The National Pension Commission (PenCom) has approved a landmark upward review of pension benefits for 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF).
This will increase total monthly payouts from ₦12.56 million to ₦159.95 million.
The decision represents a 1,173 per cent increase in monthly pension payments and marks the first adjustment to NSITF pensions in 21 years.
The approval, granted by the Director General of PenCom, Ms. Omolola Oloworaran, aligns with President Bola Tinubu’s policy direction on enhancing retiree welfare and strengthening Nigeria’s social protection framework.
As part of the review, PenCom said affected retirees have also received ₦8.70 billion in accumulated pension arrears, translating to an average arrears payment of about ₦3 million per beneficiary.
In one case highlighted by the Commission, a retiree’s monthly pension rose from approximately ₦18,000 to ₦206,000, alongside the payment of more than ₦8 million in arrears.
PenCom attributed the adjustment to the substantial growth of the NSITF Fund, which expanded from ₦54 billion in 2005 to ₦195 billion as of December 2025.
According to the Commission, the growth reflects prudent fund management under its regulatory oversight and provided the financial capacity to implement the long-delayed enhancement while maintaining the Scheme’s long-term sustainability.
The NSITF, established in 1993 as the successor to the National Provident Fund (NPF), administered pension benefits for private sector workers prior to the introduction of the Contributory Pension Scheme (CPS) under the Pension Reform Act (PRA) 2004.
Following the reform, NSITF pension assets were transferred to Trustfund Pensions Limited, which was mandated to manage the Scheme’s assets and administer benefits for existing and deferred pensioners.
PenCom noted that Section 39(3) of the PRA 2014 and Section 173(3) of the 1999 Constitution mandate pension reviews at least every five years or in line with salary adjustments in the Federal Civil Service.
Additionally, the NSITF Benefits Payment Policy stipulates that the minimum pension must not be less than 80 per cent of the National Minimum Wage.
Despite these statutory provisions, NSITF pensions had remained unchanged since 2005. In response, PenCom invoked Section 53 of the PRA 2014 and directed Trustfund Pensions Limited to submit a comprehensive enhancement proposal, culminating in the current approval.
The Commission confirmed that payments have been made to verified NSITF retirees and said efforts are ongoing to reach all eligible beneficiaries.
To streamline the process, PenCom also approved the deployment of the “VerifyMe” digital solution, enabling automated revalidation of pensioners and eliminating the need for physical verification exercises.
According to the Commission, the digital initiative has improved service delivery and reduced stress for elderly pensioners.
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