President Bola Tinubu has activated a ₦52,500 monthly minimum pension guarantee for 173,209 eligible retirees under the Contributory Pension Scheme (CPS), alongside a new healthcare initiative for low-income pensioners.
The two measures were announced on Tuesday, November 10, during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall in Abuja. Tinubu was represented at the event by Senate President Godswill Akpabio.
The Minimum Pension Guarantee Scheme is intended to ensure that eligible CPS retirees whose monthly pensions fall below ₦52,500 receive an increase to the new threshold. Its activation fulfils a provision of the Pension Reform Act that had remained largely unimplemented for 22 years.
PenCom Sets ₦52,500 Monthly Pension Floor
Declaring the scheme operational, Tinubu said the guarantee would provide a minimum income level for contributors under the contributory pension system.
“From this day, there is a floor beneath the Nigerian retiree. No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below,” he said.
The President urged future administrations to maintain the policy and improve its value when necessary, warning against reversing the provision.
“Raise it. But never remove the floor,” he said.
Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, announced that the minimum pension had been fixed at ₦52,500 monthly. She said 173,209 retirees were eligible, comprising 34 per cent from federal service, 12 per cent from state employment and 54 per cent from the private sector.
Oloworaran said the amount had undergone actuarial assessment and would be reviewed periodically. More than ₦400 billion, she added, was available in the Pension Protection Fund to finance the guarantee.
She also disclosed that more than 65 per cent of private-sector retirees currently received pensions below the new threshold.
However, PenCom later clarified that state governments must contribute to the Pension Protection Fund before their retirees can qualify for the guarantee. The commission said it was working out the arrangements for state participation.
PenCare to Provide Free Healthcare for Low-Income Retirees
Tinubu also inaugurated the Pension Industry Healthcare Plan for Retirees, known as PenCare, to provide low-income pensioners with access to essential medical services without charge.
He said the programme was designed to prevent medical expenses from consuming the limited pension income of vulnerable retirees. Beneficiaries are expected to access healthcare through designated facilities using PenCare cards.
Oloworaran said the pension industry had committed more than ₦7 billion to the healthcare initiative, with insurance premiums already paid to cover nearly 30,000 retirees.
The scheme addresses a challenge faced by older Nigerians who often have to choose between buying prescribed medicines and meeting basic household expenses. The Bureau Journal has previously reported on a free medical outreach targeting 1,500 patients in Kebbi State, another intervention aimed at improving access to treatment for people who struggle to afford healthcare.
The PenCare initiative also comes amid wider efforts to strengthen Nigeria’s healthcare system, including the establishment of the National Health Technology and Data Analytics Office approved by Tinubu.
₦758bn Pension Bond and State Liabilities
The President also cited the ₦758 billion Federal Government pension bond approved to address outstanding pension obligations, alongside a ₦32,000 monthly consequential adjustment for affected federal pensioners.
He said state governments had spent more than ₦1 trillion settling pension obligations, attributing their improved capacity to meet those commitments partly to the removal of the petrol subsidy.
Oloworaran separately disclosed that states had inherited more than ₦2 trillion in legacy pension liabilities, of which ₦1.07 trillion had been settled.
State-level payment of retirement entitlements has remained an important issue in labour relations. The Bureau Journal has reported on the NLC’s push for improved workers’ earnings and the Kebbi State Government’s reported payments towards gratuities, death benefits and other retirement obligations.
Tinubu Cites Higher State Revenues and Credit Access
Defending the economic reforms introduced by his administration, Tinubu cited a World Bank report indicating that state revenues increased by about 93 per cent in real terms between 2023 and 2025.
He also said the proportion of state budgets allocated to capital projects rose from 46 per cent to 61 per cent over the same period.
The President further disclosed that government-backed credit initiatives had unlocked more than ₦64 billion for 174,000 borrowers, while over 350,000 Nigerians had accessed approximately ₦53 billion in consumer credit.
The administration has also introduced other forms of support for vulnerable households. The Bureau Journal has reported on the separate Federal Government ₦50,000 monthly NERSI cash-support programme. Unlike that household intervention, the new pension guarantee is specifically for eligible retirees under the Contributory Pension Scheme.
PenCom Targets Informal-Sector Workers
Oloworaran said PenCom would expand pension coverage beyond formal employment to include traders, artisans, farmers and other workers in the informal economy.
The commission plans to use accredited pension agents to reach more people and encourage participation in the contributory system.
She said the expansion was necessary to bring more Nigerians into a structured retirement savings arrangement and reduce the number of workers who reach old age without a reliable source of income.
Pension Industry Plans Infrastructure Investment
Oloworaran also highlighted plans by the pension industry to mobilise long-term savings for infrastructure development through an investment platform being developed with support from FSD Africa.
FSD Africa said the proposed fund has a long-term target of US$750 million. Its initial capital mobilisation target is US$350 million, with the first close expected in 2027. At its full target size, the platform aims to attract approximately US$600 million from Nigerian pension funds and at least US$150 million from development finance institutions.
The initiative has attracted interest from 19 Nigerian pension funds and is expected to support investments in energy, transport and digital infrastructure.
National Assembly and Private Sector Back Initiatives
Chairman of the House of Representatives Committee on Pensions, Hussaini Jallo, described the minimum pension guarantee and PenCare as important steps towards addressing income insecurity and healthcare challenges among retirees.
He pledged the National Assembly’s support for stronger pension governance, improved compliance and wider coverage, particularly among informal-sector workers.
Chairman of Heirs Holdings, Tony Elumelu, also commended the initiatives, describing them as investments in the dignity and welfare of Nigerians who had completed their working lives.
“These are not simply pension reforms. They are investments in human dignity,” Elumelu said.
He pledged continued private-sector support for partnerships that would strengthen retirement security and financial inclusion.
The success of the new guarantee will depend on sustained funding, effective implementation and participation by relevant stakeholders, particularly state governments and employers. For the 173,209 retirees identified by PenCom, the immediate test will be whether the new minimum translates into reliable monthly payments and lasting protection against income insecurity.
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