In a significant move, the National Pension Commission (PenCom) has approved a massive increase in pensions for 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF). The total monthly pension payout has jumped from N12.56 million to N159.95 million, marking a staggering 1,173% enhancement. This is a welcome relief for retirees who have been waiting for over two decades for a pension review.
This increase is a milestone in President Bola Ahmed Tinubu’s efforts to improve the welfare of retirees in Nigeria. The Director General of PenCom, Ms. Omolola Oloworaran, has been instrumental in driving reforms that have transformed the Contributory Pension Scheme. The NSITF retirees have also received N8.70 billion in pension arrears, with an average payment of N3 million per retiree. One retiree’s monthly pension was increased from N18,000 to N206,000, with an arrears payment of over N8 million.
The enhancement is supported by the significant growth of the NSITF Fund, which has risen from N54 billion in 2005 to N195 billion as of December 2025. This growth is a testament to prudent fund management under PenCom’s supervision. The review addresses long-standing disparities and restores the value of benefits in line with statutory provisions and economic conditions. It’s a step towards ensuring that retirees receive fair compensation for their years of service.
The NSITF was established in 1993 and managed pension benefits for private sector employees before the introduction of the Contributory Pension Scheme. Despite provisions for periodic reviews, pensions were last reviewed in 2005. PenCom’s intervention has finally brought relief to these retirees, and it’s a move that will have a positive impact on their lives.
