Tinubu Guarantees N52,500 Minimum Monthly Pension for Retirees - THISDAYLIVE

■ Launches free healthcare for low-income retirees■ Oloworaran reveals N1.07 trillion legacy pension liabilities cleared by states

President Bola Tinubu has ended a 22-year delay in the implementation of the Minimum Pension Guarantee (MPG), declaring a monthly pension of N52,500 for eligible retirees under the Contributory Pension Scheme (CPS).The intervention is aimed at cushioning pension poverty and strengthening social protection.The president also unveiled the PenCare Health Access Card, designed to provide free access to essential healthcare for low-income retirees.Speaking at the launch of the Pesidential Pension Security Initiatives, including the PenCare Health Access Card and MPG in Abuja, the president described the implementation of the minimum pension guarantee as the fulfilment of a statutory obligation that successive administrations had failed to honour for more than two decades.He said Sections 71 of the Pension Reform Act 2004, as well as Sections 82 and 84 of the 2014 Act, had provided for a guaranteed minimum pension but remained largely unimplemented.According to him, four successive administrations failed to translate the legislative provision into an effective social security protection mechanism, leaving retirees exposed to inadequate pensions and mounting healthcare expenses.He said, “Twenty-two years, four presidents have gone before my administration. The laws were not implemented. Not one Naira paid under that guarantee. Not one retiree given a floor.“By the authority vested in me as President and Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced with effect from today.”Represented by Senate President,Senator Godswill Akpabio, Tinubu said the initiative would be administered by PenCom under the Pension Reform Act, stressing that no contributor under the CPS should be allowed to fall below the guaranteed minimum.“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. Not because this government is generous, but because it is their right,” he stated.The president also challenged future administrations not to reverse the policy, describing it as a fundamental commitment between the Nigerian state and its workforce.“Raise it, but never remove the floor,” he warned.The minimum pension guarantee is expected to provide a significant lifeline for retirees whose accumulated contributions and pension benefits are insufficient to sustain basic living expenses.Tinubu, further linked the clearance of pension arrears to the removal of the petrol subsidy, insisting that the additional revenues accruing to states were being translated into tangible benefits for citizens.Citing a World Bank report published in October, he said state revenues increased by approximately 93 per cent in real terms between 2023 and 2025, while the proportion of state budgets devoted to capital expenditure rose from 46 per cent to 61 per cent.He said state governments had collectively spent over N1 trillion clearing outstanding pension liabilities.The president maintained that the subsidy reform, despite the initial economic hardship, had expanded the fiscal resources available to federal and state governments to address long-standing obligations.He also highlighted the federal government’s N758 billion bond issuance to settle outstanding pension liabilities, alongside a N32,000 monthly consequential adjustment for seven out of every 10 federal pensioners earning below the national minimum wage.Tinubu further cited improvements in the pensions of legacy beneficiaries of the Nigeria Social Insurance Trust Fund (NSITF), saying some retirees previously receiving N18,000 monthly now collect N206,000.He said the administration had also delivered pension enhancements under the CPS, describing the new minimum guarantee as another layer of protection for retirees.

The president said the introduction of PenCare was equally important because inadequate healthcare access remained one of the biggest threats to the financial security of retirees.He observed that medical expenses could quickly wipe out decades of retirement savings, leaving elderly Nigerians and their families struggling to meet basic healthcare needs.“A pension that cannot pay for medicine is not a pension. It is a receipt,” he said.Tinubu said PenCare would provide low-income retirees with access to essential healthcare without charge, adding that the first health access cards would be issued in the coming months.The initiative, which will initially benefit 173,209 retirees, is backed by a Pension Protection Fund with more than N400 billion, according to the Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran.Tinubu, maintained that his administration’s reforms were aimed at rebuilding the country’s economic foundations and correcting longstanding structural weaknesses.He defended the removal of petrol subsidy and unification of the foreign exchange market, arguing that the decisions had freed resources for infrastructure, education, credit expansion and social protection.He also cited the establishment of the Nigeria Education Loan Fund, the National Credit Guarantee Company and the Nigerian Consumer Credit Corporation as interventions designed to expand economic opportunities.The president insisted that the new pension initiatives represented a shift from political promises to enforceable social protection obligations.However, Oloworaran, who disclosed the operational details of the scheme, said the N52,500 monthly minimum was actuarially validated, funded and subject to periodic review.She said 173,209 retirees had been identified as eligible beneficiaries, comprising 34 per cent from the federal public service, 12 per cent from state governments and 54 per cent from the private sector.The PenCom boss noted that over 65 per cent of private-sector retirees earned below the proposed minimum, underscoring the importance of the intervention beyond the public service.She urged private-sector employers to contribute to the Pension Protection Fund, warning that the sustainability of the scheme required broader participation.She said, “The federal government has put its money into this fund. The pension industry has put its money into this fund as well. The offering basket for the Pension Protection Fund is now on the private sector’s roll. Please do not let it pass empty.”Oloworaran added that the N400 billion-plus fund provided the financial backing required to commence payments to eligible beneficiaries following the presidential declaration.

