How one pension lawsuit challenged Nigeria’s 25% retirement savings rule and changed what retirees can demand

For years, Nigerian retirees approaching retirement faced a difficult choice: accept the pension structure offered by administrators or challenge a system they believed limited their access to savings built over decades.

A landmark court case involving retired worker Ladi Ogunlana and Pension Alliance Limited (PAL) has now reshaped that conversation, challenging how Pension Fund Administrators (PFAs) calculate lump-sum payments and strengthening retirees’ ability to question pension decisions.

At the centre of the legal battle was lawyer D.D. Duru, whose firm represented Ogunlana in a case that questioned the widespread interpretation that retirees could only access 25 per cent of their Retirement Savings Account (RSA) as a lump sum.

Duru told Business Insider Africa that the judgment did not declare the 25 per cent rule illegal but challenged the blanket application of the provision without considering individual circumstances.

“Before Ladi Ogunlana v Pension Alliance Limited, Pension Fund Administrators relied on Section 7(2) of the Pension Reform Act 2014 to limit lump sum payments to 25%,” he said.