Nigerian Government Vows to Settle Pension Arrears Amid Retiree Protests Over Payment Delays
The Nigerian government has committed to addressing pension arrears for its retired public workers, following a tense standoff as frustrated pensioners gathered outside the Federal Ministry of Finance in Abuja. Hundreds of retirees, still awaiting their pension benefits, demanded immediate action from Finance Minister Wale Edun, who assured the crowd that a portion of the N88bn earmarked for pension arrears in 2024 would soon be released.
Addressing the demonstrators, Edun confirmed that N22bn—about a quarter of the budgeted arrears—had already been disbursed, with plans to complete the remaining payments by the end of the year. Disbursements are set to resume next week, according to Edun, who attributed the delay to legacy issues within the older pension system but reassured retirees that the government was prioritising a solution.
“The backlog results from issues under the old pension structure,” Edun stated. “However, we have coordinated with the Head of Service and the Ministry of Budget to chart a course for clearing these outstanding obligations under the Contributory Pension Scheme. As of now, N22bn has been released under the current budget, and we are fully committed to settling the remaining N66bn before the year’s close.”
For a more sustainable solution, Edun revealed that the government is exploring raising capital through the financial markets, potentially issuing bonds to cover pension arrears more comprehensively. “Given the scale of the backlog, a long-term approach is required, one that addresses the needs of all affected retirees. This will likely involve securing funds via the capital market to resolve the pension debt once and for all,” he added.
The protests underscored growing discontent among Nigeria’s retirees, who continue to face financial strain due to the protracted delays. Sylva Nuatawu, the National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme Sector, called for a meaningful adjustment to pension payments in line with recent amendments to the National Minimum Wage. Nuatawu highlighted the plight of retirees under the Contributory Pension Scheme, many of whom have gone unpaid for over 20 months, with only partial payments made following a rally last month.
“Retirees under the CPS have been left in dire conditions—financially strained, marginalised, and cut off from essential benefits,” said Nuatawu, emphasising that this group has been excluded from recent pension increases awarded to other retired public servants.
The backlog of pension arrears owed by both federal and state governments now surpasses N193bn, according to recent reports, with the Federal Government’s contributory pension debts alone exceeding N88bn. Although some states, including Zamfara, Benue, and Kaduna, have begun clearing their arrears, many others are still saddled with significant debts to their retired workers.
In the meantime, Edun reaffirmed that retirees could expect additional disbursements in the weeks to come, with the government keen to resolve pension debts under the current budget and develop a robust financial solution to prevent future delays.
