FG Releases Additional ₦22bn Pension Payment for MDAs Retirees

Kehinde Fajobi

The National Pension Commission (PenCom) has announced the release of an additional ₦22 billion by the Federal Government for the payment of accrued pension rights of retirees in Ministries, Departments, and Agencies (MDAs) under the Contributory Pension Scheme.

In a statement shared on its Instagram page on Tuesday night, PenCom disclosed that the funds were provided by the Office of the Accountant General of the Federation to cover retirees who exited 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,” the statement read.

The commission added that the disbursement also includes the accrued rights of some deceased employees, with funds already credited to their Retirement Savings Accounts through their Pension Fund Administrators (PFAs).

With this release, the total amount disbursed from the 2024 Appropriation for accrued pension rights has reached ₦66 billion.

PenCom urged eligible retirees to contact their PFAs to complete the necessary documentation to access their benefits. It also directed PFAs to expedite the payment process for all verified retirees.

In December 2024, the Federal Government released ₦44 billion to pay accrued rights for retirees between March and September 2023, including some deceased retirees.

The Centre for Pension Rights Advocacy previously criticised the government for its approach to paying accrued rights, accusing it of acting as a “benevolent employer” rather than fulfilling its legal obligations.