The National Pension Commission (PenCom) has launched a new initiative, Pension Boost 1.0, under the Contributory Pension Scheme (CPS), aimed at increasing monthly pension payments to retirees to N12 billion.
According to the pension industry regulator, the initiative, which became effective in June, will see total monthly pension payouts increase from N8.3 billion to N11.9 billion.
The Director-General of PenCom, Ms Omolola Oloworaran, disclosed this during the commission’s second-quarter media briefing in Lagos on Thursday that the increase would directly benefit over 233,000 retirees, depending on their Retirement Savings Account (RSA) balances.
“We are introducing Pension Boost 1.0. This is the news every retiree has been waiting for.
“Effective this month, total monthly pension payments under the CPS will rise from N8.3 billion to N11.9 billion. This will directly benefit over 233,000 retirees, depending on their pension account balances,” she said.
The DG described the initiative as a strategic leap made possible by strong RSA investments and bold economic reforms under the administration of President Bola Tinubu.
“This is not a token gesture. It’s a result of sound investment returns and a visionary framework for pension enhancement.
“It is driven by our newly modified standard pension enhancement template, a transparent structure that allows upward pension adjustments as investment returns increase. This is just the beginning,” she stated.
The PenCom boss also revealed that the backlog of pension arrears had been nearly cleared, with all retirees up to March 2025 now having received their accrued pension rights and monthly entitlements.
She commended President Bola Tinubu for approving a N758 billion bond to settle outstanding pension liabilities, describing it as a landmark move demonstrating the government’s dedication to the welfare of Nigerian retirees.
“Thanks to the decisive leadership of President Tinubu, we’ve seen stable and consistent releases of funds for accrued rights since November last year. The end of pension arrears is very, very near.
“President Tinubu’s approval of the N758 billion bond to clear pension liabilities is further proof that this administration is rewriting the retirement narrative in Nigeria,” she stressed.
Ms Oloworaran said the agency was focused on building a transparent, inclusive, and resilient pension system.
“We are restoring faith in retirement. We are rewarding work with dignity,” the DG added.
She also issued a warning to defaulting employers and complacent pension operators.
“To employers with late pension remittances, your grace period is over. To operators who remain complacent, there will be consequences. And to every Nigerian worker, we see you, we hear you, and we will protect your future.
“Let the pension industry take note: this is a new era, and we are not going to turn back. We will continue to move forward,” Ms Oloworaran said.