Over 18,000 retirees of the Federal Government are still waiting for the payment of their accrued pension rights.
This revelation was made by the Director General of the National Pension Commission (PenCom), Mrs. Omolara Oloworaran, during a media retreat in Lagos.
The event, themed “Tech-Driven Transformation: Shaping the Pension Landscape,” focused on advancements in the Nigerian pension sector.
Mrs. Oloworaran disclosed that the federal government last disbursed N44 billion in pension funds covering retirees from March to September 2023.
However, despite this progress, many retirees from 2023 are still yet to receive the pension benefits they are owed.
“The government has not yet completed the payments for retirees funded through the treasury who retired in 2023,” Mrs. Oloworaran stated.
She further clarified that the N44 billion approved under the 2024 budget was meant to cover retirees who had been verified and enrolled between March and September 2023, including some deceased employees.
This delay in pension payments has become a serious concern, especially as retirees depend on their pensions for daily survival.
The PenCom DG explained that despite these challenges, PenCom has made strides in advancing the pension sector through the use of technology.
“Technology is now the backbone of transformation in every sector, including pensions,” Mrs. Oloworaran said.
She highlighted that PenCom currently oversees pension assets exceeding N21.9 trillion as of October 2024, with over 10.5 million contributors in the system.
While these numbers show growth, Mrs. Oloworaran pointed out that inflation continues to negatively affect retirees, as it reduces the real value of their pension.
“The purchasing power of retirees is eroded by inflation, and we are actively looking for innovative solutions to tackle this challenge,” she said.
The DG also mentioned the ongoing delays in the payment of accrued rights to retirees, stressing the importance of developing a more sustainable system that ensures retirees receive their benefits on time.
She assured the public that PenCom is working closely with the Federal Government to address these issues.
“There is a need for a system that guarantees timely payments for retirees, and we are committed to making this happen,” Mrs. Oloworaran added.
In addition to addressing the backlog of payments, Mrs. Oloworaran emphasised the importance of the micro-pension plan, which was launched to ensure that every Nigerian, regardless of income, has access to pension benefits.
“The micro-pension plan is critical because it ensures that no one is left behind, especially those in the informal sector,” she explained.
Through the use of technology, the micro-pension plan is making it possible for people in the informal sector to enrol in the pension scheme via mobile phones, manage their accounts in real time, and access their benefits more efficiently.
PenCom has also introduced new digital systems to enhance the efficiency of pension management.
In October 2024, PenCom launched an e-Application Portal designed to streamline the Pension Clearance Certificate (PCC) process.
The portal replaces the previous manual process, allowing companies to apply and receive PCCs online.
Since the portal was launched, over 38,000 PCCs have been issued, making it easier for companies to comply with pension regulations.
Mrs. Oloworaran explained that this digital platform is part of PenCom’s broader effort to modernise the pension sector, ensuring that pension contributions are remitted correctly and that discrepancies in remittance details are addressed more swiftly.
“We are working hard to digitise all aspects of pension management, from contributions to benefits, to ensure a more seamless and efficient system,” she said.
Despite these advancements, PenCom is aware that challenges remain in ensuring full compliance and enhancing service delivery.
Mrs. Oloworaran reiterated PenCom’s commitment to improving pension systems and making them more accessible to Nigerians.
“We are focused on strengthening compliance, diversifying pension assets, and extending coverage to more Nigerians,” she stated.
The DG expressed optimism that these reforms, along with technological advancements, will improve the overall pension system and address the ongoing challenges that retirees face.
“We are committed to transforming the pension landscape, making it more inclusive and more responsive to the needs of retirees,” Mrs. Oloworaran concluded.
The issue of unpaid pension rights has raised concerns across the country, with retirees calling on the government to prioritise the timely release of pension funds.
Pensioners, many of whom have served for decades in various federal government agencies, are calling for a system that guarantees prompt payment of their benefits.
In the meantime, PenCom is pushing forward with technological innovations aimed at easing pension administration and improving the overall efficiency of the system.
As the country moves towards greater digitalisation, many hope these reforms will bring an end to the frustrating delays that have characterised pension payments in recent years.
