PenCom Approves Big Pension Rise for 2,116 NSITF Retirees
By Patience Ikpeme
The National Pension Commission (PenCom) has approved a major increase in the monthly pensions of 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF), raising the total amount paid to them every month from ₦12.56 million to ₦159.95 million.
The approval, given by the Director General of PenCom, Ms. Omolola Oloworaran, means the retirees will now receive far more money each month than they did before. In simple terms, the total monthly payout has gone up by more than eleven times.
“This is the first time these pensioners are getting a review of their benefits in 21 years, and it is meant to restore the real value of what they are paid in line with the law and today’s economic realities,” a senior official at the Commission said.
Along with the higher monthly payments, the 2,116 retirees have also been paid ₦8.70 billion in pension arrears. This means they received money that had built up over the years because their pensions were not reviewed when they should have been. On average, each retiree got about ₦3 million as back payment.
One of the retirees saw his monthly pension rise from about ₦18,000 to ₦206,000. The same person was also paid more than ₦8 million in arrears, according to the Commission.
PenCom explained that the increase was made possible because the NSITF fund has grown strongly over the years. The fund stood at about ₦54 billion in 2005 when it was transferred after pension reforms, but by December 2025, it had grown to around ₦195 billion. Officials said this growth gave enough financial space to raise pensions while still keeping the scheme stable for the future.
The NSITF was set up in 1993 to manage pensions for private sector workers before Nigeria moved to the Contributory Pension Scheme under the Pension Reform Act of 2004. After the new system began, the assets of the old NSITF scheme were handed over to Trustfund Pensions Limited, which was asked to manage the money and pay benefits to those who had already retired or were close to retirement under the old system.
By law, pensions are supposed to be reviewed at least every five years or whenever salaries in the Federal Civil Service are reviewed. The rules of the NSITF also say that the minimum pension should not be less than 80 percent of the national minimum wage. However, officials said the last time NSITF pensions were reviewed was in 2005.
Because of this long delay, PenCom said it used its powers under the Pension Reform Act to direct Trustfund Pensions Limited to prepare a full plan for increasing the pensions. After studying the proposal, the Commission gave its approval for the new rates.
Payments have already been made to retirees who have been properly verified. To make the process easier for elderly pensioners, PenCom also approved the use of a digital system called “VerifyMe” to confirm the identity of NSITF pensioners. This means many of them no longer need to travel for physical checks before they can receive their money.
A PenCom official said the goal is to make life easier for retirees while making sure payments are made only to the right people. “We want a system that is fair, simple and secure, so our senior citizens can receive their pensions without stress,” the official said.
The Commission said the increase is part of a wider effort to improve the welfare of retirees and ensure that pension laws are fully followed, especially for those who have waited many years to see their benefits adjusted.
