Tinubu Ends 22-Year Delay, Introduces N52,500 Minimum Pension

President Bola Ahmed Tinubu has ended a 22-year delay in the implementation of Nigeria’s statutory Minimum Pension Guarantee Scheme, approving a minimum monthly pension of N52,500 for more than 170,000 eligible retirees under the Contributory Pension Scheme (CPS).

The President also launched PenCare, a free healthcare initiative for low-income retirees, as part of efforts to strengthen retirement security and improve the welfare of Nigerians who have completed their years of active service.

Tinubu announced the interventions on Tuesday in Abuja at the launch of the Presidential Pension Security Initiatives, declaring that the Minimum Pension Guarantee Scheme would take immediate effect.

Represented by Senate President Godswill Akpabio, the President described the implementation of the scheme as the fulfilment of a statutory obligation that had remained unfulfilled since the enactment of the Pension Reform Act in 2004.

He recalled that Section 71 of the 2004 Act provided for a guaranteed minimum pension, while Sections 82 and 84 of the 2014 amendment reinforced the provision and established a funding framework for its implementation.

Tinubu expressed disappointment that four successive presidential administrations had failed to activate the guarantee, leaving thousands of retirees vulnerable to financial hardship despite the legal provisions.

“Not one naira paid under that guarantee. Not one retiree given a floor. Not one government that stopped to ask what happens to those pensioners when their hospital bills arrive at home,” he lamented.

Declaring the scheme operational, Tinubu said, “Today, I dare say that lie ends here. 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, to be administered by the National Pension Commission under the Pension Reform Act.”

He stressed that the minimum pension was not a charitable intervention but a statutory entitlement owed to Nigerian workers who contributed to the country’s development.

“From this day, a floor within the Nigerian retirement system: 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 declared.

Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, said the scheme would benefit more than 170,000 eligible retirees currently receiving less than N52,500 monthly.

She explained that the intervention would cover both public and private sector retirees under the Contributory Pension Scheme, dismissing suggestions that it was exclusively for former federal government employees.

“We are targeting over 170,000. Every eligible retiree earning below N52,500 will be brought up to N52,500. So, everybody, there’s no discrimination. If you are within the CPS, you will get it,” she assured.

Oloworaran disclosed that 54 per cent of retirees whose monthly pensions fell below the threshold were from the private sector, adding that more than 65 per cent of private-sector retirees currently earned less than N52,500.

She, however, clarified that state governments would be required to contribute to the Pension Protection Fund before their retirees could benefit from the minimum pension guarantee.

The PenCom chief also announced that the commission had commenced the implementation of PenCare, a free healthcare initiative targeting 30,000 low-income retirees.

According to her, approximately 25,000 retirees had already been captured in the programme, with the figure expected to rise to 30,000.

She said some beneficiaries had received healthcare access cards during the pilot phase, adding that retirees who had yet to receive their cards could approach their Pension Fund Administrators (PFAs).

“It has been rolled out, and Nigerians can now enter into a hospital and enjoy healthcare,” she said.

Tinubu, in his remarks, described healthcare expenses as one of the biggest challenges facing retirees, noting that medical bills often consumed their retirement savings and placed additional burdens on their families.

“A pension is more than a pay cheque. Ask any Nigerian what finished their father’s pension. It was not food. It was not rent. It was the hospital bill.

“One illness at 68 years can swallow 40 years of service and leave the children to carry the burden thereafter.

“A pension that cannot pay for medicine is not a pension. It is a receipt,” he said.

The President said the combination of a guaranteed minimum retirement income and access to healthcare represented an important step towards building a comprehensive social security system.

“For the first time in Nigerian history, the Nigerian retiree holds two things at once: an income that cannot fall below the floor and a card that opens the door of a hospital. That is social security,” he declared.

Tinubu also disclosed that his administration had raised a N458 billion bond to address outstanding pension arrears, insisting that the government had moved beyond promises to actual payments.

“We issued a bond of N458 billion, and we paid them. I said we did not promise; we paid them,” he stated.

He further highlighted the approval of a N32,000 monthly consequential pension adjustment for affected federal retirees, saying the intervention had improved the benefits of pensioners previously receiving amounts below the national minimum wage.

The President also cited improvements in the monthly retirement benefits of former Nigeria Airways workers, noting that some beneficiaries who previously received as little as N80,000 now collected up to N206,000.

Tinubu attributed the government’s ability to meet these obligations partly to the economic reforms introduced by his administration, particularly the removal of petrol subsidy and the unification of foreign exchange rates.

He argued that the reforms had enabled the government to mobilise resources for infrastructure, education, credit expansion and the settlement of longstanding pension liabilities.

The President warned against attempts to reverse the reforms, maintaining that doing so would undermine improvements in government revenues, infrastructure investment and social protection.

He challenged opposition politicians who had previously occupied public office to explain why they failed to implement the statutory minimum pension guarantee during their tenures.

“Do not listen to what they promise you. Promises are free. Look at what they did when they were in power. Which retiree did you guarantee? Which pensioner did you insure? And which floor did you erect at the start?” he asked.

Tinubu also cited increased revenues to state governments, saying World Bank figures showed that state revenues rose by approximately 93 per cent in real terms between 2023 and 2025, while the proportion of state budgets allocated to capital expenditure increased from 46 to 61 per cent.

He said the increased allocations had provided state governments with greater capacity to address inherited pension liabilities and invest in infrastructure.

Meanwhile, Oloworaran announced that PenCom was strengthening enforcement measures against employers who failed to remit pension contributions deducted from workers’ salaries.

She said the commission was collaborating with enforcement agencies, including the Economic and Financial Crimes Commission (EFCC), to ensure compliance.

“We want to make life difficult for employers who are not enforcing pensions. My dream and vision for this country is that every single employer has to face pensions, just as it happens in the West,” she said.

She warned employers against withholding workers’ contributions, while stressing that pension obligations should also extend to households employing full-time domestic workers.

On outstanding pension liabilities at the state level, Oloworaran disclosed that state governments had collectively pledged N1.07 trillion towards addressing legacy pension obligations since Tinubu assumed office.

She clarified that the liabilities remained the responsibility of the respective state governments and not the Federal Government.

The PenCom chief also described reports that some state pensioners received as little as N5,000 monthly as unacceptable, promising to investigate the claims.

Chairman of United Bank for Africa (UBA) Group, Tony Elumelu, commended the pension industry for funding PenCare, describing the initiative as an example of responsible institutional partnership aimed at improving citizens’ welfare.

He said economic growth must translate into better living conditions for Nigerians, including those who have completed their years of active service.

“Growth must translate into improved lives, and our institutions must work for all Nigerians, including those who have completed their years of active service,” Elumelu said.

He added, “A society that protects its elderly is good to its young, and a nation that honours its workers inspires tomorrow’s and today’s workforce.”

Chairman of the House of Representatives Committee on Pensions, Hussaini Jalo, who represented the committee at the event, described the launch as a landmark intervention in the country’s efforts to build a sustainable retirement security system.

He commended Tinubu for approving what he described as a N758 billion pension bond intervention to address outstanding liabilities, including funding for the Pension Protection Fund.

Similarly, Chairman of the Senate Committee on Establishment and Public Service, Senator Cyril Fasuyi, commended the Federal Government and PenCom for implementing the minimum pension guarantee provision of the Pension Reform Act.

He assured that the Senate would continue to support pension reforms while ensuring the long-term sustainability of the Contributory Pension Scheme.

Fasuyi also urged state governments that have yet to establish sustainable pension arrangements to intensify efforts to secure the retirement future of their workers.