Nigeria Retirees Get N32K Pension Increase Monthly Boost

Nigeria Retirees to receive a Pension Increase

In a much-needed victory for Nigeria's retired federal workers, thousands of pensioners under the Contributory Pension Scheme (CPS) are about to receive a substantial financial boost: an extra N32,000 in their monthly pensions. This increase is part of a wider effort to settle longstanding pension debts and ensure retirees benefit from recent economic reforms.

At the core of this development is a substantial N758 billion bond, approved by President Bola Ahmed Tinubu, designed to eliminate long-standing pension liabilities that have burdened the system for years. Officials stress that this increase is not merely a handout; it directly responds to the National Minimum Wage Amendment Act of 2024, which raised the baseline wage to N70,000. By applying these adjustments to pensions, the government is establishing a safety net that ensures a minimum pension level, regardless of individual savings.

This move particularly helps retirees from key sectors such as education, health, security, and the Armed Forces, who often face financial difficulties after their service. On August 6, 2025, President Tinubu issued a directive for the "prompt implementation of long-overdue pension increases and a minimum pension guarantee," highlighting his administration's commitment to protecting vulnerable groups amidst rising living costs.

According to the National Pension Commission (PenCom), the bond's proceeds, expected to be released soon with National Assembly approval, will be allocated strategically:

• N253 billion for accrued rights of workers hired before the CPS launch in 2004 or those nearing retirement at the time.

• N387.5 billion to address pension increments pending since 2007.

• N107 billion for the Pension Protection Fund, designed to top up pensions for lower earners and prevent anyone from falling below the minimum.

PenCom Director-General Omolola Oloworaran described this as a "long-overdue step" to rebuild trust in the CPS, which has been damaged by nearly twenty years of unresolved payments. "This intervention restores confidence and ensures our retirees can live with dignity," she said.

The announcement builds on last year's (2024) adjustments by the National Salaries, Incomes, and Wages Commission (NSIWC), which confirmed the N32,000 increase as part of the new minimum wage framework. For many pensioners, this could mean the difference between struggling to make ends meet and affording essentials like healthcare, food, and family support, especially amid Nigeria's inflation pressures.

While implementation details are still evolving, this policy signals a positive move toward inclusive economic growth. Retirees who have dedicated their careers to public service deserve this recognition, and it could motivate similar reforms at the state level. If you're a federal retiree or know one, stay tuned for updates from PenCom on how to access these benefits. In the meantime, this serves as a reminder that advocacy and policy changes can truly make a difference in securing a brighter retirement for all.