President Bola Tinubu has approved a minimum monthly pension of N52,500 for 173,209 eligible retirees under the Contributory Pension Scheme, bringing an end to more than two decades of delay in implementing the provision.
The President also launched a healthcare initiative known as the Pension Industry Healthcare Plan for Retirees (PenCare), designed to provide free access to essential medical services for pensioners with limited financial resources.
Tinubu, represented by Senate President Godswill Akpabio, announced the two initiatives on Tuesday at the Presidential Pension Security Initiatives ceremony held at the State House Banquet Hall, Abuja.
At the event, the President formally declared the commencement of the Minimum Pension Guarantee Scheme, describing it as a major step towards improving the financial security of retired workers.
He said the initiative was backed by the Pension Reform Act of 2004 and maintained in the 2014 amendment but had not been implemented by previous administrations.
According to him, the scheme would ensure that eligible retirees under the contributory arrangement do not receive pensions below the approved minimum threshold.
Tinubu called on subsequent administrations to sustain the policy and build on its provisions rather than withdraw the benefit.
On the healthcare component, the President said PenCare was introduced to ease the financial burden of medical treatment on vulnerable pensioners, many of whom struggle to meet healthcare costs from their retirement savings.
He added that beneficiaries would begin receiving healthcare access cards in the coming months.
The President further disclosed that his administration had issued a N758bn bond to clear outstanding pension obligations and approved a N32,000 monthly consequential adjustment for affected federal pensioners.
He also said state governments had collectively paid more than N1tn towards settling pension liabilities.
Tinubu attributed the improved capacity of states to meet their financial obligations partly to the removal of the fuel subsidy, citing a World Bank report which indicated that state revenues grew by approximately 93 per cent in real terms between 2023 and 2025.
He added that the proportion of state budgets allocated to capital projects increased from 46 per cent to 61 per cent within the same period.
The President also highlighted other financial inclusion measures, disclosing that government-supported credit programmes had facilitated more than N64bn in loans to 174,000 beneficiaries, while about 350,000 Nigerians had accessed consumer credit worth approximately N53bn.
Earlier, the Director-General of the National Pension Commission, Omolola Oloworaran, confirmed that the minimum pension threshold had been set at N52,500 monthly.
She said 173,209 retirees had been identified as eligible beneficiaries, with federal pensioners accounting for 34 per cent, state retirees 12 per cent and private-sector pensioners 54 per cent.
Oloworaran explained that the approved amount was determined through actuarial assessment and would be reviewed periodically to reflect prevailing circumstances.
She further disclosed that the Pension Protection Fund had more than N400bn available to support the implementation of the guarantee.
According to her, over 65 per cent of retirees in the private sector currently receive monthly pThe PenCom director-general also revealed that state governments inherited pension liabilities exceeding N2tn, out of which N1.07tn had so far been settled.
On the healthcare initiative, she said the pension industry had committed more than N7bn to PenCare, following the payment of insurance premiums covering nearly 30,000 retirees.
She also announced plans to extend pension coverage to workers in the informal sector, including traders, farmers and artisans, who are largely outside the formal pension system.
Oloworaran disclosed that the pension industry had committed $750m to an infrastructure investment platform, with an additional $50m expected from development partners. Initial deployment of the funds is expected in the first half of 2027.
Also speaking, the Chairman of the House of Representatives Committee on Pensions, Hussaini Jallo, described the initiatives as significant interventions to address income insecurity and healthcare challenges among retired Nigerians.
He assured that the National Assembly would continue to support policies aimed at improving pension administration, strengthening compliance and extending coverage to workers in the informal sector.
Similarly, Chairman of Heirs Holdings, Tony Elumelu, praised the Federal Government for prioritising the welfare of retirees, describing the initiatives as an investment in the dignity and well-being of Nigerians who had completed their years of service.
He pledged the private sector's support for partnerships that would promote retirement security and financial inclusion.
