The National Pension Commission (PenCom) has approved a historic pension increase for 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF), marking the first adjustment in 21 years.
The enhancement, described by PenCom as unprecedented, raised monthly pension payments from N12.56 million to N159.95 million, representing a staggering 1,173 per cent increase.
The affected retirees have also received N8.70 billion in arrears, averaging about N3 million per retiree.
“This milestone reflects President Bola Tinubu’s policy drive to improve the welfare of retirees and is part of PenCom’s continued reforms to strengthen the Contributory Pension Scheme,” said PenCom Director-General, Ms.
Omolola Oloworaran, on Wednesday.
The adjustment increased individual retiree payments from approximately N18,000 to N206,000 per month, alongside arrears exceeding N8 million, effectively restoring the value of pensions in line with statutory provisions and prevailing economic realities.
PenCom credited the pension increase to the robust growth of the NSITF Fund, which expanded from N54 billion in 2005 to N195 billion by December 2025.
The growth, the commission noted, reflected prudent fund management and provided the necessary financial headroom for the long-overdue review while safeguarding scheme sustainability.
The NSITF, established in 1993 as the successor to the National Provident Fund, manages pension benefits for private-sector employees prior to the introduction of the Contributory Pension Scheme (CPS) under the Pension Reform Act (PRA) 2004.
Following the reform, assets under the NSITF scheme were transferred to Trustfund Pensions Limited, which administers benefits to existing and deferred retirees.
Although the law, under Section 39(3) of the PRA 2014 and Section 173(3) of the Nigerian Constitution, mandates pension reviews at least every five years or in line with civil service salary adjustments, the last adjustment for NSITF retirees occurred in 2005.
To address the prolonged non-compliance, PenCom invoked Section 53 of the PRA 2014, directing Trustfund Pensions Limited to submit a comprehensive proposal for pension enhancement.
The commission also introduced the “VerifyMe” digital solution, allowing automated verification of retirees to eliminate the burdens of physical pension validation.
PenCom said the initiative has improved service efficiency for senior citizens and expedited disbursements.
“Payments have now been made to verified retirees, ensuring that long-standing disparities are corrected and benefits restored,” PenCom stated.
