Tinubu Orders PenCom to Implement Pension Increases

President Bola Tinubu has directed the National Pension Commission (PenCom) to commence the implementation of increases in pensions for retirees under the Contributory Pension Scheme (CPS), marking a significant policy step aimed at improving the welfare of senior citizens. The directive, announced on Thursday, is in line with the provisions of the Pension Reform Act 2014, which mandates periodic reviews of pensions to reflect prevailing economic realities.

According to the Presidency, the decision was taken after extensive consultations with relevant stakeholders, including the Ministry of Finance, PenCom, and representatives of pensioners. The move is designed to ensure that retirees receive payments that reflect the rising cost of living, particularly in the face of inflationary pressures and the removal of fuel subsidies, which have triggered higher prices for goods and services.

Presidential spokesperson Ajuri Ngelale, in a statement, said the President is committed to ensuring that Nigerian workers who have served the nation with dedication are not left vulnerable in their retirement years. He explained that the directive to PenCom aligns with Tinubu’s broader social protection agenda, which prioritises the well-being of vulnerable groups, including pensioners. “President Tinubu has approved the immediate implementation of pension increases to guarantee that our retirees enjoy a dignified standard of living. This is a demonstration of his administration’s commitment to fairness, compassion, and responsive governance,” the statement read.

The President also called on PenCom to ensure a smooth rollout of the increment, with clear communication to retirees on the modalities and timelines. The Commission has been instructed to work closely with Pension Fund Administrators (PFAs) to process and reflect the increases in the next cycle of pension payments. The directive covers both existing retirees and those who will retire in the coming months, provided they meet the eligibility criteria under the CPS.

Industry experts have hailed the move as a positive intervention that could help restore confidence in Nigeria’s pension system. They note that while the CPS has brought greater structure and transparency to pension administration since its introduction in 2004, concerns have persisted about whether retirees’ benefits are keeping pace with economic realities. With inflation currently at record highs and the cost of basic commodities surging, the adjustment is expected to provide much-needed relief to pensioners struggling to make ends meet.

PenCom, in its preliminary response to the directive, assured the public of its readiness to comply fully with the President’s order. The Commission stated that it has already developed a framework for periodic pension reviews in collaboration with PFAs, as stipulated in Section 82 of the Pension Reform Act. PenCom also confirmed that the adjustment will be implemented in a transparent manner to ensure all eligible retirees benefit without discrimination.

The development comes at a time when pension advocacy groups have been pressing the government for a review of retirement benefits to match inflation and rising living costs. Some groups have argued that without regular adjustments, the value of pensions erodes rapidly, leaving retirees unable to meet basic needs. This sentiment has been echoed by labour unions and civil society organisations, which have described the President’s action as timely and commendable.

Financial analysts say the policy could also stimulate the economy in a small but meaningful way, as increased pension payouts would translate into higher purchasing power among retirees. This, in turn, could boost demand for goods and services, particularly in the consumer goods sector. However, they caution that the long-term success of the policy will depend on sustained fiscal discipline and effective management of pension funds to ensure that higher payouts do not strain the system.

For many retirees, the announcement has already sparked optimism. Several pensioners interviewed in Lagos, Abuja, and Port Harcourt expressed hope that the increment will ease the financial pressures they have faced in recent years. Some, however, urged the government to ensure that the review process is regular rather than occasional, to avoid situations where retirees go years without adjustments.

President Tinubu’s directive also underscores his administration’s broader pledge to overhaul the social welfare system. In recent months, the government has rolled out various support measures, including wage awards for public sector workers, targeted cash transfers to vulnerable households, and initiatives aimed at improving access to healthcare for the elderly. The pension increment forms part of this multi-pronged approach to cushioning the economic impact of ongoing reforms.

In conclusion, the implementation of pension increases, once fully operational, is expected to set a new standard for how Nigeria treats its retired workforce under the contributory scheme. While challenges remain in ensuring timely and transparent disbursements, the President’s directive signals a renewed focus on the welfare of pensioners and could serve as a model for further social protection reforms. The coming months will be crucial in determining whether the policy translates into tangible improvements in the quality of life for retirees across the country.