‘We don’t profit from subscribers’ deaths,’ PenCom tells critics

Amid rising public anger, viral allegations and deeply emotional narratives surrounding pension administration in Nigeria, the National Pension Commission (PenCom) has vehemently rejected claims that it benefits from the death or prolonged suffering of retirees under the Contributory Pension Scheme (CPS).

 

The rebuttal comes as many retirees and families of deceased workers report that the journey to access benefits earned after decades of service is often tortuous, slow, confusing and exhausting. Out of this frustration has grown a dark allegation that the system somehow benefits when pensioners die before collecting their entitlements, reports Daily Sun.

 

However, this is an accusation the National Pension Commission (PenCom) says it can no longer ignore.

 

“We do not wish any retiree dead,” Director-General of PenCom, Ms. Omolola Oloworaran, declared emphatically in Lagos recently.

 

She added: “Our mandate is to protect contributors and retirees, not to punish them. Everything we are doing is about dignity, security and longevity.”

 

Investigations by Daily Sun show that the aforementioned grievances are not imagined. In previous years, many retirees openly complained about the layers of documentation, verification exercises and delays required before benefits were paid. For next of kin, the process could be even more traumatic, especially in cases where workers died in active service or shortly after retirement.

 

There have been disturbing reports of elderly retirees collapsing, and in some cases dying, while pursuing their entitlements. Whether anecdotal or documented, such stories have etched themselves into the national consciousness, reinforcing the belief that pension processes are deliberately tortuous.

 

At the heart of the mistrust is a recurring question Nigerians keep asking: What happens to the pension and gratuity of a worker who dies before accessing them?

 

In the absence of clear, accessible explanations, suspicion thrives. Many Nigerians believe that unclaimed pension funds simply revert to government coffers, disappearing without trace. And because government agencies are often perceived as opaque, the belief persists that delay works in the system’s favour.

 

PenCom insists this perception is false, but admits that poor communication in the past allowed it to fester. Contrary to claims of deliberate silence, several government ministries, departments and agencies have increasingly adopted the practice of publishing the names of deceased civil servants and security personnel in national newspapers, inviting their next of kin to come forward with valid documentation to claim benefits.

 

In 2015, the Nigeria Customs Service published names of deceased officers in national newspapers, where it called on families to report for documentation and payment. Similar notices were issued by paramilitary agencies under the Pension Transitional Arrangement Directorate (PTAD) in subsequent years.

 

One particularly revealing case involved a widow whose husband died in active service. For years, she pursued his gratuity without success. It was only when an acquaintance happened to read a newspaper, recognised her husband’s name among those published and alerted her, that she finally accessed the benefits meant for her family. Without that chance encounter, the money might have remained untouched indefinitely.

 

Yet, this raises another uncomfortable reality. In an age dominated by smartphones and social media, how many Nigerians, especially younger relatives of deceased workers, still read newspapers, listen to radio or watch traditional television news? As the saying goes, people often “perish for lack of knowledge.”

 

It was against this backdrop of pain, perception and policy gaps that the issue resurfaced at the 2025 Pension Revolution Summit and Media Conference in Lagos. Rather than responding defensively, Oloworaran chose to confront the allegation with reforms, data and a new vision for retirement in Nigeria.

 

Her argument was simple: a system that “wishes retirees dead” would not invest in their health, increase their pensions or pursue structural reforms aimed at long-term sustainability.

 

One of the clearest expressions of this philosophy is PenCARE, a free healthcare initiative targeting over 300,000 retirees nationwide. Co-funded by PenCom and Pension Fund Administrators (PFAs), the scheme is designed to provide health insurance coverage to pensioners already drawing monthly benefits under the Contributory Pension Scheme (CPS).

 

“We want our retirees to live long,” said Ahmed Lawan, Head of PenCom’s Compliance and Enhancement Department. “With this package, they can treat ailments early, before they become severe or terminal.”

 

Under the arrangement, PenCom will provide financial support, while PFAs will contribute through deductions from their Profit After Tax. The pooled funds will be used to procure healthcare plans from Health Maintenance Organisations in the names of eligible retirees. The pilot phase is scheduled for the first quarter of 2026.

