Retirement and terminal benefits payouts almost doubled year-on-year, reaching N789.69bn in the first three quarters of 2025, according to The PUNCH analysis of quarterly figures from the National Pension Commission.
According to PenCom’s data, total payouts for Q1, Q2, and Q3 stood at N286.35bn, N252.76bn, and N250.59bn, respectively, bringing the nine-month total to N789.69bn. This compares with N403.64bn paid out in the corresponding three quarters of 2024, indicating a sharp rise in benefit disbursements.
A closer look at the breakdown shows strong increases across major benefit categories. Lump sum payments, which are one-off payments to retirees who select the programmed withdrawal option, rose to N225.15bn over the three quarters, nearly double the N113.39bn recorded in the same period of 2024. Premium payments (annuity), which refer to amounts paid to insurance companies to provide guaranteed monthly pensions for retirees, also climbed significantly to N266.1bn, compared with N90.9bn a year earlier.
En bloc payments experienced one of the most pronounced jumps, rising to N77.65bn in 2025 from merely N7.6bn a year before. Mortgage equity contributions also saw significant growth: N121.35bn compared to N61.15bn during the corresponding period last year.
Death benefits fell to N49.12bn in the first nine months of 2025 from N82.22bn in 2024. Loss-of-job benefits, which enable contributors to withdraw 25 per cent of their RSA, dipped to N29.35bn from the previous year’s N33.43bn. Meanwhile, NSITF payments remained minimal, but voluntary contributions rose to N17.61bn from N13.89bn.
Overall, the figures point to a substantial expansion in retirement and terminal benefits payouts in 2025 compared with the previous year, driven largely by sharp increases in lump sum payments, premium benefits, en bloc payments, and mortgage-related equity contributions.
It is also instructive to highlight that in 2025, the Director-General of the National Pension Commission, Ms Omolola Oloworaran, revealed that over 233,000 retirees on the Programmed Withdrawal plan would benefit from the improvement in the monthly payout, which had increased to N11.9bn from N8.3bn.
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.
Speaking at the 2025 second-quarter press briefing held in Lagos, Oloworaran said, “Effective 1 June 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 Tinubu.”
Last year, PenCom also began the distribution of the N758bn bond approved by the Federal Government to clear outstanding pension liabilities, with over N600bn disbursed as of December.
Commenting on the retirement benefits payout for the third quarter of 2025, the Pension Fund Operators Association of Nigeria said it reflected the industry’s continued commitment to supporting retirees and RSA holders.
It stated, “The quarter saw significant payments under multiple benefit types, with programmed withdrawals and life annuities providing consistent financial support to retirees. Notably, death benefits recorded the highest total payout, underscoring the pension system’s role in providing security to families of deceased contributors. En bloc payments and loss-of-job benefits also formed an important part of the payouts, offering critical liquidity to retirees and individuals exiting the workforce unexpectedly. Meanwhile, pre-Act/NSITF disbursements and voluntary contributions, though smaller in total value, reached thousands of RSA holders, reflecting ongoing engagement and flexibility within the system.
“Another key highlight was the equity contribution for residential mortgages, which provided substantial financial assistance to RSA holders, enabling access to housing opportunities and long-term asset building. This demonstrates the pension framework’s broader role beyond retirement income, contributing to wealth creation and social welfare.”
In a post on its Instagram page where it analysed the third quarter 2025 reports, PenOP maintained that the “Q3 2025 payout figures illustrate robust operational execution by the pension system, ensuring timely disbursement of benefits across a wide spectrum of retirees and RSA holders. The diversity in benefit types and the scale of payments indicate both the maturity of the system and its responsiveness to the needs of its participants.”
