FG may issue N758bn pension bond by October – PenCom
pencom
The Federal Government may float a N758bn bond before the first week of October to offset outstanding pension liabilities, the National Pension Commission has announced.
The Director of Contribution and Bond Redemption Department at PenCom, Usman Musa, disclosed this at a press briefing in Abuja on Thursday, noting that the process had gathered momentum following approvals from the Federal Executive Council and the National Assembly.
“As the DG has mentioned, the process of issuance of the N758bn bond has commenced. In fact, we have gone very fast,” Musa said. “We are hopeful that by the end of this month, or at least the first week of October, we will start receiving the process. And once that is done, the bond is ready to go; we will commence payment.”
PenCom’s Director-General, Omolola Oloworaran, described the inauguration of the Pension Industry Leadership Council as a “historic milestone” for the sector, likening it to the Bankers’ Committee in the financial system.
She said the contributory pension scheme, introduced in 2004, had mobilised long-term savings and restored retirement dignity, but stressed that gaps remained in coverage, adequacy, and governance.
According to her, the new council will drive reforms by expanding pension access to the informal sector, enforcing governance standards, channeling assets into national development, and strengthening public confidence.
Oloworaran said the reforms being championed by President Bola Tinubu amounted to a “pension revolution 2.0,” citing directives on health care provision and a minimum pension guarantee.
“The President is passionate and also a dear fighter for ordinary Nigerians. His charge is very clear: there must be social protection for ordinary Nigerians in old age,” she stated.
On concerns about inflation and the value of retirement savings, the DG disclosed that PenCom was reviewing investment regulations to allow pension fund administrators increase exposure to alternative assets to hedge against devaluation.
She also confirmed that retirees under the Contributory Pension Scheme were receiving benefits promptly, with arrears cleared up to September.
While admitting that the micro-pension plan targeting the informal sector had underperformed, Oloworaran assured that new initiatives would soon be unveiled.
“Like I said, the language is reform, reform, reform. From Monday next week, begin to see the reforms unfold,” she added.
The government also needs to consider something like reasonable % annual increments on the annual balance on employee pension contributions, and many other welfare packages for the retiring workers. Nothing is too much for the person that dedicated all his productive life to the service and progress of his nation.