FG Raises Minimum Pension to ₦32,000, Approves Backdated Payment from September 2025
- The Nigerian government has announced pension increases for Nigerian retirees, effective September 2025
- The increase includes 10.6% and 12.95% for the eligible minimum pension of N32,000
- Also, the federal government backdated the payment to September 2025, releasing N20 billion for area payments
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Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy
The Federal Government has announced a significant increase in pension payments for retirees under the Defined Benefit Scheme (DBS), raising the minimum pension to ₦32,000.
The adjustment, which includes increments of 10.6% and 12.95% for eligible pensioners, will be backdated to September 2025.
Source: Twitter
The Pension Transitional Arrangement Directorate (PTAD) disclosed the development in a statement, describing it as a landmark reform that addresses long-standing demands by pensioners for improved welfare and financial security.
₦20 billion released for immediate implementation
According to PTAD, the new pension structure was made possible by the partial release of ₦20.188 billion from the ₦45 billion emergency funding earlier approved by the Federal Government.
The Directorate emphasised that the increase aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, who approved the emergency intervention to uplift pensioners’ living standards and modernise DBS pension administration.
Appreciation for key stakeholders
PTAD expressed gratitude to critical stakeholders who played roles in ensuring the release of funds.
The agency acknowledged the support of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Industry, Trade and Investment, Doris Uzoka-Anite; Chief of Staff to the President, Femi Gbajabiamila; FIRS Chairman, Zacch Adedeji; Accountant-General of the Federation, Oluwatoyin Madein; as well as the Senate and House Committees on Pensions and Public Service.
“These timely interventions were instrumental in ensuring today’s historic achievement,” PTAD stated.
Pension unions commended for cooperation
The Directorate also praised pension unions, including the Nigeria Union of Pensioners (NUP) and the Federal Parastatals and Private Sector Pensioners Association of Nigeria (FEPPPAN), for their patience and constructive engagement during the process.
PTAD noted that dialogue with these unions helped smooth the negotiations and ensured that the pension review was carried out without disruptions.
More funds expected for full implementation
While the first tranche of funding has been released, PTAD assured retirees that efforts are ongoing to secure the remaining balance of the approved ₦45 billion.
The Directorate reaffirmed its commitment to ensuring full implementation of all pension obligations under the new arrangement.
“PTAD further assures all DBS pensioners and stakeholders that it will continue to collaborate with relevant authorities to secure the outstanding approved funds and to deliver on all reforms designed to strengthen pension administration,” the statement added.
A Boost for Retirees Amid Rising Costs
The pension increase comes at a critical time, as many retirees struggle with the rising cost of living and inflationary pressures.
For thousands of pensioners who have long clamoured for a review, the approval offers renewed hope of better welfare and dignity in retirement.
Source: Facebook
With payments backdated to September 2025, eligible retirees are expected to begin receiving the revised pensions and arrears in the coming months.
Another 27,701 Nigerian workers switch PFAs
Legit.ng earlier reported that in 2021, the National Pension Commission (PenCom) introduced an annual transfer window, allowing pension contributors to switch their Pension Fund Administrator (PFA) if they desire.
This allows the Retirement savings account (RSA) holders to change PFAs if they find another that offers better terms and services.
A recent report has shown that 27,701 Retirement Savings Account (RSA) holders have taken advantage of the 2025 transfer window to dump their PFAs for other options.
Source: Legit.ng
