PenCom Approves Significant Pension Hike for 2,116 NSITF Retirees, Pays N8.7 Billion in Arrears

The Director General/Chief Executive of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, announced on Wednesday that the commission has approved a substantial upward adjustment to the pensions of 2,116 retirees from the Nigeria Social Insurance Trust Fund (NSITF).

This enhancement represents a remarkable 1,173 percent increase, raising the total monthly pension disbursements from N12.56 million to N159.95 million. Consequently, these NSITF retirees have received N8.70 billion in accumulated pension arrears, averaging approximately N3 million per retiree. This marks the first pension revision for NSITF retirees in two decades, rectifying long- standing imbalances and restoring the value of benefits to align with statutory requirements and current economic realities.

Ms. Oloworaran stated in a release that this NSITF pension increase is another significant achievement under President Bola Tinubu's agenda to improve the well-being of retirees across the nation.

The PenCom chief executive has been instrumental in implementing major reforms that have reshaped the Contributory Pension Scheme (CPS).

Specifically, the monthly pension for an NSITF retiree has been elevated from around N18,000 to N206,000. In addition to this monthly increase, retirees have also been paid over N8 million in arrears, according to the statement.

PenCom attributed this enhancement to the considerable growth of the NSITF Fund, which expanded from N54 billion at the time of its transfer in 2005 to N195 billion by December 2025.

This financial growth, achieved through diligent fund management under PenCom's strict oversight, has created the necessary financial capacity to implement the long-awaited pension review while ensuring the scheme's long- term viability.

The NSITF, established in 1993 as the successor to the National Provident Fund (NPF), was responsible for managing pension benefits for private sector employees before the introduction of the CPS under the Pension Reform Act (PRA) 2004.

Following the reform, pension assets associated with the former NSITF Scheme were transferred to Trustfund Pensions Limited, which was tasked with managing these assets and distributing benefits to current and deferred pensioners.

Key legislation, including Section 39(3) of the PRA 2014 and Section 173(3) of the Nigerian Constitution, mandates that pensions be reviewed periodically, at least every five years, or in sync with salary reviews within the Federal Civil Service.

Additionally, the NSITF Benefits Payment Policy stipulates that the minimum retirement pension should be at least 80 percent of the prevailing National Minimum Wage.

Despite these provisions, the last review of NSITF pensions took place in 2005, the commission noted.

In response to this sustained non-compliance, PenCom exercised its authority under Section 53 of the PRA 2014, which requires that benefits under the NSITF scheme be managed according to the scheme's established terms.

Consequently, PenCom instructed Trustfund Pensions Limited to present a comprehensive proposal for pension enhancement.

The commission further explained, "Payments have been successfully processed for verified NSITF retirees. To streamline the verification process for pensioners, PenCom has approved the implementation of the ‘VerifyMe’ digital solution, facilitating automated revalidation of NSITF pensioners.

"This innovation has eliminated the need for physical verification, thereby improving service delivery for our senior citizens."

James Emejo