In a landmark decision that ends more than two decades of agitation, the Federal Government has approved a dramatic increase in pensions for retirees of the Nigeria Social Insurance Trust Fund (NSITF), marking one of the most significant pension adjustments in recent Nigerian history.
The approval, announced by the National Pension Commission (PenCom), grants NSITF retirees a staggering 1,173 percent increase in their monthly pensions after nearly 21 years of protests and complaints over stagnated benefits.
What Has Been Approved
According to PenCom, a total of 2,116 NSITF retirees will now receive a combined ₦159.95 million monthly pension, a sharp rise from the previous ₦12.56 million paid collectively each month.
Beyond the monthly increment, the retirees are also set to receive ₦8.70 billion in pension arrears, representing accumulated unpaid enhancements over the years.
On an individual level, the approval translates into a major financial turnaround for affected pensioners:
- Monthly pensions have increased from as low as ₦18,000 to over ₦206,000 per retiree.
- Each beneficiary will receive at least ₦3 million in pension arrears, with some receiving significantly more.
PenCom disclosed that in one documented case, a retiree whose pension stood at about ₦18,000 monthly will now earn over ₦206,000, alongside more than ₦8 million in arrears.
Presidential Backing and Policy Shift
The Commission said the approval was granted by Bola Ahmed Tinubu, describing the decision as a reflection of the current administration’s commitment to addressing long-standing welfare issues affecting Nigerian retirees.
The Director-General of PenCom, Omolola Oloworaran, also played a central role in pushing through the adjustment, which aligns NSITF pensions with statutory provisions and current economic realities.
“This marks the first pension increase for NSITF retirees in 21 years,” the commission stated, noting that the move corrects long-standing disparities and restores the real value of retirement benefits eroded by inflation.
Background: Two Decades of Stagnation
NSITF retirees have long complained that their pensions remained frozen despite rising living costs, currency depreciation, and multiple salary reviews in the public sector. Many retirees staged protests over the years, arguing that their benefits had become grossly inadequate to meet basic needs such as healthcare, housing, and feeding.
The lack of periodic pension reviews meant that some retirees survived on amounts that no longer reflected Nigeria’s economic realities, making the latest approval particularly significant.
Why This Matters
This decision goes beyond a routine pension review and carries broader national implications:
- Social Justice: It addresses a 21-year-old grievance that affected thousands of elderly Nigerians.
- Cost-of-Living Reality: The increase reflects the impact of inflation and the urgent need to protect retirees from poverty.
- Policy Signal: It sends a message that prolonged pension stagnation will no longer be ignored.
- Retiree Confidence: It may restore trust in government pension institutions and encourage compliance among current contributors.
For many beneficiaries, the adjustment represents not just financial relief but dignity after years of hardship.
What Happens Next
PenCom confirmed that disbursement of the revised monthly pensions and arrears has already commenced, with retirees expected to feel the impact immediately. Analysts say the move may also trigger renewed calls for reviews in other legacy pension schemes still operating under outdated structures.
As Nigeria continues to grapple with economic reforms, the NSITF pension approval stands out as a rare piece of good news for retirees—one that may redefine expectations around pension justice and government accountability.
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