Pension Assets Rise to ₦23.33 Trillion in Q1 2025 as FG Clears ₦1.2 Trillion in Arrears
In the first quarter of 2025, Nigeria’s pension assets grew by ₦820 billion, bringing the total to ₦23.33 trillion as of March 31, up from ₦22.51 trillion in December 2024. This was disclosed by the National Pension Commission (PenCom) during a press briefing in Lagos. The Director General of PenCom, Ms. Omolola Oloworaran, emphasized that her leadership marks a new phase for the pension industry, focused on transparency and efficient management of the Contributory Pension Scheme (CPS).
Ms. Oloworaran highlighted that the federal government has paid ₦1.2 trillion to settle outstanding accrued pension arrears for retired federal civil servants. These accrued rights, which represent the retirement benefits earned by employees before joining the CPS in 2004, are critical as they must be deposited in retirees’ Retirement Savings Accounts (RSAs) before monthly pensions can be accessed. The lack of timely payment had previously prevented many retirees from drawing their entitlements.
The federal government has made significant strides in recent years, having cleared over ₦700 billion in pension arrears within the last two years alone. This progress means that, as of March 2025, the government has settled virtually all outstanding payments, leaving only arrears from April and May 2025. These efforts are aimed at rebuilding trust in the CPS and ensuring retirees receive their pensions without undue delay.
In a strategic financial move, the government also floated ₦750 billion in pension bonds. These funds are earmarked to further clear any remaining pension liabilities, signaling a strong commitment to resolving long-standing issues affecting retired public workers. This initiative is expected to create a more sustainable and stable pension system going forward.
Additionally, PenCom announced the launch of a “Pension Boost” initiative starting in June 2025. Under this program, approximately 223,000 retirees will receive enhanced pension benefits, resulting in an increase in total monthly payments from ₦8.2 billion to ₦11.2 billion. This is part of broader reforms aimed at improving the welfare of pensioners and increasing the impact of the CPS nationwide.
Source: This day