States clear N1.07 trillion pension arrears

Oloworaran disclosed that state governments had collectively cleared N1.07 trillion out of over N2 trillion in inherited pension liabilities, representing substantial progress in addressing decades of unpaid retirement obligations.She said the development was particularly significant for retirees who had been waiting since the 1990s and early 2000s for their entitlements.According to her, 13 states are now effectively in the clear, either because they had no outstanding legacy pension obligations or had settled their liabilities or paid more than 80 per cent of the outstanding amounts.The PenCom DG attributed the progress to increased fiscal capacity resulting from the federal government’s economic reforms, which had improved allocations to state governments.She disclosed that the pension industry had committed more than N7 billion to the healthcare initiative, with almost 30,000 retirees already covered through the payment of premiums.She described the arrangement as a funded and sustainable healthcare intervention designed to address the twin vulnerabilities of inadequate retirement income and rising medical expenses.Illustrating the circumstances of the beneficiaries, she narrated the experience of a retired primary school teacher who served for 33 years but currently receives less than N20,000 monthly.According to her, the woman had been forced to abandon a doctor’s prescription because purchasing the prescribed medication would leave her without sufficient money to feed.Oloworaran said the new minimum pension and PenCare would ensure that retirees no longer had to choose between buying medicines and meeting their basic needs.

Oloworaran said the commission was preparing to extend pension coverage to millions of Nigerians operating outside the formal economy.She said PenCom had unlocked the use of accredited pension agents to take the scheme to markets, motor parks and other informal-sector communities.She added that Tinubu had directed the commission to develop sustainable incentives capable of attracting informal-sector workers, including market women, artisans, commercial riders and farmers.The initiative, she said, would expand pension participation beyond the formal workforce and provide retirement security for millions of Nigerians who currently have no structured pension arrangements.Oloworaran also disclosed that the pension industry was repositioning itself as a major source of long-term capital for Nigeria’s infrastructure development.She said PenCom and FSD Africa had signed a Memorandum of Understanding to develop a $750 million infrastructure bond, with an initial $250 million already committed by the pension industry and development partners.Of the initial commitment, she said pension funds would provide $200 million, while development partners were expected to contribute $50 million.She expressed optimism that deployment of the funds would commence before the end of the first half of 2027.The initiative is expected to deepen the participation of pension funds in financing infrastructure, while creating opportunities for improved long-term returns for contributors and retirees.Oloworaran argued that pension assets should not merely accumulate as financial reserves but should also support productive investments capable of generating employment, economic growth and sustainable returns.“When the workers’ servants build the nation, the nation’s good pays the workers’ pension,” she said.

Also, in his goodwill remarks, Chairman of Heirs Holdings, Mr. Tony Elumelu, said the cou try’s economic prosperity must translate into improved living conditions and stronger social protection for citizens, warning that wealth creation alone cannot be the true measure of national progress without adequate protection for retirees and other vulnerable groups.Elumelu, who spoke on behalf of private sector stakeholders at the launch of the Presidential Pension Security Initiatives, including the PenCare healthcare initiative and the National Minimum Pension Guarantee (MPG), in Abuja, said the two programmes represented critical investments in human dignity and financial security.He said that the success of economic policies should be measured not only by the wealth they generate but also by their capacity to improve people’s lives, particularly those who have spent their productive years contributing to national development.According to him, the initiatives address two fundamental challenges confronting retirees: access to healthcare and security of income.“These are not simply pension reforms; they are investments in human dignity,” he said.The businessman commended President Bola Tinubu for recognising the importance of protecting vulnerable citizens, noting that national prosperity must extend beyond economic growth to the welfare of people who have served the country.He said Nigeria was making an important statement about the kind of society it intended to build by introducing measures to ensure that workers could retire with dignity, security and peace of mind.Elumelu also praised the President for appointing a relatively young professional, Oloworaran, as Director General of PenCom, describing the appointment as evidence of confidence in young leadership.He particularly commended PenCom and the Nigerian pension industry for driving the initiatives, saying their introduction demonstrated what responsible institutions could accomplish when they prioritised citizens’ welfare.“As an entrepreneur, an investor and an advocate of African capitalism, I have always believed that economic prosperity must be inclusive. Growth must translate into improved lives, and our institutions must work for everyone, including those who have completed years of active service,” he said.Elumelu further called for stronger collaboration between the government and the private sector to deepen financial inclusion, strengthen institutions and build a more secure future for Nigerians.He assured that the private sector was prepared to support policies and programmes capable of advancing these objectives.He said, “The private sector stands ready to support policies and initiatives that strengthen our institutions, deepen financial inclusion and build a more secure future for all our citizens,” he added.He further congratulated Tinubu, PenCom’s leadership under Oloworaran and other stakeholders for the initiative, describing it as another step towards building a country where no citizen was left behind.

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