Launches Pension Boost 1.0, increases monthly payout to N11.9bn
The National Pension Commission (PenCom) has warned that organisations failing to comply with pension remittance obligations will be blacklisted starting November 10.
The Director-General of PenCom, Ms Omolola Oloworaran, issued the warning during the commission’s second-quarter media briefing in Lagos on Wednesday.
Oloworaran noted that this was to reinforce PenCom’s adoption of its zero-tolerance approach to non-compliance with the Pension Reform Act of 2014.
She said: “Moving on, it is now zero tolerance for non-compliance with the pension reform act of 2014. Effective immediately, PenCom has launched an uncompromising compliance drive to ensure the pension reform act is complied with by every operator.
“Every organisation, public, private, big or small, must comply with pension remittance obligations. No exceptions, no delays.
“All Pension Fund Administrators and Custodians have been directed to ensure every vendor, service provider and counterparty have a valid Pension Clearance Certificate (PCC) that evidences that they have been up to date and compliant with pension contribution.
“By November 30 this year, any entity without a PCC will be blacklisted and cut off from pension business with all PenCom regulated entities.
“This directive also extends to banks, investment counterparties, parent companies and shareholders of licensed pension funds administrators and custodians.
“All pension fund affiliated entities must enforce the pension clearance certificate requirements across their operators and across all ecosystem and submit our compliance attestations.
“We are drawing the red line, pension compliance is no longer optional, it is existential. Only those who value the future of their employees can participate in this ecosystem and the reward that it offers.”
Oloworaran noted that the commission was seriously committed to rejigging the pension industry to achieve a more robust and inclusive system that supports sustainable economic development.
She said earlier in May, PenCom convened an inaugural pension industry leadership retreat with the theme, ‘Sustainable Retirement: A Strategic Blueprint for Economic Development and Inclusion’.
She explained that four clear pillars emerged from the strategy session.
“First, was infrastructure financing. Long-term pension funds should drive real economic growth and pension fund contributors and retirees deserve real returns.
“This means investment only in the risk, transparent and brand capable products, no shortcuts and no excuses,” she said.
Oloworaran listed the second pillar as legislative partnership, noting that the commission was establishing a Pension Legislature Working Group.
She said that the group would work with lawmakers to institutionalise needed reforms and strengthen the legal framework governing the pension sector.
“The third pillar was the diversification of pension assets. We are revising the investment regulations to open up access to a broader range of alternative asset classes.
“This will be done with full regard for transparency and reinforced risk management,” she said.
The PenCom boss said the fourth pillar focused on revolutionising the micro pensions scheme, which had now been rebranded as the Personal Pension Plan.
“This plan has been re-engineered for scale, technology enablement, and deep penetration into the informal sector.
“We are resetting the industry’s strategic compass,” Oloworaran said.
She also revealed that PenCom has launched Pension Boost 1.0, a new initiative under the Contributory Pension Scheme (CPS) aimed at increasing monthly pension payments to retirees.
With the launch, total monthly pension payouts have increased from N8.3 billion to N11.9 billion, effective June.
The Director-General of PenCom, Ms Omolola Oloworaran, made this known during the commission’s second-quarter media briefing in Lagos on Thursday.
Oloworaran noted that the increase would directly benefit over 233,000 retirees, depending on their Retirement Savings Account (RSA) balances.
She said: “We are introducing Pension Boost 1.0. This is the news every retiree has been waiting for.
“Effective this month, total monthly pension payments under the CPS will rise from N8.3 billion to N11.9 billion. This will directly benefit over 233,000 retirees, depending on their pension account balances.”
The DG described the initiative as a strategic leap made possible by strong RSA investments and bold economic reforms under the administration of President Bola Tinubu.
“This is not a token gesture. It’s a result of sound investment returns and a visionary framework for pension enhancement.
“It is driven by our newly modified standard pension enhancement template, a transparent structure that allows upward pension adjustments as investment returns increase. This is just the beginning.”
The PenCom boss also revealed that the backlog of pension arrears had been nearly cleared, with all retirees up to March 2025 now having received their accrued pension rights and monthly entitlements.
She commended President Bola Tinubu for approving a N758 billion bond to settle outstanding pension liabilities, describing it as a landmark move demonstrating the government’s dedication to the welfare of Nigerian retirees.
“Thanks to the decisive leadership of President Tinubu, we’ve seen stable and consistent releases of funds for accrued rights since November last year. The end of pension arrears is very, very near.
“President Tinubu’s approval of the N758 billion bond to clear pension liabilities is further proof that this administration is rewriting the retirement narrative in Nigeria,” she stressed.
Reiterating PenCom’s vision, Oloworaran said the commission is focused on building a transparent, inclusive, and resilient pension system.
“We are restoring faith in retirement. We are rewarding work with dignity,” the DG added.
She also issued a warning to defaulting employers and complacent pension operators.
“To employers with late pension remittances, your grace period is over. To operators who remain complacent, there will be consequences. And to every Nigerian worker, we see you, we hear you, and we will protect your future.
“Let the pension industry take note: this is a new era, and we are not going to turn back. We will continue to move forward,” Oloworaran said.
