PenCom Approves 1,173% Pension Increase for NSITF Retirees After 21 Years

The National Pension Commission has approved a major increase in pension benefits for retirees under the Nigeria Social Insurance Trust Fund, ending a 21-year freeze on payments.

The decision affects 2,116 retirees and raises combined monthly pension payments from N12.56 million to N159.95 million. Individual pensions that were previously as low as N18,000 per month have been increased to over N200,000.

In addition to the revised monthly payments, the Commission approved the settlement of N8.7 billion in pension arrears, translating to average lump-sum payments of about N3 million per retiree.

The Commission said the adjustment represents the first pension review for NSITF beneficiaries since 2005 and was enforced in line with existing pension laws that mandate periodic reviews. It noted that prolonged failure to adjust payments despite rising inflation had severely eroded retirees’ welfare.

PenCom said the increase was made possible by significant growth in the NSITF fund, which expanded from N54 billion in 2005 to N195 billion by the end of last year, adding that the adjustment would not compromise the long-term sustainability of the fund.