PenCom Reviews NSITF Pensions After 21yrs, Raises Payments By Over 1,100%

The National Pension Commission, PenCom, has approved a historic upward review of pensions for 2,116 retirees under the Nigeria Social Insurance Trust Fund, NSITF, increasing their total monthly pension payments from ₦12.56 million to ₦159.95 million.

The review represents an over 1,100 per cent increase in total monthly pension payouts.

The approval, granted by the Director General of PenCom, Ms. Omolola Oloworaran, is in line with the Federal Government’s commitment under President Bola Ahmed Tinubu to improve the welfare and financial wellbeing of Nigerian retirees, particularly those affected by long standing pension disparities.

According to a statement by PenCom, this development marks the first pension increase for NSITF retirees in 21 years, correcting years of stagnation that significantly eroded the value of their benefits. The review restores pensions to levels more consistent with statutory provisions and current economic conditions.

In addition to the enhanced monthly payments, PenCom approved the disbursement of ₦8.70 billion in pension arrears to the affected retirees. On average, each beneficiary received about ₦3 million in outstanding payments, providing substantial relief to pensioners.

In a notable instance, the monthly pension of one NSITF retiree was increased from about ₦18,000 to ₦206,000, while the retiree also received over ₦8 million in accumulated arrears. Similar adjustments were effected across the pool of verified beneficiaries.

PenCom attributed the successful implementation of the pension review to the significant growth of the NSITF Fund, which expanded from ₦54 billion in 2005 to ₦195 billion as of December 2025. The growth reflects prudent fund management under PenCom’s regulatory oversight and provided the financial capacity to execute the long overdue enhancement while preserving the Scheme’s sustainability.

The NSITF was established in 1993 as the successor to the National Provident Fund and managed pension benefits for private sector employees prior to the introduction of the Contributory Pension Scheme under the Pension Reform Act, PRA, 2004. Following the reform, the assets of the defunct NSITF Scheme were transferred to Trustfund Pensions Limited for administration.

PenCom noted that Sections 39(3) of the PRA 2014 and 173(3) of the 1999 Constitution mandate periodic pension reviews at intervals not exceeding five years. However, the last review of NSITF pensions was carried out in 2005, prompting regulatory action to address the prolonged non compliance.

To ease the process for pensioners, PenCom approved the deployment of the “VerifyMe” digital solution for automated revalidation of NSITF retirees. The initiative eliminated the need for physical verification exercises, thereby reducing stress for senior citizens and improving service efficiency.

PR/Umbwanko Baba/ Ene Idoko