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The National Pension Commission (PenCom) said it has paid out over N577.26 billion to retirees and pension contributors, following the Federal Government’s unprecedented intervention to clear long-standing pension liabilities.

The Director-General of PenCom, Ms. Omolola Oloworaran, made the disclosure while addressing journalists at the “2025 Pension Revolution Summit – A 365 Days Scorecard,” where she presented an account of reforms, payouts and structural changes recorded by the Commission over the past year.

Oloworaran said the Federal Government approved and released N758 billion to settle outstanding pension liabilities, describing the development as one of the most historic milestones in the pension industry.

According to her, the funds were realised through the bond market and deployed to address pension increases, accrued rights and other legacy obligations.

“The National Pension Commission has paid out N362,742,954,000 to about 194,000 retirees from the N758 billion realised,” she said. “The major tranche of this was N387 billion for pension increases. Out of this amount, we have paid N362,742,954,000, leaving a balance of about N24.7 billion, which we are processing.”

She explained that the disbursement had a significant impact across the public sector, with a notable portion paid to security personnel. A director of the Commission added that “out of the N362 billion paid out, 32 per cent, amounting to N132 billion, was paid to the Nigeria Police.”

Oloworaran further disclosed that the Commission has commenced payments under the minimum pension guarantee framework, describing it as the Federal Government’s contribution toward protecting retirees on the lower end of the income scale.

“We are coming out with the minimum pension guarantee. This is just a share of the Federal Government in paying the subvention for the minimum pension guarantee, and this is also being disbursed,” she said.

She added that PenCom has also remitted N107 billion to cover the Federal Government’s outstanding 2.5 per cent pension contributions for a five-year period, after noting that the government did not make those contributions between 2017 and 2021.

“This went directly to the addresses of 750,223 individual retirement savings accounts,” Oloworaran said, adding that payments to professors under approved pension enhancements were also ongoing in batches.

According to her, the cumulative effect of all the disbursements shows that a total of N577,264,960,890.43 has been credited directly to the accounts of pension retirees and contributors, impacting more than 1.05 million retirement savings accounts nationwide.

Speaking on the significance of the intervention, Oloworaran said the Presidential approval and release of N758 billion sent a strong message about the country’s commitment to its workforce. “This unprecedented intervention set a clear and powerful signal that Nigeria honours its promises to its workers and retirees. We have the talk and we do the precedent,” she said.

She also said PenCom introduced Pension Post 1.0 earlier in the year to improve benefit adequacy, noting that the initiative has already added N2.6 billion to monthly pension payments for retirees under the Contributory Pension Scheme since June.

“These are not just numbers,” she said. “They are meals on tables, medicine bought, debts settled, and dignity preserved.”

On technology-driven reforms, Oloworaran said the Commission has automated several previously manual processes, including pension payroll certification. “The process is now automated, and there is a significant upgrade coming,” she said, adding that benefit processing and contribution maintenance platforms have also been upgraded through a system known as COBRA, which she said is now live and operational.

She disclosed that PenCom inaugurated the Board of Trustees of the Pension Healthcare Initiative, known as PENCARE, describing it as a landmark intervention to provide affordable and accessible healthcare for low-income retirees.

“Retirement should be a season of peace, not a period defined by anxiety over medical bills,” she said, thanking industry stakeholders for supporting the initiative.

Oloworaran also announced the establishment of the Pension Industry Leadership Council, a platform designed to foster collaboration, accountability and innovation across the sector.

She said another major reform was the restructuring of the micro-pension plan into the Personal Pension Plan, aimed at expanding coverage among informal sector workers such as artisans, traders, gig workers and creatives.

“Under the Personal Pension Plan, onboarding is completely simplified. I believe you only need your name and a verifiable identity to onboard,” she said.

She disclosed that PenCom has expanded digital enrolment and introduced accredited pension agents, adding that approval in principle has already been granted to one agent Awabah, with another in progress. According to her, the initiative is also designed to create employment opportunities for young Nigerians.

“Accredited pension agents are not merely a distribution channel. They are also an employment strategy,” Oloworaran said.

On regulation, she said the Commission deliberately raised capital requirements for pension operators to strengthen the industry. “This was not punitive. It was purposeful. Stronger capital means stronger institutions,” she said.

She added that governance rules were also tightened to eliminate shadow directorships. “Pensions cannot be managed from the shadows. Transparency, accountability, and fit-and-proper leadership are not negotiable,” she said.

Oloworaran said a compliance circular issued in the second quarter of the year, which linked pension clearance certificates to participation in pension-related transactions, has already changed behaviour across the system.

“If you don’t have a pension clearance certificate, you can’t do business with PFAs, custodians or even transact with the largest banks,” she said.

According to her, pension recoveries rose sharply following the directive. “From January to November this year, total pension recoveries reached N4.04 billion, compared to N1.44 billion for the whole of 2024. That is an increase of about 180 per cent,” she said, adding that N2.06 billion was recovered in the third quarter of 2025 alone.

She said the surge in recoveries and clearance certificate issuance shows that compliance improves when enforcement carries real economic consequences. “This clearly demonstrates that when compliance is tied to real consequences, behaviour changes,” Oloworaran said.