The Director-General of the National Pension Commission, Ms Omolara Oloworaran, has revealed that over 233,000 retirees on the Programmed Withdrawal plan would benefit from the improvement in the monthly payout, which has increased to N11.9bn from N8.3bn.
Oloworaran disclosed this at the second quarter press briefing held in Lagos.
Describing the increase in the monthly pensions as the Pension Boost 1.0, she noted that it was only possible on the back of strong investment returns on Retirement Savings Accounts.
She said, “Effective June 1, 2025, monthly pension payments will rise from N8.3bn to N11.9bn, benefitting over 233,000 retirees on the Programmed Withdrawal plan. This uplift is driven by strong investment returns on retirement savings accounts made possible by the ongoing economic reforms of President Bola Ahmed Tinubu.
“This milestone builds on the President’s recent approval of N758 bn to clear longstanding pension liabilities, a bold and unprecedented move that reflects his clear commitment to restoring dignity and financial security to Nigerian retirees.
“The pension boost follows a comprehensive reassessment of pension fund performance and the adoption of a new Modified Standard Pension Enhancement Template. This initiative also supports ongoing efforts at enhancing the adequacy of pension benefits for CPS retirees towards ensuring greater retirement security.”
Oloworaran went on to reassure retirees that periodic pension increments will be sustained, with more retirees expected to benefit in subsequent exercises.
The PenCom DG also revealed significant improvement in the payment of accrued pension rights to retirees of treasury-funded ministries, departments, and agencies.
She said that under President Tinubu’s administration, the Federal Government has consistently released funds to settle accrued rights.
“As of today, payments have been made to retirees who exited service up to March 2025. This is a marked improvement from the previous backlog, where arrears extended for up to 21 months. Since November 2024, the process has been remarkably stable, with the timely and consistent release of funds by the Federal Government. We are on the verge of totally eliminating arrears in the payment of accrued rights, which would be a significant milestone indeed. This would clearly open a new vista of prompt payment of benefits to all retirees under the CPS, in alignment with the pension reform objectives,” Oloworaran disclosed.
Providing insights into the outcomes of the maiden edition of the Pension Industry Leadership Retreat held in May, the DG said stakeholders have agreed to a rebrand of the micro pension scheme.
Oloworaran at the media stakeholders conference in December hinted at the rebranding, a move she said would open up the product for more players in the informal sector.
Speaking on Thursday, Oloworaran said, “This has been renamed as the Personal Pension Plan to appeal to the broad sectors it covers. The product is being rebranded and enhanced to simplify registration through tech-driven solutions and broader partnerships with trade groups to significantly boost enrolment and fund growth. The informal sector remains the key catchment area for the personal pension plan, offering workers in this sector the platform to save for their retirement.”
Other resolutions made at the retreat include channelling long-term pension assets into well-structured, de-risked infrastructure projects, improving project bankability, securing regulatory alignment, encouraging the development of transparent investment vehicles, deepening collaboration with lawmakers by establishing regular engagement mechanisms, including a pension-legislature working group, and reviewing the investment guidelines to enable more exposure to alternative asset classes while strengthening risk management frameworks.
