The approval has led to an extraordinary surge in monthly pension payouts, jumping from ₦12.56 million to ₦159.95 million—an unprecedented 1,173% increase. This adjustment is part of broader reforms spearheaded by PenCom’s Director-General, Ms. Omolola Oloworaran, aimed at strengthening Nigeria’s Contributory Pension Scheme (CPS) and rectifying historical pension disparities that left many retirees struggling with meager incomes.
Beyond the monthly increase, PenCom has also settled a total of ₦8.7 billion in accumulated pension arrears, with individual retirees receiving an average of ₦3 million each in back payments. One particularly striking case involved a retiree whose monthly pension skyrocketed from ₦18,000 to ₦206,000, in addition to receiving over ₦8 million in arrears—a life-changing sum for many pensioners who had endured years of financial strain.
The pension enhancement was made possible by the significant growth of the NSITF fund, which expanded from ₦54 billion in 2005 to ₦195 billion as of December 2025. This growth reflects improved fund management, stricter regulatory oversight, and prudent investment strategies under PenCom’s stewardship.
The review aligns with the Pension Reform Act (PRA) 2014 and the Nigerian Constitution, which mandate periodic pension adjustments to ensure retirees’ benefits keep pace with economic realities. It also adheres to NSITF’s policy that minimum pensions should not fall below 80% of the national minimum wage—a benchmark that had been violated for years, leaving many pensioners in poverty.
To further ease the burden on elderly pensioners, PenCom has introduced the “VerifyMe” digital platform, replacing cumbersome physical verification exercises with a streamlined online process. This initiative is particularly beneficial for retirees who may face mobility challenges or live in remote areas.
Payments have already commenced for all verified NSITF retirees, with PenCom describing this development as a major milestone in restoring dignity and financial security to a group long neglected by the system. The move has been widely applauded as a significant step toward justice for pensioners who dedicated their working years to public service, only to face neglect in retirement.
This decision sets a precedent for future pension reviews and underscores PenCom’s commitment to ensuring retirees receive fair and timely benefits, in line with Nigeria’s pension reform objectives.
