President Bola Tinubu has pledged to introduce a minimum pension guarantee and expand healthcare support for retirees, assuring Nigerians that workers who served the country will not be abandoned after retirement.
The President made the commitment on Thursday at the National Pension Conference and Awards in Abuja, held at the Transcorp Hilton as part of the maiden National Pension Week 2026.
Represented by the Secretary to the Government of the Federation, George Akume, Tinubu described pension security as a national responsibility and promised measures to improve the welfare of retired workers.
“A pension is not a favour granted by Government. It is a wage earned, deferred and held in trust. It is a promise. And this Administration has resolved that the promise will be kept,” he said.
The proposed reforms include implementing the Minimum Pension Guarantee under the Pension Reform Act 2014 and expanding PenCare, a healthcare support programme designed to improve access to essential medical services for eligible retirees.
Akume said the administration was determined to fulfil the long-standing commitment to a minimum pension guarantee, which is intended to provide a safety net for eligible retirees whose retirement income is inadequate.
However, the minimum amount payable and the detailed implementation arrangements will depend on guidelines issued by the National Pension Commission, known as PenCom.
Tinubu also reaffirmed his administration’s commitment to the 758-billion-naira Federal Government Pension Bond, approved to address outstanding accrued pension rights and strengthen the Pension Protection Fund.
The President said the intervention represented an effort to fulfil obligations to former public servants who had waited for benefits earned during their years of service.
He declared that no Nigerian who had served the country should be forgotten in retirement.
On healthcare, the administration highlighted PenCare, a programme intended to help eligible low-income retirees access essential medical services. PenCom has begun rolling out the initiative, with an initial target of 30,000 retirees, supported by funding from the commission and participating pension fund operators.
The announcement comes amid concerns that the growth of Nigeria’s pension industry has not translated into adequate retirement income for many workers.
PenCom Director-General Omolola Oloworaran disclosed that pension assets increased from 20.79 trillion naira in July 2024 to 31.8 trillion naira in August 2026.
The increase of 11.01 trillion naira represents growth of approximately 53 per cent over the period.
Despite this expansion, Oloworaran warned that many private-sector employees were retiring with pensions below the national minimum wage.
She attributed part of the problem to employers calculating pension contributions on only a portion of workers’ earnings instead of their full applicable remuneration.
Under the statutory contribution structure cited at the conference, employers contribute 10 per cent and employees eight per cent, bringing the combined contribution to 18 per cent.
The PenCom chief urged employers to comply fully with pension contribution requirements and called on pension fund administrators to deliver sustainable investment returns that protect retirement savings against inflation.
She also disclosed that pension industry operators had committed to creating three million additional funded, active Retirement Savings Accounts within the next year, with the aim of extending coverage to workers currently outside formal pension arrangements.
Oloworaran announced that Tinubu would launch the Pension Security Initiative on November 10, incorporating PenCare and the minimum pension guarantee.
She further directed pension fund administrators and custodians to complete their recapitalisation by June 30, 2027.
The commission also highlighted improvements in some retirement benefits, including pension increases for certain federal retirees and Nigeria Social Insurance Trust Fund pensioners, alongside measures to accelerate the processing of retirement benefits.
Meanwhile, Tinubu warned pension fund administrators and custodians against exposing workers’ retirement savings to excessive investment risks in pursuit of higher returns or national development objectives.
He insisted that pension investments must prioritise contributors’ interests and comply with strict risk-management standards.
“National development must never come at the expense of pensioners. Every investment must stand on its own merits, pass rigorous tests of risk and return, and serve the best interests of contributors,” he said.
The President also called for stronger enforcement of pension regulations and urged employers to remit workers’ contributions fully and promptly.
He described the deduction of pension contributions without transferring the funds into workers’ Retirement Savings Accounts as a breach of trust.
The administration also wants pension coverage extended to traders, artisans, farmers, transport operators and other self-employed Nigerians through initiatives such as the Personal Pension Plan.
At the legislative level, Chairman of the House of Representatives Committee on Pensions, Jallo Mohammed, said the National Assembly was reviewing the Pension Reform Act 2014 and other pension-related legislation.
He said proposed amendments, including measures concerning intelligence and military pensions, were progressing through legislative consideration.
The lawmaker pledged continued oversight to strengthen compliance, improve pension administration and protect contributors’ savings.
Nigeria’s Contributory Pension Scheme was established under the Pension Reform Act 2004 and subsequently governed by the 2014 Act. It requires employers and employees in covered employment to contribute towards retirement savings managed by regulated pension operators.
Although the scheme was introduced to address weaknesses in previous pension arrangements, concerns remain over inadequate retirement income, delayed benefits and healthcare costs faced by some pensioners.
The proposed minimum pension guarantee and expanded healthcare support are therefore expected to be judged by their implementation, eligibility requirements, funding arrangements and actual impact on retirees.
Tinubu said the ultimate measure of success would not be the size of pension assets alone, but the financial security and dignity delivered to Nigerians after years of service.
