In response to growing frustration among retirees, the Federal Government has pledged to settle the N88 billion budgeted for pension arrears in 2024. Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the announcement on Tuesday after hundreds of retirees from Nigeria’s Contributory Pension Scheme (CPS) gathered at the Ministry of Finance in Abuja, demanding action on long-overdue payments.
The protestors, weary from the delays, blocked the ministry’s main entrance, calling for Edun to address them directly. Edun, in his statement, acknowledged the retirees’ grievances and explained that N22 billion of the allocated funds has already been disbursed, with the remaining N66 billion scheduled to be paid by the end of the year. He promised that additional payments would commence next week.
Edun attributed the delays to challenges stemming from the former pension system, assuring the retirees that the government is committed to clearing the backlog. “There has been a committee under the Head of Service, which has met with the Minister of Budget and myself. We have a plan for addressing the backlog under the Contributory Pension Scheme,” he explained.
For a sustainable solution, Edun revealed that the government is exploring the possibility of raising funds through the capital market to completely settle the pension backlog. “We’re working on a viable solution using the financial market to address the substantial arrears under the Contributory Pension Scheme,” he added.
The announcement marks a significant step toward addressing longstanding issues within Nigeria’s pension system and brings hope to thousands of retirees awaiting their dues.