The National Pension Commission (PENCOM) has put forward new proposals aimed at improving retirement outcomes for Nigerian Police officers working under the contributory pension scheme, in a bid to address long-running complaints that police retirees receive too little under the system. The commission said the plan is designed to deliver a durable response to persistent agitation by police pensioners and personnel who have pushed for an exit from the contributory framework, arguing that the pensions being paid do not adequately reflect their earnings.
Under the structure PENCOM has outlined, retired police officers would receive a monthly pension equal to 100% of their final salary for the rest of their lives—an arrangement police staff and retirees have repeatedly demanded. The proposal also includes gratuity payments set at 200% of annual emoluments, a change the commission expects to materially raise the value of retirement benefits for officers when they leave active service.
Alongside the benefits for retirees, the commission expects the Federal Government’s contributions for serving police officers to rise from 10% to 20% each month, while employee contributions would remain at 8%. PENCOM said the combination of a last-salary-linked monthly pension and improved gratuity is intended to strengthen financial security after retirement, lift morale among officers still in service, and improve the size of Retirement Savings Account (RSA) balances over time.
PENCOM added that the proposals are also expected to enhance pension payouts and support the long-term sustainability of the pension system. If the plan is approved by President Bola Tinubu, the commission said the police-focused augmentation would reflect the government’s view of the police’s central role in maintaining national security and public order, while also prioritising dignity and stability for officers after they retire.
The commission’s announcement comes as organised labour has argued that an enhanced contributory pension arrangement is more sustainable and transparent than the older Defined Benefits Scheme, while also reducing the uncertainties linked to a complete departure from the contributory system. Labour advocates have maintained that strengthening the existing pension structure and drawing on the institutional experience of NPF Pensions Limited would better protect the long-term welfare and financial security of both serving and retired police personnel.
Police pensioners, however, have continued to protest the contributory pension scheme, saying that the monthly contributions required from employers and workers into Retirement Savings Accounts managed by Pension Fund Administrators (PFAs) have deteriorated their welfare. They have pointed to outcomes they describe as inconsistent and insufficient, with some retirees reporting monthly payments in the range of N30,000 to N80,000, while others say lump-sum retirement benefits are far too low to meet their needs.
Much of the anger among police pensioners has centred on what they see as unequal treatment across security agencies. They argue that the military, the Department of State Services (DSS), and certain intelligence services were exempted from the contributory pension scheme and shifted back to arrangements they consider more favourable, while the Nigeria Police Force remained within the contributory system.
In response to pension arrears and related hardships, President Tinubu—through the National Assembly—had approved a Federal Government bond worth N758 billion to clear pension backlog and arrears for retirees, including police officers, in 2025. That initiative, the commission noted, made life more manageable for Nigerian retirees by addressing overdue pension arrears dating back to 2012 and by improving monthly pension payments.
Even with those measures, pension advocates say the government should not scrap the contributory pension scheme. Instead, they argue authorities should increase police welfare, revisit how pension entitlements are calculated, and introduce supplementary retirement benefits to improve the overall outcomes for officers at the end of their careers.
