A high-level committee set up by President Bola Ahmed Tinubu has submitted a comprehensive report recommending significant reforms to Nigeria’s pension system, including constitutional amendments, a revised pension calculation method, and improved welfare provisions for retirees.
Starreporters earlier reported that the committee, inaugurated on 17 April 2025, was tasked with examining the necessity of pension increases, assessing relevant legislative frameworks, proposing amendments, and devising strategies to enhance the welfare of pensioners nationwide.
Correspondence obtained a copy of the report, which provided critical insights into both the Defined Benefits Scheme (DBS) and the Contributory Pension Scheme (CPS). The committee noted that both schemes face challenges that leave many retired civil servants vulnerable amid rising inflation and economic pressures.
The committee, chaired by Mr Samuel Agun and comprising six other members, thanked the president for the opportunity to serve the country and confirmed it had met the one-week deadline to submit its report.
According to the report, retirees under the DBS are constitutionally entitled to pension reviews every five years or whenever federal salaries are adjusted, whichever comes first.
While the government implemented reviews in January and July 2024, which introduced a 20–28% increase and a flat N32,000 addition, respectively, the committee observed that a flat-rate increment fails to reflect differences in grade level and length of service. It recommended that future increases be structured, inflation-linked, and based on grade level.
Additionally, it proposed a constitutional amendment to reduce the pension review cycle from five years to three, aligning it with the new wage review cycle agreed between the government and labour unions.
A major concern raised in the report was the disparity in benefits received by DBS retirees, particularly those who left service before 1 October 2003. Many such pensioners reportedly receive only half the benefits enjoyed by their counterparts who retired later, despite having the same grade and years of service. The committee said this contradicts the government’s harmonisation policy and a 2021 circular from the National Salaries, Income and Wages Commission. It urged the National Assembly to compel the Pension Transitional Arrangement Directorate (PTAD) to fully implement the harmonised pension structure without further delay.
On the CPS, introduced in 2004 and revised in 2014, the committee found that many retirees have yet to receive the computed pension increases and accumulated arrears due to them. It called for legislative intervention to ensure prompt payment. Furthermore, it stressed that employees who served before the 2004 reforms should receive proportionate entitlements for those earlier years, to be paid directly into their Retirement Savings Accounts by the government.
The committee also called for a review of the 2014 Pension Reform Act, noting that economic changes such as subsidy removal, increased utility tariffs, and currency devaluation have reduced the real value of pensions. It recommended that the government increase its contributions to the pension fund to offset these impacts.
In terms of welfare, the report proposed automatic enrolment of all pensioners—regardless of scheme—into a special National Health Insurance Scheme to guarantee free treatment in all federal hospitals. It also suggested transport rebates on government-run transit systems to further ease the burden on retirees.
While acknowledging that its membership did not fully represent all pensioner groups, the committee urged broader collaboration with bodies such as the Nigeria Union of Pensioners and the Association of Retired Directors of the Federal Civil Service. It also advised careful coordination, given ongoing litigation, and recommended presenting a united front to the National Assembly.
Looking to the future, the committee identified several areas requiring long-term strategic action. These include regular institutional reviews of pension policy, enhanced governance and transparency in pension fund management, and measures to insulate pensioners from economic shocks. It also emphasised the need for direct consultation with pensioners on issues affecting their wellbeing.