BY SAM OTUONYE
The federal government has urged civil servants to take the ongoing mandatory pension verification and enrollment seriously, noting that its importance cannot be overemphasized.
The charge was against the backdrop of the low turnout that has greeted the ongoing nationwide online exercise being conducted by the National Pension Commission (PenCom) for all active employees of treasury-funded Ministries, Departments and Agencies (MDAs) who were employed before 30 June 2004.
In a circular issued on 27 April 2026, Mrs. Didi Esther Walson-Jack, Head of the Civil Service of the Federation, directed all treasury-funded MDAs to support the exercise. The circular emphasised that verification is essential for determining the Federal Government’s outstanding pension liabilities and making adequate budget provisions for their settlement.
The initiative is part of the Federal Government’s efforts to settle pension obligations carried over from the old Defined Benefit Scheme (DBS), which existed before the introduction of the CPS in 2004. Under Section 15 (1) of the Pension Reform Act 2014 (PRA 2014), employees who moved to the CPS are entitled to accrued pension rights, representing benefits earned under the DBS.
To fund these obligations, the law provides for the establishment of the Retirement Benefits Bond Redemption Fund, domiciled with the Central Bank of Nigeria (CBN).
The exercise, which commenced on 2 February 2026 and will end on 31 July 2026, is aimed at capturing accurate and complete data on eligible workers. This will support the timely payment of their accrued pension rights under the Contributory Pension Scheme (CPS).
Exercise to Address Legacy Pension Liabilities.
Prior to the automation of the exercise by PenCom a few years ago, the process relied on manual processes that were often affected by incomplete records and delays. The current exercise is fully digital and a significant technological improvement from the initial Online Enrolment platform.
PenCom has now deployed the new Contributions and Bond Redemption Application (COBRA), a secure platform designed to support real-time data capture, validation and processing. The platform includes multiple layers of verification, such as biometric capture and cross-checking of employment records. This helps to improve data accuracy and reduce errors that could delay pension payments at retirement.
To ensure smooth implementation and avoid system congestion, the exercise has been structured in phases. The first phase, which ran from 2 February to 31 March 2026, covered employees expected to retire between January 2027 and December 2029.
The ongoing second phase, from 1 April to 31 July 2026, is for employees who will retire from January 2030 onwards.
PenCom noted that the phased approach will improve coordination, enhance monitoring and ensure that all eligible employees are captured within the timeline.
However, the Commission noted that despite these arrangements, participation has remained below expectations, leading to a directive from the Head of Service mandating full compliance by all treasury-funded MDAs.
MDAs are required to upload details of eligible employees on the COBRA platform, after which affected employees are to visit their respective Pension Fund Administrators (PFAs) with the necessary documents to complete the process.
Pension Desk Officers (PDOs), trained by PenCom, are responsible for coordinating the exercise within their organisations and guiding staff through the process.
PenCom has asked employees to participate in the exercise to enable for the computation of the employees’ accrued pension rights and advise the Federal Government of same for adequate provision to be made. This would further ensure seamless access to benefits immediately after a worker retires.
With the deadline approaching, the Federal Government has directed Permanent Secretaries and Heads of MDAs to widely publicise the directive and ensure full participation, noting that
failure to take part in the exercise may complicate the processing of accrued pension rights at retirement and could lead to delays in accessing benefits.
