The Federal government of Nigeria has introduced Pencare, a program aimed at providing easier access to healthcare facilities for retirees. The program, developed by the National Pension Commission (PenCom), was launched by President Bola Tinubu, represented by Senate President Godswill Akpabio. The Pencare health access card was issued to the first set of beneficiaries, marking a significant milestone in Nigeria's social security history.
According to President Tinubu, Pencare will give retirees, particularly those on low-income, greater access to essential healthcare without charge. Akpabio noted that for the first time in Nigerian history, retirees will receive a guaranteed income and a card that opens the door to a hospital. He emphasized that this is a fulfillment of social security promises made 60 years ago, with action being taken now.
The Pencare program is part of the ongoing reforms initiated by President Tinubu since May 29, 2023. Akpabio commended the President for taking bold decisions, including the removal of petroleum subsidies. He highlighted that the administration has unified exchange rates, shut down fraudulent practices, and rewritten tax laws that had existed since 1939.
As part of the reforms, the lowest income earners in Nigeria now pay no taxes on food, medicine, and education. The administration has also established the National Credit Guarantee Company, providing access to credit facilities for Nigerians without collateral. Over 64 billion naira was unlocked for more than 174,000 borrowers, and over 350,000 Nigerians have taken over 53 billion naira in credit.
Akpabio noted that Section 71 of the Pension Reform Act promised every contributor a guaranteed minimum pension in 2004, which was reiterated in sections 82 and 84 of the 2014 amended Act. However, the laws were not implemented for 22 years, with no retiree receiving a guaranteed floor. Akpabio stated that this promise ends with the launch of Pencare.
With the authority vested in him, President Tinubu declared the minimum pension guarantee scheme commenced, to be administered by the National Pension Commission under the Pension Reform Act. The Pencare program, funded by the pension industry, aims to provide retirees with access to essential healthcare, addressing the burden of medical expenses on retirees and their families.
The launch of Pencare and the minimum pension guarantee scheme marks a significant milestone in Nigeria's social security history. The programs demonstrate the administration's commitment to providing a safety net for retirees and promoting economic growth. Key initiatives under the programs include providing free healthcare access to low-income retirees, guaranteeing a minimum pension, and unlocking credit facilities for Nigerians.
Key points
- The Pencare program provides free access to essential healthcare for retirees, especially low-income earners.
- The program guarantees a minimum pension for retirees, addressing a 60-year-old promise.
- The administration has also established the National Credit Guarantee Company, providing access to credit facilities for Nigerians without collateral.
