Usman Musa, said the process had commenced and was progressing rapidly following approvals by the Federal Executive Council and the National Assembly.
“We are hopeful that by the end of this month, or at least the first week of October, the bond will be ready, and payments will begin,” Musa assured.
PenCom’s Director-General, Omolola Oloworaran, described the inauguration of the Pension Industry Leadership Council as a “historic milestone,” noting that it would provide collective leadership and coordination similar to the Bankers’ Committee. She said President Bola Tinubu’s ongoing reforms represented “pension revolution 2.0,” with a focus on social protection for retirees, including healthcare provision and a minimum pension guarantee.
Oloworaran acknowledged challenges such as coverage gaps, adequacy, and governance but stressed that new reforms were being rolled out to address them. She added that retirees under the Contributory Pension Scheme were now receiving benefits promptly, with payments up to date as of September.
On concerns about inflation, she revealed that PenCom was revising investment guidelines to allow Pension Fund Administrators (PFAs) to increase exposure to alternative and real assets, thereby protecting contributors’ savings from devaluation.
She admitted that the micro-pension plan for the informal sector had underperformed but promised new initiatives would soon be launched.
Earlier in February, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed that the FG, through the Debt Management Office, would issue bonds worth N758bn to settle accumulated debts under the old Defined Benefit Scheme, which piled up due to periodic wage increases.
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