The National Pension Commission (PenCom) has introduced a new initiative, Pension Boost 1.0, to increase monthly pension payouts for more than 233,000 retirees enrolled under the Contributory Pension Scheme (CPS).
Th enhancement is part of broader efforts to improve retirement benfits and strengthen the sustainability of Nigeria’s pension system.
This, the commission’s Director General, Ms. Omolola Oloworaran, announced the development at the commission’s second quarter media briefing in Lagos at the weekend
According to her, the total monthly pension payout has risen from N8.3 billion to N11.9 billion, effectively June 2025, following the implementation of the new enhancement template.
“This is the every retiree has been waiting for,” Oloworaran said. “The upward adjustment is based on the balances in individual Retirement Savings Account (RSAs) and reflects the improved performance of pension fund investments”
She also explained that increase was made possible by the commission’s revised Standard Pension Enhancement Template, which enables pension increments in line with returns on RSA investments.
The model, she said, supports a performance based structure that allows retirees to benefit from economic improvements.
The initiative, she noted, is part of broader efforts by the commission to ensure the long term sustainability and adequacy of pension benefits, while reinforcing confidence in Nigeria’s pension system.
In addition to the enhanced payout, the commission also reported significant progress in clearing outstanding pension liabilities. Oloworaran confirmed that all retirees who exited service up to March 2025 have received their accrued pension rights and ongoing monthly entitlements.
She attributed the progress to the recent release of funds by the Federal Government, including the approval of a N758 billion bond by the President Bola Ahmed Tinubu to offset pension arrears.
“We have witnessed consistent releases of pension funds since November last year. The backlog is being cleared, and the end the of pension arrears is in sight,”
she said.
The DG used the briefing to commend the federal government for its commitment to pension reforms, describing the intervention as a “landmark move” that has revitalized the sector.
She also issued a warning to employers and Pension Fund Administrators (PFAs) lagging behind in compliance, stating that the commission will enforce stricter measures going forward.
“To employers with late remittances, your grace is over. And to underperforming operators, expect consequences,” she warned. “The pension industry must realize that a new era has begun, one anchored on transparency, accountability, and the protection of workers’ retirement benefits,”
Meanwhile, Nigerian’s pension fund assets rose to N23.26 trillion in February 2025, marking a 1.77 per cent increase from N22.86 trillion recorded in January. The figure, released in Pencom’s monthly report, underscores continued growth and stability in the sector.
The commission reaffirmed its commitment to building an inclusive, resilient pension system that safeguards the welfare of workers and retirees across the country.
