President Bola Tinubu has approved a N758bn Federal Government Pension Bond to settle outstanding accrued pension rights and reinforce the Pension Protection Fund. This move aims to improve retirement security and address longstanding obligations to Nigerian pensioners. The President made this announcement at the inaugural National Pension Week Leadership Summit held at the Transcorp Hilton, Abuja. He reaffirmed the Federal Government's commitment to protecting the retirement benefits of Nigerians who have contributed to national development.
The President, represented by the Secretary to the Government of the Federation, Senator George Akume, emphasized that pension payments are an obligation arising from workers' service rather than a discretionary benefit. Tinubu described the N758bn pension bond as a significant intervention to address outstanding pension liabilities inherited by his administration. This includes accrued rights owed to retirees who have waited for extended periods to receive their entitlements. The measure is intended to provide relief to affected pensioners and reinforce the government's responsibility to honour its obligations to former workers.
Tinubu also announced plans to implement the Minimum Pension Guarantee provided for under the Pension Reform Act 2014. This provision has remained unimplemented for more than 11 years after the legislation was enacted. The implementation is expected to strengthen the retirement protection framework and provide additional assurance for contributors, particularly those whose pension benefits may be inadequate to meet their basic needs. This move will ensure that pensioners receive a minimum level of benefits, providing them with greater financial stability.
In a further move to broaden retirement support, Tinubu announced the introduction of PenCare, a national programme aimed at improving access to essential healthcare for pensioners on low incomes. The initiative is designed to extend pension protection beyond savings and periodic benefit payments by addressing healthcare needs among vulnerable retirees. For whom medical expenses can place additional pressure on limited retirement income, PenCare will provide essential healthcare support, enhancing the overall well-being of retirees.
The President emphasized that an effective pension system is crucial not only for social protection but also for Nigeria's economic development. He noted that long-term domestic savings could support financial market growth and provide funding for productive investments. However, Tinubu warned employers in both the public and private sectors against deducting pension contributions from employees' salaries without remitting the money to the appropriate pension accounts. He described the failure to transfer deducted contributions as a breach of trust.
Tinubu charged the National Pension Commission to enforce the relevant laws and regulations impartially. He also urged Pension Fund Administrators and Pension Fund Custodians to strengthen their professional expertise, diversify investments responsibly, and reduce operating costs. The President stressed that pension investments must generate returns capable of protecting workers' savings against inflation, while maintaining the balance between capital preservation and sustainable growth. This will ensure that pension funds are managed efficiently and effectively.
The President called for an expansion of the Contributory Pension Scheme beyond formal employment to include traders, artisans, farmers, transport workers, and other self-employed Nigerians who remain outside conventional payroll arrangements. He urged state governments, organised labour, and other stakeholders to support efforts to increase participation, strengthen compliance, and accelerate the payment of retirement benefits. The goal is to bring more Nigerians into the pension system, particularly those whose livelihoods do not provide access to employer-sponsored retirement arrangements.
Key points
- President Tinubu approves N758bn pension bond to settle outstanding pension rights.
- The President plans to implement the Minimum Pension Guarantee under the Pension Reform Act 2014.
- Tinubu introduces PenCare, a national programme to improve access to essential healthcare for low-income pensioners.
