The Federal Government has made N13.89 billion available to pay the pensions of its employees who retired in 2022. The benefits for an employee’s prior years of service up until June 2004, when the CPS took effect, are represented by the accrued pension rights.
Aisha Dahir-Umar, the director-general of the National Pension Commission, previously revealed in her report on the pension sector for 2021 that the Federal Government paid a total of N980.18 billion to retirees of treasury funded Ministries, Departments, and Agencies from the beginning of the Contributory Pension Scheme in 2004 to 2021.
“According to her, the most significant development in the pension industry in 2021 was the successful reduction of outstanding pension liabilities of the Federal Government under the Contributory Pension Scheme, introduced as the pension reform act 2014. The Pension Reform Act 2004 established the National Pension Commission (PenCom) as the body to regulate, supervise and ensure the effective administration of pension matters in Nigeria.
She said PenCom obtained presidential approval for N159.46bn to defray some aspects of outstanding pension liabilities of the Federal Government under the CPS. Consequently, she said, N40.55bn, being the outstanding accrued rights of 6,282 retirees and 2,329 deceased employees, was paid during the year.