 

For many observers, the symbolism is powerful. Healthcare is often the greatest fear of retirees, particularly in an inflationary economy where medical bills can quickly wipe out modest pensions. By addressing health directly, PenCom is signalling that retirement policy is not just about money, but about quality of life.

 

“This is not charity,” Oloworaran said. “It is about value. Every initiative we pursue is geared toward improving the lives of Retirement Savings Account holders and retirees.”

 

PenCARE sits within a broader reform framework Oloworaran calls Pension Revolution 2.0, what she describes as the most comprehensive overhaul of Nigeria’s pension industry since 2004.

 

“We didn’t do cosmetic reforms,” she said. “This was structural. New regulations, stronger supervision, governance reforms, digital transformation and industry realignment — all designed to future-proof the pension system.”

 

Under her watch, PenCom has recorded several milestones. Since July 2025, accrued pension rights have been paid with zero waiting time. Pension Boost 1.0 was introduced, increasing monthly pension payouts by N2.68 billion. Key processes such as Pension Clearance Certificates, benefit processing and contribution remittances have been automated, reducing human discretion and delays.

 

Enforcement has also tightened. Between January and November 2025, PenCom recovered N4 billion in unpaid pension contributions from defaulting employers. Stricter clearance requirements have improved compliance across the public and private sectors.

 

To further strengthen enforcement, Oloworaran has pledged collaboration with the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC) and organised labour.

 

“Pension compliance is not optional,” she said. “Employers who default deny workers their future.”

 

These regulatory efforts are backed by political action. In February 2025, President Bola Ahmed Tinubu approved a N758 billion bond to settle outstanding pension liabilities. The government also cleared pension increase arrears owed to federal retirees dating back to 2007 — a move widely welcomed by pensioners and analysts alike.

 

Another cornerstone of reform is recapitalisation of Pension Fund Administrators. PenCom has made it clear that operators must meet revised capital requirements by June 2027 or risk losing their licences.

 

“PFAs that cannot recapitalise can merge or be acquired,” Oloworaran said. “But non-compliance is not an option.”

 

Under the revised framework issued in September 2025, PFAs with assets under management below N500 billion must maintain a minimum capital base of N20 billion, while larger operators must add one per cent of assets above that threshold.

 

Supporters argue that stronger, better-capitalised PFAs will protect contributors and reduce systemic risk, further undermining claims of institutional neglect.

 

Beyond regulation, the Federal Government’s 2026 budget has added weight to PenCom’s argument. The government committed N334.54 billion to pension payments, covering statutory contributions for 674 ministries, departments and agencies, including parastatals, universities, teaching hospitals and security agencies.

 

Economic experts say the size of the provision reflects the government’s recognition of contributory pensions as a critical pillar of social protection and a major source of long-term domestic capital.

 

A closer look at the numbers shows the Nigeria Police Force receiving the largest allocation, N73.67 billion, as part of its broader personnel and operational budget. The Nigeria Security and Civil Defence Corps follows with N15.49 billion, while the Nigeria Correctional Service receives N8.46 billion.

 

Smaller agencies are also captured, demonstrating the wide reach of the pension system.

 

For retirees, the implication is reassurance: timely monthly payments and reduced delays in accessing lump-sum benefits. For the industry, it signals sustained political commitment.

 

The numbers support this narrative. As of October 2025, Nigeria’s total pension assets stood at N26.66 trillion, representing a 21.63 per cent year-on-year increase despite inflation, foreign exchange volatility and capital market uncertainty. Federal Government securities accounted for nearly 60 per cent of assets, providing stability and predictable returns.

 

Retirement Savings Account registrations also continue to rise, reflecting growing participation from formal sector workers and contributors under the Personal Pension Plan.

 

Yet, scepticism remains. Some Nigerians argue that regardless of reforms and budgets, what matters most is humane implementation, clear communication, faster processes and wages that reflect economic realities so workers can retire with dignity.

 

In the end, the debate may not be about whether the government or PenCom “wishes retirees dead,” but about whether the system consistently works for the people it was created to serve.

 

On that question, PenCom insists the answer is changing, and that the pension story Nigeria tells in the coming years will be less about despair, and more about dignity, trust and long life after service.