Tinubu Promises Pension Reforms for Retirees

President Bola Tinubu has promised to bring in a long-awaited minimum pension guarantee and boost healthcare support for retirees. He said his government is committed to ensuring that Nigerians who served the country are not left behind after retirement.

Mr Tinubu made this promise on Thursday at the National Pension Conference and Awards at Transcorp Hilton, Abuja. This event is part of the first National Pension Week 2026.

Represented by the Secretary to the Government of the Federation, George Akume, the president mentioned that pension security is a national duty. His government plans to enhance the welfare of retirees.

“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.

Mr Tinubu stated that his government is working to tackle outstanding pension obligations and help retirees' welfare through efforts to strengthen the Contributory Pension Scheme.

These efforts include rolling out the Minimum Pension Guarantee based on the Pension Reform Act 2014 and expanding PenCare, a healthcare support program for eligible retirees.

“Since enactment, that promise has never been honoured. Under President Tinubu, it will be,” Mr Akume said, sharing the president’s promise to implement the minimum guarantee.

The president also stressed the commitment to the N758 billion Federal Government Pension Bond. This bond was approved to settle unpaid pension rights and support the Pension Protection Fund.

“That was not an accounting exercise. It was an act of restitution to Nigerians who served their country and were made to wait for what they had earned,” Mr Akume said on behalf of the president.

Mr Tinubu emphasized that pension security should be seen as a government duty, not just an optional benefit for retired workers.

“Above all, no Nigerian who has served this nation will be forgotten in retirement. Nigeria will keep faith with those who kept faith with Nigeria.”

The proposed Minimum Pension Guarantee aims to support eligible retirees under the Contributory Pension Scheme who do not have enough retirement income. While the Pension Reform Act 2014 includes this guarantee, the minimum payment amount and implementation details will depend on guidelines from the National Pension Commission (PenCom).

Mr Tinubu also pointed out PenCare, a healthcare support program designed to help low-income retirees access essential medical services. This initiative aims to provide support beyond pension payments by helping eligible retirees get healthcare.

PenCom has started to roll out PenCare, with the first phase focusing on 30,000 retirees. The program is funded by the commission and participating pension fund operators.

According to the president, this initiative shows a wider approach to retirement welfare. It looks at the pension system not just by how much contributors save but also by the security and dignity those savings provide in retirement.

He urged relevant institutions to ensure that these measures truly improve pensioners' lives.

The Director-General of PenCom, Omolola Oloworaran, said Nigeria’s pension assets grew from N20.79 trillion in July 2024 to N31.8 trillion in August 2026. This N11.01 trillion increase means about 53 percent growth over that time.

But she noted that the growth in pension assets has not led to adequate retirement income for many contributors, especially those in the private sector.

“Almost 70 percent of private sector employees earn below the national minimum wage in retirement. More than 55 percent of all retirees whose pensions fall below the minimum wage come from the private sector,” she said.

Ms Oloworaran linked this issue to employers who calculate pension contributions based on limited parts of workers’ earnings rather than their total pay.

She explained that the combined statutory pension contribution of 18 percent involves 10 percent from employers and eight percent from employees. She warned that low pensionable earnings could hurt retirement benefits.

“Our private sector workers are retiring into poverty. This must change,” she said.

The PenCom chief asked private employers to contribute to the Pension Protection Fund, along with the Federal Government and pension industry operators.

She also challenged pension fund administrators to achieve returns that exceed inflation, which continues to reduce the value of retirement savings.

“Beating inflation is not an aspiration. It is your job,” she said.

Ms Oloworaran revealed that the commission has secured promises from pension industry operators to set up three million extra funded, active Retirement Savings Accounts within the next year. This goal aims to cover workers currently left out of formal pension plans.

She also shared that President Tinubu would launch the Pension Security Initiative on 10 November. This initiative will include PenCare and the minimum pension guarantee.

The commission has also instructed pension fund administrators and custodians to finish their recapitalization by 30 June 2027.

“Every pension fund administrator and custodian must complete recapitalization by 30th June 2027. We are not changing our minds,” she said.

Highlighting recent improvements, Ms Oloworaran mentioned that some federal retirees received pension increases ranging from 67 to 120 percent. Some Nigeria Social Insurance Trust Fund pensioners saw increases over 1,000 percent.

She added that retired professors could now get pensions equal to their final salaries. Some retirement benefits are being processed in less than 48 hours.

The commission also announced an exit benefit scheme for retirees from treasury-funded federal ministries, departments, and agencies, with symbolic cheques presented at the event.

President Tinubu warned pension fund administrators and custodians not to put workers’ retirement savings at risk with careless investments. He insisted that the search for higher returns or national development should not jeopardize contributors’ financial safety.

He said pension assets must be managed with clarity, responsibility, and strict risk-management standards.

While pension savings could help infrastructure and economic growth, he said investment choices must prioritize the interests of the workers whose contributions make up the funds.

“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 warned that inflation is weakening the value of retirement savings. This makes it essential for pension operators to provide sustainable returns while preserving capital.

“Preservation without growth is a slow erosion. Retirement savings that fail to keep pace with inflation quietly betray the very people who saved them,” he said.

He urged pension fund administrators and custodians to improve their investment skills, responsibly diversify portfolios, cut operating costs, and increase accountability.

The president said that the pension industry’s success should be judged by the financial safety it offers retirees, not just by the amount of assets it manages.

He also called on PenCom to enforce pension rules firmly and fairly. He urged public and private employers to fully and promptly pay pension contributions.

He described failing to transfer workers’ pension contributions to their Retirement Savings Accounts as breaking trust.

The president also asked state governments, organized labor, and other stakeholders to broaden pension coverage for traders, artisans, farmers, transport workers, and other self-employed Nigerians.

He said the government would promote the Personal Pension Plan and new ways to make retirement savings easier for those not in regular jobs.

“Pensions for All must mean exactly that: all,” he said.

He urged stakeholders to ensure the summit leads to clear commitments, like more enrolments, quicker benefit payments, better investment results, and clearer reports of pension fund activities.

Meanwhile, Jallo Mohammed, the Chairman of the House of Representatives Committee on Pensions, said the National Assembly is reviewing the Pension Reform Act 2014 and other pension laws.

He said proposed changes, including those for military and intelligence pensions, are moving through legislative processes ahead of public hearings.

Mr Mohammed also mentioned ongoing talks with NNPC Pension Fund Limited about following PenCom rules after years of regulatory issues.

He promised continued legislative oversight to enhance pension management, boost regulatory compliance, and protect workers’ retirement savings.

“Our shared aim must be to build a pension industry that protects today’s workers’ savings and ensures better financial security and dignity for future retirees,” he said.

Nigeria’s Contributory Pension Scheme started under the Pension Reform Act 2004 and is now governed by the Pension Reform Act 2014. This system requires employers and employees in covered jobs to contribute to retirement savings, managed by pension fund operators under regulatory supervision.

The scheme was set up to fix problems with older pension systems, such as delays in payments and unfunded liabilities.

However, some retirees still struggle with low pension payments, delays in accessing accrued rights, and managing healthcare costs after leaving their jobs.

In October, PenCom reported that the Federal Government’s pension intervention has been used to clear debt from accrued pension liabilities dating back to 2007. The commission said 957,045 beneficiaries have been covered.

PenCom has also identified the Minimum Pension Guarantee and PenCare as ways to enhance the financial safety and welfare of retirees.

President Tinubu said the success of these reforms should be judged by their impact on pensioners’ lives.

“The true measure of our success will not be how much money the system holds. It will be how much security, and how much dignity, it delivers,” he said.