PenCom directs Federal Self-Funded Agencies to review pension rates for eligible retirees

Nike Popoola

The National Pension Commission (PenCom) has instructed all Federal Government Self-Funded Agencies to review and implement pension increases for eligible retirees in accordance with Section 173(3) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, and the Pension Reform Act (PRA) 2014.

In a circular obtained by Dailyeconomy today dated December 8, 2025, and signed by Usman Musa, Director of the Contribution and Bond Redemption Department at PenCom, the commission highlighted that retirees of Federal Government Treasury-funded Ministries, Departments, and Agencies (MDAs) have been benefiting from periodic pension increments.

It urged self-funded agencies to extend similar provisions to their eligible retirees.

The circular clarified that Section 173(3) of the Constitution mandates that pensions of federal public servants must be reviewed every five years or in line with Federal Civil Service salary reviews. The PRA 2014 also guarantees retirees the right to pension reviews.

PenCom instructed agencies whose salary structures are included in the National Salaries, Incomes and Wages Commission (NSIWC) circulars to apply the relevant pension increases. Agencies not referenced in NSIWC circulars are advised to liaise with the commission to determine applicable adjustments for their retirees.

The directive attached copies of previous circulars, including:
A 15% pension increase (2010),
A 33% pension increase (2014),
Consequential adjustments in 2019,
20% and 28% increases in 2024,
A ₦32,000 per month adjustment in 2024,
And earlier reviews from 2012.

PenCom urged strict compliance to ensure that all retirees benefit appropriately from their pension entitlements.