The National Pension Commission (PenCom) has approved a historic 1,173% increase in pensions for retirees under the Nigeria Social Insurance Trust Fund (NSITF), ending a 21-year freeze that had left thousands struggling with stagnant incomes. Announced on Wednesday by PenCom’s Director-General, Ms. Omolola Oloworaran, the decision marks the first adjustment since 2005 and significantly improves the welfare of over 2,100 retirees.
Under the new arrangement, retirees who were previously receiving as little as N18,000 per month will now earn about N206,000. Combined monthly payments will jump from N12.56 million to N159.95 million, while a total of N8.70 billion in arrears will be disbursed. Some beneficiaries will receive lump-sum payments exceeding N8 million, correcting decades of underpayment and financial neglect.
PenCom described the pension adjustment as a correction of long-standing structural inequities in the NSITF legacy scheme. “This is the first pension increase for NSITF beneficiaries since 2005, and it is a long-overdue correction of structural injustice within the legacy scheme,” Oloworaran said. The Commission invoked Section 53 of the Pension Reform Act 2014 to enforce compliance, emphasizing that pensions should reflect economic realities and statutory requirements.
The 21-year freeze left many private-sector retirees struggling to meet basic living costs despite clear legal provisions requiring periodic reviews. Pensions under NSITF had remained unchanged even as inflation and cost-of-living pressures soared. PenCom highlighted that minimum retirement pensions should align with at least 80% of the National Minimum Wage, and the recent adjustment is a step toward restoring fairness and dignity to long-neglected pensioners.
The pension increase was made possible by the significant growth of the NSITF Fund, which expanded from N54 billion in 2005 to N195 billion by December 2025 under careful regulatory oversight. PenCom also introduced the “VerifyMe” digital solution to streamline pensioner verification, reducing stress and errors while ensuring that payments reach eligible retirees. The move reinforces confidence in Nigeria’s pension system, showing that robust fund management and digital reforms can translate into real welfare gains for retirees.
source: nairametrics