The National Pension Commission (PenCom) has introduced a series of major reforms aimed at enhancing Nigeria’s Contributory Pension Scheme (CPS), with a renewed focus on transparency, inclusiveness, and the overall well-being of retirees. The announcement came during a high-level Stakeholders’ Conference on the workings of the CPS, held in Abuja and attended by key figures from government agencies, labour unions, pension fund administrators, and industry experts.

Director-General of PenCom, Ms. Omolola Oloworaran, highlighted that Nigeria’s pension landscape has significantly evolved. The country has transitioned from a problematic legacy of unpaid retirement benefits to a more structured and transparent system under the CPS. Today, the scheme covers over 10 million Nigerians, including public sector workers, private employees, artisans, and even self-employed individuals under the Personal Pension Plan.

Nigeria’s pension fund has now grown to more than ₦25 trillion, playing a dual role in not only providing consistent pension payments to retirees but also funding national development projects. According to PenCom, over 844,000 retirees currently benefit from the scheme. Of these, 552,000 receive regular monthly pensions, while over 291,000 have accessed lump sum payments.

One of the key highlights of the reforms is the launch of Pension Boost 1.0, which increased monthly pension payouts for over 241,000 retirees under the Programmed Withdrawal scheme, raising total monthly payments from ₦12.1 billion to ₦14.8 billion. Furthermore, PenCom has streamlined the pension payment process, ensuring that retirees now receive their entitlements in line with monthly salary disbursements from the Federal Ministry of Finance — effectively ending long delays in accessing retirement funds.

Additional reforms include the reintroduction of gratuity payments for civil servants, the approval of a ₦758 billion Federal Government bond to clear pension arrears, and a new free health insurance plan aimed at supporting low-income retirees. PenCom has also introduced five new regulations under its Pension Revolution 2.0 initiative, covering areas such as investment guidelines, whistle-blower protections, and regulations for personal pension agents.

Ms. Oloworaran emphasized that these reforms go beyond policy changes; they reflect a shared national vision where every Nigerian worker retires with dignity and enjoys financial peace of mind in their later years.

Also speaking at the conference, Mr. Ekpo Nta, Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), provided a historical overview of Nigeria’s pension system, tracing its roots from the 1951 Pension Ordinance to the Defined Benefit Scheme (DBS), and eventually to the 2004 Pension Reform Act that established the CPS. He noted that pensions are a cornerstone of national productivity and economic stability.

Mr. Nta reaffirmed the NSIWC’s commitment to reviewing pensions regularly, as required by the 1999 Constitution, and emphasized the need for stronger governance and smarter investment strategies to ensure the long-term success of the pension system.

With these new reforms, both PenCom and NSIWC aim to reinforce public trust in Nigeria’s pension framework and provide better support for millions of current and future retirees.