The National Pension Commission (PenCom), has said that the approval of an N758bn bond to settle longstanding pension liabilities under the Contributory Pension Scheme would also benefit university professors, low-income earners, and others.
PenCom which is the body that regulates the pension industry in Nigeria said that the bond would restore confidence in the sector and called on stakeholders to collaborate in expediting the bond issuance.
The Federal Executive Council (FEC), had earlier in February, approved the issuance of a Federal Government bond worth N758bn to settle outstanding pension liabilities owed to retirees under the old Defined Benefit Scheme.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, said the approval authorised the Debt Management Office to raise the funds needed to clear the backlog of pension arrears.
According to PenCom, which regulates the pension industry in Nigeria, said through its social media pages, that the bond would restore confidence in the sector, stressing that the main beneficiaries of the approval will include professors.
PenCom said; “It settles the shortfall in university professors’ pensions, ensuring they receive their rightful full salary as a pension, an issue that has lingered since 2017.
“For the first time, the Federal Government is committing funds to the Pension Protection Fund, a statutory provision designed to augment pensions for low-income earners but left unfunded since its inception in 2014.
“Additionally, this intervention clears all pension increases since 2007, a backlog that had burdened retirees for over a decade,” it said.
In the statement, the Director-General of PenCom, Ms Omolola Oloworaran, expressed appreciation to President Bola Tinubu for his bold and compassionate leadership in resolving critical issues in pension.
Oloworaran further said that the intervention would not only restore retirees’ dignity but also reinforce trust in the pension system.
