PenCom Slams 1,173% Pension Boost on NSITF Retirees, Clears N8.7bn Arrears

By Linda Ike

The National Pension Commission (PenCom) has approved a massive 1,173 percent increase in monthly pensions for 2,116 Nigeria Social Insurance Trust Fund (NSITF) retirees, raising total payouts from N12.56 million to N159.95 million.

Director General of PenCom, Omolola Oloworaran approved the first review in 21 years, fulfilling Section 39(3) of the Pension Reform Act (PRA) 2014 and Section 173(3) of the Constitution, which mandate increases every five years or with salary reviews.

N8.70 billion in arrears was disbursed, averaging N3 million per retiree. Example, One retiree’s pension jumped from N18,000 to N206,000 monthly, and over N8 million arrears.

NSITF Fund grew from N54 billion in 2005 to N195 billion in Dec 2025, enabling sustainable hikes.

NSITF, successor to the 1993 National Provident Fund, managed pre-2004 private sector pensions transferred to Trustfund Pensions Limited post-Pension Reform Act.

PenCom invoked Section 53 of PRA 2014 to enforce compliance after 2005’s last review, directing Trustfund to propose enhancements aligned with the 80 percent National Minimum Wage policy.

PenCom deployed “VerifyMe” digital tools for seamless verification, eliminating physical checks and boosting efficiency for retirees.