President Bola Tinubu has announced the commencement of a ₦52,500 monthly minimum pension guarantee for 173,209 eligible retirees under Nigeria’s Contributory Pension Scheme.

The initiative ends a 22-year delay in implementing the minimum pension provision contained in the Pension Reform Act.

The President also launched the Pension Industry Healthcare Plan for Retirees, known as PenCare, which is designed to provide free essential medical services to low-income pensioners.

Tinubu, who was represented by Senate President Godswill Akpabio, announced the initiatives on Tuesday during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall in Abuja.

Declaring the minimum pension guarantee operational, the President said the programme would ensure that eligible retirees would no longer receive monthly pensions below the approved threshold.

He explained that the guarantee was first provided for under the Pension Reform Act of 2004 and retained in the 2014 legislation but had remained unimplemented by successive administrations.

Tinubu urged future governments to sustain and improve the initiative rather than discontinue it, stressing the importance of protecting the financial security of retired workers.

On the healthcare programme, he said PenCare would shield vulnerable pensioners from medical expenses that could significantly reduce their retirement savings.

He added that beneficiaries would begin receiving healthcare access cards in the coming months.

The President also disclosed that his administration had issued a ₦758 billion bond to address outstanding pension liabilities and approved a ₦32,000 monthly consequential adjustment for affected federal pensioners.

He further stated that state governments had collectively spent more than ₦1 trillion settling outstanding pension obligations.

According to him, increased revenues following the removal of fuel subsidy had improved the financial capacity of states to meet their responsibilities.

Citing a World Bank report, Tinubu said state revenues increased by approximately 93 per cent in real terms between 2023 and 2025, while the proportion of state budgets allocated to capital projects rose from 46 per cent to 61 per cent.

In her opening remarks, the Director-General of the National Pension Commission, Omolola Oloworaran, announced that the minimum monthly pension had been fixed at ₦52,500.

She disclosed that 173,209 retirees qualified for the guarantee, comprising 34 per cent from the Federal Government, 12 per cent from state employment and 54 per cent from the private sector.

Oloworaran explained that the approved amount had undergone actuarial assessment and would be reviewed periodically.

She added that more than ₦400 billion was available in the Pension Protection Fund to support the implementation of the guarantee.

The PenCom chief also revealed that over 65 per cent of private-sector retirees currently received pensions below the newly approved minimum.

She disclosed that state governments had inherited more than ₦2 trillion in pension liabilities, with approximately ₦1.07 trillion already settled.

On the healthcare initiative, Oloworaran said the pension industry had committed more than ₦7 billion to PenCare, including insurance premiums covering nearly 30,000 retirees.

She further announced plans to extend pension coverage to workers in the informal sector, including traders, artisans and farmers.

According to her, the pension industry had also committed $750 million to an infrastructure investment platform, with an additional $50 million expected from development partners. Initial deployment is targeted for the first half of 2027.

In his remarks, the Chairman of the House of Representatives Committee on Pensions, Hussaini Jallo, described the initiatives as important measures towards addressing income insecurity and healthcare challenges facing retired workers.

He pledged the National Assembly’s support for improved pension administration, stronger compliance and the expansion of coverage, particularly among informal-sector workers.

Also speaking, the Chairman of Heirs Holdings, Tony Elumelu, commended the initiatives, describing them as investments in the welfare and dignity of Nigerians who had completed their years of service.

He pledged private-sector support for partnerships aimed at improving retirement security and financial inclusion.