FG Releases N22 Billion for 2024 Pension Payments

The Federal Government has taken another step toward addressing accrued pension rights under the Contributory Pension Scheme, releasing an additional N22 billion for retirees in Ministries, Departments, and Agencies (MDAs).

The National Pension Commission (PenCom), in a statement on Tuesday night, confirmed the disbursement, which was facilitated through the Office of the Accountant-General of the Federation. The funds are targeted at retirees who exited the service between October 2023 and January 2024.

“These funds were disbursed into the Retirement Benefits Bond Redemption Fund Account (domiciled) at the Central Bank of Nigeria. They are meant to settle accrued pension rights for verified retirees of Treasury-funded MDAs,” PenCom disclosed.

The release also includes payments for some deceased employees, whose accrued rights have been credited to their Retirement Savings Accounts (RSAs) through Pension Fund Administrators (PFAs). The Commission directed PFAs to expedite the payment process, urging eligible retirees to complete the necessary documentation to access their benefits.

This latest disbursement brings the total amount released for accrued pension rights in the 2024 budget to N66 billion. It follows the FG’s earlier release of N44 billion in December 2023, covering retirees from March to September 2023.

While the fresh allocation signals progress, critics have raised concerns over the FG’s approach to pension settlements. The Centre for Pension Rights Advocacy criticized the government for what it described as a “selective” payment system, accusing it of treating pension obligations as discretionary rather than fulfilling its statutory responsibilities. Despite the criticisms, the release provides relief to many retirees who have faced delays in accessing their entitlements.