Retirees under Nigeria’s Contributory Pension Scheme (CPS) have renewed calls on the National Pension Commission (PenCom) to abolish its controversial 50% pension release policy, urging that all outstanding pension arrears be paid in full to beneficiaries.
The demand follows the Federal Government’s approval and release of ₦758 billion to settle accumulated pension liabilities, a move widely praised as a major relief for thousands of pensioners who have waited years for their entitlements.
In an open letter addressed to PenCom’s Director-General, the Senior Citizens Association of Nigeria, Retirees Chapter, described President Bola Ahmed Tinubu’s approval of the funds as a “lifeline for the nation’s senior citizens.”
The letter, signed by the association’s National Coordinator, Rev. Adio Odejide, and National Secretary, Prof. Idorenyin Etukudo, however, expressed concern that the current disbursement policy deprives retirees of their full benefits by spreading arrears exceeding ₦100,000 across a retiree’s “expected lifespan” instead of a one-time payment.
“Our demand is that, no matter the amount a retiree is entitled to, the full sum should be paid into their accounts at once,” the group stated. “These are benefits that retirees would have already enjoyed had the system paid as and when due.”
The retirees lamented that rising inflation, high medical costs, and economic hardship have made the existing policy unsustainable, forcing many senior citizens into poverty after decades of dedicated service to the nation.
FG Commended, But Policy Under Fire
While commending the Federal Government for responding to long-standing demands to clear arrears and enhance pension payments, the retirees stressed that PenCom’s policy threatens to undermine the positive impact of the ₦758bn bailout.
“We thank President Tinubu for his compassion and leadership,” the letter continued. “However, PenCom’s continued enforcement of the 50% pension policy works against this goodwill and should be urgently reviewed to reflect current economic realities.”
The retirees also called on PenCom to ensure transparent disbursement, timely communication with retirees, and policy reforms that protect the dignity of the aging population.
Analyst’s Perspective
Chartered accountant and pension analyst Peter Adebayo described the retirees’ demand as “timely and valid,” adding that PenCom’s staggered payment model no longer aligns with Nigeria’s economic realities.
“In an economy battling nearly 30% inflation, paying retirees half of their due is practically ineffective,” he said. “Many of them are elderly and face high medical and living costs. It’s more humane and logical to allow full disbursement of benefits.”
Adebayo recommended a hybrid system where retirees can choose between full or phased payment options, balancing the need for financial sustainability with social compassion.
The Long Road to Pension Justice
Since the introduction of the Contributory Pension Scheme (CPS) in 2004 under the Pension Reform Act, Nigeria has struggled with payment delays, underfunding, and record verification bottlenecks.
PenCom’s lump-sum disbursement rule was originally designed to preserve pension assets over a retiree’s expected lifespan. However, critics argue that the policy now works against pensioners, as the real value of money continues to erode amid inflation and economic uncertainty.
The Senior Citizens Association noted that many retirees depend entirely on their pensions and cannot afford to wait years for their full entitlements.
“If the arrears are paid as desired, it will provide much-needed relief and help retirees cope with Nigeria’s harsh economic conditions,” the association added.
Retirees’ Key Demands to PenCom
1. Scrap the 50% Pension Policy:
End the rule spreading arrears over a retiree’s lifespan; pay all dues at once.
2. Full Arrears Payment:
Deposit all accumulated benefits directly into retirees’ accounts.
3. Review Disbursement Framework:
Allow retirees to choose between full or partial lump-sum options.
4. Inflation Adjustment:
Ensure pensions reflect real cost-of-living increases.
5. Transparency in Fund Management:
Publish timelines and reports on pension releases.
6. Health and Welfare Integration:
Include healthcare and welfare support in pension packages.
7. Stakeholder Consultation:
Hold regular engagement meetings between PenCom, PFAs, and retirees’ associations.
Why It Matters
- Inflation has eroded the real value of pensions, leaving retirees vulnerable.
- Many senior citizens live below the poverty line despite years of service.
- The FG’s ₦758bn release presents an opportunity to restore confidence in Nigeria’s pension system.
By the Numbers
₦758 billion — Pension arrears released by FG in October 2025
7.1 million — Active contributors under the CPS
₦19.7 trillion — Total pension assets under management (PenCom Q2 2025)
40%+ — Estimated retirees awaiting full disbursement of accrued benefits
28.9% — Nigeria’s headline inflation rate (Sept 2025, NBS data)
Policy Outlook
Observers say the retirees’ appeal presents PenCom with an opportunity to rethink its payment structure and rebuild trust.
If acted upon, the policy shift could strengthen confidence in the pension system and improve retirees’ quality of life.
But if ignored, analysts warn the issue could escalate into widespread discontent among Nigeria’s growing population of senior citizens.
As the debate continues, one message rings clear from the retirees’ camp:
“We’ve served our country faithfully. We deserve to live our remaining years in dignity, not debt.”
Nigerian retirees have urged the National Pension Commission (PenCom) to abolish its 50% pension payment policy and release full arrears immediately, following the Federal Government’s ₦758 billion clearance of pension backlogs
Discover more from Ameh News
Subscribe to get the latest posts sent to your email.
