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The short answer
Section 173(3) of the 1999 Constitution provides that pensions are reviewed every five years or together with any Federal Civil Service salary review, whichever is earlier, as PenCom's circular of 8 December 2025 restates. The rule protects retirees of the public service; PenCom applies it to eligible federal public-service retirees under the contributory scheme through section 15(4) of the Pension Reform Act 2014, while private-sector RSA pensions depend on the RSA balance.
What the Constitution says
Section 173 of the 1999 Constitution protects the pension rights of people who retired from the public service of the Federation. Subsection (3), as PenCom's circular PENCOM/TECH/CBRD/HCBRD/2025/37 of 8 December 2025 sets it out, provides that pensions shall be reviewed every five years or together with any Federal Civil Service salary reviews, whichever is earlier.
Two points follow from the wording. The review is a duty, not a discretion. And the trigger is whichever comes first: if federal civil service salaries are reviewed after two years, pensions are reviewed then too, without waiting for the fifth year.
How it reaches retirees under the contributory scheme
Under the older defined-benefit arrangements that the CPS replaced, a review meant a percentage rise in a pension paid by government. Under the Contributory Pension Scheme, pensions are paid from each retiree's RSA. Section 15(4) of the PRA 2014, as PenCom's circular puts it, guarantees the right of retirees of the Public Service of the Federation to pension review.
The December 2025 circular was addressed to all Federal Government self-funded agencies about their eligible retirees under the CPS. It told agencies whose salary structures appear in the National Salaries, Incomes and Wages Commission's pension circulars to implement the increases, and told agencies not listed to consult the Commission.
Past increases referred to
The circular's attachments are listed by title. As at the circular's date they referred to:
| Attachment title refers to | Year shown |
|---|---|
| 15% pension increase | 2010 |
| 33% pension increase | 2014 |
| Consequential adjustment following the 2019 salary review | 2021 |
| 20% and 28% pension increase | 2024 |
| ₦32,000 per month consequential adjustment | 2024 |
We could read the attachment titles but not the attached schedules, so we cannot say which retirees each applied to or from which date. Your agency or PFA can confirm what applies to you.
What it means for different retirees
| You retired from | Does the five-year review apply? | Who to ask |
|---|---|---|
| Federal public service, on the CPS | Yes, through PRA 2014 s.15(4) as PenCom applies it | Your PFA and your former agency |
| Federal public service, on the old defined-benefit scheme | The constitutional rule covers public-service pensions | The body that pays your pension; see pre-2004 pensioners |
| A state or local government | Check your state's pension law and board | Your state pension board |
| The private sector, on an RSA | No constitutional review; your pension depends on your RSA balance | Your PFA |
Private-sector RSA retirees
If you retired from a private company, section 173 does not create a right to a five-year increase. Your monthly pension under programmed withdrawal is worked out from your balance using PenCom's template, which uses a mortality table, an assumed return and fees, according to PenCom's December 2024 guidance note. Because your balance keeps earning returns, ask your PFA whether and when your programmed withdrawal can be recomputed.
How an increase works out: example
Example only. A federal retiree on the CPS receives ₦120,000 a month by programmed withdrawal. If an approved review gives a 20% increase, the new pension is ₦144,000 a month, a rise of ₦24,000. Over 12 months that is ₦288,000 more. Where the increase is applied from a past date, the arrears are the monthly rise times the months owed: 8 months of arrears at ₦24,000 is ₦192,000.
Review, increase and guarantee are different things
- Review
- The constitutional duty to look at pension levels every five years or with a civil service salary review.
- Increase
- The outcome of a review, set out in a salary commission circular and applied by the paying agency or PFA.
- Minimum guaranteed pension
- A separate arrangement backed by the Pension Protection Fund, which PwC's summary of the PRA 2014 says exists to guarantee a minimum benefit to contributors.
A retiree can benefit from one without the others. A review that produces no increase still satisfies the duty to review, and qualifying for a minimum pension is decided under its own rules.
Records to keep
- Your retirement letter and last payslip, which show the grade and step that circulars refer to.
- Every PFA letter that states your monthly pension.
- Bank statements showing pension credits, so arrears can be counted month by month.
- Copies of any letters you send asking about a review, with dates.
What to check first
- Whether you retired from the federal public service, a state, or the private sector.
- Whether your former agency is named in the relevant salary commission circular.
- Your PFA's letter showing your current monthly pension and any review applied.
- Arrears: the date from which an increase applies and the months paid.
- If you think a review has not been applied, write to your PFA and agency first, then PenCom; see complaining to PenCom.
Related: programmed withdrawal or annuity and the Pension Protection Fund.
Where Pryme fits
When a pension increase or arrears arrive, a Pryme Naira Savings Box can keep the arrears apart from monthly spending, and the Personal Assistant can remind you of bills due before pension day.
Questions people ask
Is pension increased every five years in Nigeria?
For public-service retirees, section 173(3) of the Constitution requires review every five years or with any Federal Civil Service salary review, whichever is earlier, as PenCom's December 2025 circular restates.
Does the five-year pension review apply to private sector retirees?
No constitutional review applies to private-sector RSA pensions; they depend on the RSA balance. Ask your PFA about recomputation.
What did PenCom's December 2025 circular say?
It told federal self-funded agencies to implement pension increases for eligible CPS retirees, citing section 173(3) and PRA 2014 s.15(4).
Who pays pension increases for retirees under the CPS?
For federal self-funded agencies, the circular directed the agencies to implement the increases; ask your former agency and PFA how yours is paid.
Sources
- PenCom circular PENCOM/TECH/CBRD/HCBRD/2025/37: Review of pension rates (8 Dec 2025) · accessed Oct 2026
- PenCom, Guidance Note on Revised Programmed Withdrawal Template, Version 2 (Dec 2024) · accessed Oct 2026
- PwC Nigeria, Tax Bites: Pension Reform Act 2014 (July 2014) · accessed Oct 2026
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