The National Pension Commission (PenCom) has approved a landmark upward review of pensions for 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF), increasing their total monthly payments from N12.56 million to N159.95 million—an unprecedented 1,173% increase.
According to PenCom, this marks the first pension review for NSITF retirees in 21 years and is part of President Bola Ahmed Tinubu’s policy to improve the welfare of retirees in Nigeria. The payments were recently approved by PenCom Director General, Ms. Omolola Oloworaran, who has spearheaded reforms that have transformed the contributory pension landscape.
In addition to the enhanced monthly payments, retirees have received N8.70 billion in arrears, averaging around N3 million per retiree. In one notable case, a retiree’s monthly pension rose from N18,000 to N206,000, alongside arrears exceeding N8 million.
The enhancement was made possible by the significant growth of the NSITF Fund, which expanded from N54 billion in 2005 to N195 billion as of December 2025. PenCom emphasized that prudent fund management ensured the sustainability of the scheme while enabling the long-overdue review.
Established in 1993 as the successor to the National Provident Fund (NPF), the NSITF manages pension benefits for private sector employees. After the introduction of the Contributory Pension Scheme (CPS) under the Pension Reform Act (PRA) 2004, NSITF assets were transferred to Trustfund Pensions Limited for administration.
Under the PRA 2014 and the Constitution, periodic pension reviews are required at least every five years or in line with civil service salary adjustments. Despite this, NSITF pensions had not been reviewed since 2005. PenCom invoked Section 53 of the PRA to direct Trustfund Pensions Limited to implement the enhancement for verified retirees.
The move restores long-standing disparities, safeguards retiree welfare, and sets a precedent for timely pension adjustments in Nigeria.
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