The National Pension Commission has said that the approval of an N758bn bond to settle longstanding pension liabilities under the Contributory Pension Scheme would benefit university professors, low-income earners, and others.

Via its social media pages, PenCom, which regulates the pension industry in Nigeria, said that the bond would restore confidence in the sector.

The Federal Executive Council earlier this month approved the issuance of a Federal Government bond worth N758bn to settle outstanding pension liabilities owed to retirees under the old Defined Benefit Scheme.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, explained that the approval authorises the Debt Management Office to raise the funds needed to clear the backlog of pension arrears.

According to PenCom, the main beneficiaries of the approval will include professors.

The body explained in a statement, “It settles the shortfall in university professors’ pensions, ensuring they receive their rightful full salary as a pension, an issue that has lingered since 2017.

“For the first time, the Federal Government is committing funds to the Pension Protection Fund, a statutory provision designed to augment pensions for low-income earners but left unfunded since its inception in 2014. Additionally, this intervention clears all pension increases since 2007, a backlog that had burdened retirees for over a decade.”

The Director-General of PenCom, Ms Omolola Oloworaran, expressed profound appreciation to President Bola Tinubu for his bold and compassionate leadership in resolving these critical pension issues.

She emphasised that this intervention not only restores retirees’ dignity but also reinforces trust in the pension system.

Meanwhile, PenCom has urged all stakeholders to collaborate in expediting the bond issuance.