The Nigerian government has approved a significant increase in pension benefits for retirees of the Nigeria Social Insurance Trust Fund (NSITF). After nearly 21 years without a review, the National Pension Commission (PenCom) has announced a 1,173 percent increment in monthly pensions for 2,116 NSITF retirees. This move is expected to improve the welfare of retirees, with the monthly pension rising from N12.56 million to N159.95 million.
The retirees will also receive a substantial amount in pension arrears, totaling N8.70 billion. On average, each retiree will receive approximately N3 million in arrears, with some individuals receiving as much as N8 million. One retiree’s monthly pension, for instance, has been increased from N18,000 to N206,000, highlighting the significant enhancement of benefits.
The approval, given by President Bola Ahmed Tinubu and PenCom Director General Ms. Omolola Oloworaran, demonstrates the government’s commitment to addressing the long-standing disparities in pension benefits. This development marks the first pension increase for NSITF retirees in 21 years, aiming to restore the value of benefits in line with statutory provisions and prevailing economic conditions.
The pension increment is a notable step towards improving the livelihoods of NSITF retirees, who have been awaiting this review for over two decades. With the enhanced benefits, retirees can expect a more secure financial future, alleviating some of the challenges they have faced. The move also underscores the government’s efforts to prioritize the welfare of its citizens, particularly vulnerable groups such as retirees.
The implementation of this pension increase is a significant development in Nigeria’s pension sector, highlighting the importance of regular reviews to ensure that benefits keep pace with economic conditions. As the country continues to navigate its economic landscape, this move is expected to have a positive impact on the lives of NSITF retirees, providing them with a more stable and secure financial foundation.
