President Bola Ahmed Tinubu has introduced three initiatives aimed at improving retirement security and access to healthcare for Nigerian pensioners, with 173,209 retirees identified as beneficiaries of a new minimum pension guarantee.
The initiatives, comprising the Presidential Pension Security Initiative, National Minimum Pension Guarantee Programme and PenCare healthcare scheme, were unveiled on Tuesday at the State House Conference Centre in Abuja.
Senate President Godswill Akpabio represented Tinubu at the launch, held under the theme, “Securing Every Nigerian”.
Speaking through Akpabio, the President described the programmes as the fulfilment of a 22-year-old commitment to Nigerian retirees, aimed at addressing outstanding pension liabilities and strengthening social protection.
He said the reforms would ensure that retirees had a guaranteed minimum income and access to essential medical services, particularly those on low incomes.
“A pension is more than a pay cheque. One illness at 68 years can swallow 40 years of savings and leave the children to carry the burden of what remains thereafter,” Tinubu said.
He added that the PenCare initiative would provide essential healthcare services to vulnerable pensioners without charge.
“A pension that cannot pay for medicine is not a pension; it is a receipt. So today, I also launch PenCare, funded by the pension industry. PenCare gives our low-income retirees access to essential healthcare without charge,” he said.
The President said the initiative would complement the minimum pension guarantee by ensuring that retirees had both a stable source of income and access to medical care.
Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, disclosed that the minimum monthly pension had been fixed at ₦52,500, with 173,209 retirees eligible under the programme.
She said the scheme was backed by a Pension Protection Fund exceeding ₦400 billion and fulfilled a commitment under the Pension Reform Act of 2004 to establish a minimum retirement income for eligible contributors.
According to Oloworaran, 34 per cent of the identified beneficiaries retired from the Federal Government, 12 per cent from state governments and 54 per cent from the private sector.
She explained that the minimum pension figure had been validated by an actuary and would be subject to periodic review.
On outstanding pension liabilities, the PenCom chief said the Tinubu administration inherited obligations exceeding ₦2 trillion but had facilitated the settlement of ₦1.07 trillion.
She added that 13 states had either cleared their inherited pension liabilities, had no outstanding legacy obligations or had settled at least 80 per cent of their arrears.
PenCare Healthcare Initiative
Oloworaran disclosed that the pension industry had committed more than ₦7 billion to PenCare, with insurance premiums already paid for nearly 30,000 low-income retirees.
She said the funded healthcare programme was designed to reduce the cost of medical treatment for vulnerable pensioners and prevent healthcare expenses from consuming their retirement savings.
According to her, the initiative would provide sustainable access to essential medical services for beneficiaries.
“Through PenCare, the pension industry has put more than ₦7 billion in place for the healthcare of our low-income retirees, and that is the balance in that account after they have paid for premiums for almost 30,000 Nigerians,” she said.
The PenCom director-general also announced plans to raise $750 million through an infrastructure bond in partnership with FSD Africa to channel pension funds into national infrastructure development.
She said the initial $250 million tranche would comprise $200 million from the pension industry and an expected $50 million from development partners.
Deployment of the funds is projected to begin before the end of the first half of 2027.
Oloworaran further disclosed plans to extend pension coverage to millions of Nigerians working in the informal sector, including traders, artisans, farmers and commercial transport operators.
She said the expansion would provide more workers with opportunities to participate in the pension system and secure their financial future after retirement.
Also speaking at the event, Chairman of Heirs Holdings and United Bank for Africa, Tony Elumelu, commended Tinubu for prioritising the welfare of retirees through the new pension and healthcare initiatives.
