Retired Federal Workers to Receive Additional ₦32,000 Monthly as Pension Reform Takes Effect
Retired federal workers in Nigeria are set to earn an additional ₦32,000 every month, following the Federal Government’s approval of a new pension support scheme aimed at easing the financial burden on senior citizens.
The initiative, confirmed by the National Salaries, Incomes, and Wages Commission (NSIWC) and backed by the National Pension Commission (PenCom), is part of ongoing efforts to harmonise pensions and ensure retirees are not left behind in the wake of rising inflation and the new minimum wage law.
According to government officials, a ₦758 billion bond has been approved to cover the cost of the increase. Out of this amount, about ₦253 billion will be used to clear accrued rights owed to retirees, ₦387.5 billion will cover pension increases dating back to 2007, while ₦107 billion has been earmarked to establish a Pension Protection Fund for vulnerable retirees.
With the new arrangement, every retiree under the Contributory Pension Scheme (CPS) will be guaranteed a baseline pension of ₦32,000 per month, regardless of their individual savings balance. This comes after a similar adjustment for those under the Defined Benefit Scheme (DBS), who began receiving the increment in late 2024, retroactive to July of that year.
Leaders of the Nigeria Union of Pensioners (NUP) have welcomed the development, describing it as a long-overdue measure to bring relief to retired workers struggling with high living costs. However, they cautioned that prompt and transparent implementation will be key to restoring confidence in Nigeria’s pension system, noting that many retirees are still awaiting payment from earlier approvals.
The move is widely seen as a major step in addressing pension disparities, as well as a response to concerns raised by labour unions during the recent negotiations on wage increases. By setting a minimum threshold, the government hopes to ensure that no federal retiree receives a pension below subsistence level.
As the policy rolls out, authorities say they are working closely with PTAD and PenCom to resolve any outstanding issues and ensure that beneficiaries begin to enjoy the new payments without delay.
