PenCom approves major NSITF pension increase

…Clears N8.7bn arrears
Barbara Bako, Abuja.

The National Pension Commission (PenCom) has approved a substantial upward adjustment in pension benefits for 2,116 retirees under the Nigeria Social Insurance Trust Fund (NSITF), resulting in a sharp rise in monthly payments and the settlement of outstanding arrears.

Following the review, total monthly pension disbursements increased from N12.56 million to N159.95 million, representing a 1,173 per cent jump.

The adjustment, the first for NSITF pensioners in over two decades, is aimed at correcting long-standing benefit shortfalls and aligning payments with existing legal provisions.

In addition to the monthly increase, PenCom authorised the release of N8.70 billion in pension arrears to the affected retirees. On average, each beneficiary received about N3 million in back payments.

A breakdown of the adjustment showed that in one case, a retiree’s monthly pension rose from roughly N18,000 to N206,000, while arrears paid exceeded N8 million.

The approval was granted by PenCom’s Director-General, Ms Omolola Oloworaran, as part of efforts to ensure improved welfare for retirees and strengthen compliance with pension laws governing legacy schemes.

PenCom explained that the pension review was made possible by the steady growth of the NSITF Fund, which expanded from N54 billion in 2005, when the assets were transferred, to N195 billion as at December 2025.

According to the Commission, sound fund management and regulatory oversight created the fiscal space needed to implement the increase without jeopardising the sustainability of the scheme.

The NSITF was established in 1993 to manage pension benefits for private sector employees before the launch of the Contributory Pension Scheme under the Pension Reform Act 2004.

Read also:IMPR lauds establishment of Tax Ombudsman, pledges strategic media support

Its assets were later transferred to Trustfund Pensions Limited, which was mandated to administer payments to existing and deferred pensioners.

Under Section 39(3) of the Pension Reform Act 2014 and Section 173(3) of the Constitution, pension benefits are required to be reviewed at intervals not exceeding five years or whenever there is a salary review in the public service.

The NSITF Benefits Payment Policy also provides that minimum pensions should be at least 80 per cent of the prevailing national minimum wage.
Despite these requirements, NSITF pensions remained unchanged since 2005.

PenCom said it relied on Section 53 of the PRA 2014 to enforce compliance, directing Trustfund Pensions Limited to submit a detailed proposal for the long-overdue adjustment.

So far, payments have been made to retirees who have completed verification.

To simplify the process, the Commission approved the use of the “VerifyMe” digital platform, enabling automated revalidation of pensioners and removing the need for physical verification exercises.