Monthly pension payments to retirees under the Contributory Pension Scheme (CPS) in Nigeria have increased to N14.83 billion, up from N12.15 billion. This development benefits over 241,000 retirees nationwide. The director-general of the National Pension Commission (PenCom), Ms Omolola Oloworaran, announced this at the 2026 Media Conference in Lagos. The increase is attributed to recent pension adjustments aimed at cushioning retirees against the rising cost of living.
The pension adjustments were implemented to ensure that retirees' benefits retain their value. According to Oloworaran, the adjustment has improved the monthly take-home of over 241,000 retirees from N12.15 billion to N14.83 billion. The Commission is working to sustain the purchasing power of retirees through its new Minimum Pension Guarantee. This guarantee will set a minimum threshold below which no CPS retiree will earn, providing a safety net for retirees.
In addition to the monthly pension rise, Oloworaran announced two major welfare boosts for retirees. The federal government has introduced a 100 per cent exit benefit for employees of Treasury-funded Ministries, Departments and Agencies (MDAs). Effective January 1, 2026, eligible workers receive an additional lump sum equal to 100 per cent of their annual emolument upon retirement. This move aims to improve the financial well-being of retirees.
Under the 100 per cent exit benefit scheme, 175 retirees have already received about N1.1 billion. Furthermore, PenCom is launching the PenCare Retiree Health Programme, which will provide free healthcare to low-income retirees. The pilot phase will cover 30,000 beneficiaries, offering them access to essential healthcare services. This programme is expected to significantly improve the quality of life for low-income retirees.
Oloworaran also revealed that the federal government has cleared all inherited pension liabilities dating back to 2007 through a N758 billion intervention bond. This development brings to an end nearly two decades of arrears, providing relief to retirees who had been waiting for their benefits. The clearing of these liabilities demonstrates the government's commitment to addressing pension-related issues.
To improve service delivery, PenCom has reduced the time for approving retirement benefits from up to 21 months to 48 hours. Oloworaran attributed this improvement to streamlined processes and enhanced efficiency within the Commission. She urged federal workers due for retirement and MDAs yet to complete verification to do so before the December 2026 deadline. The government has already credited accrued rights up to December 2029.
As of July 2026, Nigeria's pension assets stand at N31.48 trillion, up from N20.79 trillion in July 2024. The significant growth in pension assets is attributed to the addition of 938,229 new contributors within the period. The increase in pension assets and the number of contributors reflects the growing importance of the pension scheme in ensuring the financial security of retirees.
Key points
- The pension payments have risen to N14.83 billion monthly for 241,000 retirees under the Contributory Pension Scheme.
- The federal government has cleared all inherited pension liabilities dating back to 2007 through a N758 billion intervention bond.
- PenCom has reduced the time for approving retirement benefits from up to 21 months to 48 hours.
