The National Pension Commission (PenCom) has sanctioned a substantial pension increase for 2,116 retirees of the Nigeria Social Insurance Trust Fund (NSITF), raising aggregate monthly disbursements from N12.56 million to N159.95 million.
The adjustment represents a remarkable 1,173% increase in total monthly pension payments.
In a statement, PenCom described the development as “another significant achievement under President Bola Ahmed Tinubu’s administration, which prioritizes improved welfare for Nigerian retirees. The payments received recent approval from PenCom’s Director General, Ms. Omolola Oloworaran, whose leadership has driven transformative reforms within the Contributory Pension Scheme.
“This represents the first pension enhancement for NSITF retirees in over two decades, correcting longstanding inequities and aligning benefits with statutory requirements and current economic realities.
“The 2,116 NSITF retirees have also received N8.70 billion in accumulated pension arrears, averaging approximately N3 million per beneficiary. In one notable case, a retiree’s monthly pension jumped from roughly N18,000 to N206,000, while also receiving over N8 million in backdated payments.
“The increase was made possible by substantial growth in the NSITF Fund, which expanded from N54 billion in 2005 to N195 billion by December 2025. This growth demonstrates effective fund management under PenCom’s oversight and created the financial capacity needed for the overdue review without compromising the Scheme’s long-term viability.
“Established in 1993 to replace the National Provident Fund (NPF), the NSITF previously administered pension benefits for private sector workers before the Contributory Pension Scheme (CPS) was introduced under the Pension Reform Act (PRA) 2004. After this reform, NSITF pension assets were transferred to Trustfund Pensions Limited for management and benefit administration.
“Section 39(3) of the PRA 2014, alongside Section 173(3) of Nigeria’s Constitution, requires pension reviews at minimum five-year intervals or whenever Federal Civil Service salaries are revised. Additionally, NSITF policy stipulates that minimum retirement pensions should equal at least 80% of the current National Minimum Wage. However, NSITF pensions had not been reviewed since 2005.
“To address this extended period of non-compliance, PenCom invoked Section 53 of the PRA 2014, which mandates that NSITF benefits be administered according to the Scheme’s governing provisions. PenCom subsequently instructed Trustfund Pensions Limited to develop a detailed enhancement proposal. Payments to verified NSITF retirees are currently underway.”
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