The National Pension Commission (PenCom) has announced a significant increase in monthly pension payments under the Contributory Pension Scheme (CPS), raising payouts from ₦8.3 billion to ₦11.9 billion effective June 2025.
The development, unveiled during PenCom’s second-quarter press briefing in Lagos, is part of a new initiative dubbed “Pension Boost 1.0”, aimed at enhancing retirement benefits for over 233,000 retirees on the programmed withdrawal plan.
PenCom Director-General, Omolola Oloworaran, described the adjustment as a strategic response to increased returns on pension investments and a revised benefit calculation template. “This is more than an increment—it’s a transformative upgrade. Pension payments will now better reflect the performance of retirees’ Retirement Savings Accounts (RSAs),” she stated.
However, the adjustment applies only to retirees under the programmed withdrawal structure, excluding those on annuity plans, Oloworaran clarified.
She further revealed that the Federal Government has cleared pension arrears for retirees under Treasury-funded Ministries, Departments, and Agencies (MDAs) up to March 2025. This progress was made possible through a ₦750.8 billion bond approved by President Bola Tinubu to offset outstanding pension liabilities.
Reaffirming PenCom’s commitment to building a transparent and dependable pension system, Oloworaran warned employers and pension fund operators against delayed remittances and non-compliance. “The grace period is over—there will be consequences,” she warned.
With pension fund assets rising to ₦23.33 trillion in Q1 2025, the new payout structure represents a milestone in PenCom’s broader efforts to enhance retirement security and financial dignity for Nigeria’s aging population.
