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.”
