The National Pension Commission, PenCom, has approved a historic upward review of pensions for 2,116 retirees under the Nigeria Social Insurance Trust Fund, NSITF, raising their combined monthly pension payout from ₦12.56 million to ₦159.95 million—an unprecedented 1,173 per cent increase.
The approval represents a major milestone in the Federal Government’s commitment to improving the welfare of retirees and aligns with President Bola Ahmed Tinubu’s broader social protection and pension reform agenda.
The review, authorised by the Director-General of PenCom, Omolola Oloworaran, ends over two decades of stagnation in NSITF pension payments. It is the first pension adjustment for affected retirees in 21 years, correcting long-standing inequities and restoring the real value of benefits in line with statutory requirements and prevailing economic realities.
Beyond the enhanced monthly payments, the retirees have also received ₦8.70 billion in accumulated pension arrears, with an average payment of about ₦3 million per beneficiary. In one notable case, a retiree’s monthly pension rose from about ₦18,000 to over ₦206,000, alongside arrears exceeding ₦8 million.
The pension enhancement was made possible by the sustained growth of the NSITF Fund, which expanded from ₦54 billion at the point of asset transfer in 2005 to ₦195 billion as of December 2025. The growth reflects prudent fund management under PenCom’s strict regulatory oversight and provided the financial capacity to implement the long-overdue review while preserving the Scheme’s long-term sustainability.
The NSITF, established in 1993 as a successor to the National Provident Fund, managed pension benefits for private-sector employees before the introduction of the Contributory Pension Scheme under the Pension Reform Act of 2004. Following the reforms, NSITF pension assets were transferred to Trustfund Pensions Limited for continued administration of benefits to existing and deferred pensioners.
Nigerian law mandates periodic pension reviews at least every five years or in line with salary adjustments in the Federal Civil Service, while NSITF policy stipulates that minimum pensions should not fall below 80 per cent of the national minimum wage. Despite these provisions, NSITF pensions had remained unchanged since 2005.
To address the prolonged non-compliance, PenCom exercised its powers under the Pension Reform Act and directed Trustfund Pensions Limited to submit a comprehensive pension enhancement proposal, culminating in the current approval and payments.
PenCom also introduced a digital verification solution, VerifyMe, to streamline pensioner revalidation. The platform eliminated the need for physical verification exercises, easing the process for elderly retirees and improving service efficiency.
The development marks a significant step in restoring confidence in Nigeria’s pension system and reaffirming government’s responsibility to safeguard the dignity and welfare of retired citizens.
