Nigerian Govt Increases Monthly Pensions by 1,173% After 21-Year Wait
In what has been described as a historic move for social justice and elderly welfare, the Nigerian Federal Government has officially approved a staggering 1,173% increase in monthly pension payments for thousands of retirees. This long-awaited review, coming after a 21-year hiatus, marks a significant milestone in President Bola Ahmed Tinubu’s “Renewed Hope” agenda for senior citizens.
For over two decades, many retirees under the Nigeria Social Insurance Trust Fund (NSITF) struggled with monthly stipends that had been rendered nearly worthless by decades of inflation and economic shifts. Today, that narrative has changed.
The Details: A 1,173% Boost in Monthly Payouts
The National Pension Commission (PenCom), under the leadership of Director-General Ms. Omolola Oloworaran, recently finalized the upward review for approximately 2,116 retirees.
The scale of the increase is unprecedented:
- Total Monthly Payouts: Increased from ₦12.56 million to a massive ₦159.95 million.
- Individual Impact: In one remarkable instance, a retiree whose monthly pension was previously a mere ₦18,000 saw it skyrocket to ₦206,000.
- Pension Arrears: Beyond the monthly increase, the government has disbursed a total of ₦8.70 billion in backdated arrears. On average, verified retirees received approximately ₦3 million each in lump-sum payments.
Why Now? Correcting 21 Years of Stagnation
The last time these pensions were meaningfully reviewed was in 2005. For 21 years, these senior citizens lived on fixed incomes while the cost of living in Nigeria soared.
According to PenCom, this massive adjustment was made possible by the robust growth of the NSITF Fund. The fund grew from ₦54 billion at the time of its transfer in 2005 to an impressive ₦195 billion as of December 2025. This financial growth provided the “headroom” necessary for PenCom to invoke Section 53 of the Pension Reform Act (PRA 2014) and mandate a total overhaul of the payment structure.
Impact on the Nigerian Economy and Retiree Welfare
This move is expected to have a multi-dimensional impact on the lives of Nigerian pensioners:
- Restored Dignity: By aligning pensions with current economic realities, the government is helping retirees move above the poverty line.
- Economic Stimulation: The injection of ₦8.7 billion in arrears into the hands of over 2,000 families will likely stimulate local trade and consumption.
- Strengthened Trust in the CPS: This successful enhancement serves as a “proof of concept” for the Contributory Pension Scheme (CPS), showing that prudent fund management can lead to significant benefits for contributors.
How the Process Was Handled
To ensure transparency and eliminate the stress of physical verification—which has historically been a burden for the elderly—PenCom utilized advanced data verification methods. Trustfund Pensions Limited was directed to submit comprehensive proposals, leading to the seamless disbursement of funds to verified accounts.
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