The National Pension Commission (PenCom) has announced a major increase in monthly pension payments for retirees under the Programmed Withdrawal plan. The Director-General of PenCom, Ms. Omolola Oloworaran, disclosed that effective June 1, 2025, the monthly payout has risen from N8.3 billion to N11.9 billion, benefitting over 233,000 retirees.
Oloworaran made this known during the commission’s second quarter media briefing in Lagos, where she described the uplift as part of the “Pension Boost 1.0” initiative. She attributed the increase to strong investment returns on Retirement Savings Accounts (RSAs), backed by recent economic reforms by President Bola Ahmed Tinubu.
“This milestone builds on the President’s recent approval of N758 billion to clear longstanding pension liabilities. It reflects a bold and unprecedented commitment to restoring dignity and financial security to Nigerian retirees,” Oloworaran said.
She explained that the pension enhancement followed a reassessment of pension fund performance and the adoption of a Modified Standard Pension Enhancement Template, with the goal of ensuring greater retirement security for retirees under the Contributory Pension Scheme (CPS).
Oloworaran reassured retirees that further periodic pension increments would continue, and more pensioners would be included in future reviews. She also highlighted a significant improvement in the payment of accrued pension rights to retirees from treasury-funded ministries, departments, and agencies (MDAs).
“As of today, payments have been made to retirees who exited service up to March 2025. This marks a major improvement from previous years when arrears extended for over 21 months,” she noted. According to her, since November 2024, the Tinubu administration has ensured a consistent and timely release of funds, bringing Nigeria closer to completely clearing pension arrears.
Providing updates from the Pension Industry Leadership Retreat held in May, Oloworaran also announced the rebranding of the Micro Pension Scheme. She said the initiative has now been renamed the Personal Pension Plan, in a bid to boost its appeal, particularly to workers in the informal sector.
“The product is being rebranded and enhanced to simplify registration through tech-driven solutions and wider partnerships with trade groups. The informal sector remains a key catchment area for this initiative,” she said.
Among other resolutions from the retreat were:
- Channeling long-term pension funds into well-structured and de-risked infrastructure projects
- Improving project bankability and securing regulatory alignment
- Encouraging transparent investment vehicles
- Deepening collaboration with lawmakers through a pension-legislature working group
- Reviewing investment guidelines to expand exposure to alternative asset classes while strengthening risk management frameworks
These measures, Oloworaran added, are part of PenCom’s long-term strategy to enhance retirement benefits, deepen coverage, and drive inclusive growth within Nigeria’s pension system.
