Governance
Tinubu Approves ₦758bn Pension Bond, Unveils PenCare for Low-Income Retirees 11 Years After Pension Reform Act,
President Bola Tinubu has announced plans to implement the Minimum Pension Guarantee provided for under the Pension Reform Act 2014, more than 11 years after the legislation was enacted, as part of efforts to strengthen retirement security and improve the welfare of Nigerian pensioners.
The President also unveiled PenCare, a national retiree wellbeing programme designed to provide low-income retirees with access to essential healthcare services.
Tinubu made the announcements on Thursday at the inaugural National Pension Week Leadership Summit, held at the Transcorp Hilton, Abuja. He was represented at the event by the Secretary to the Government of the Federation (SGF), Senator George Akume.
In an address titled “Pensions for All: Building a Secure Future Together,” the President said his administration was committed to restoring dignity, security and measurable value to the Contributory Pension Scheme. He stressed that pension obligations must be regarded as a national responsibility rather than a government favour.
According to him, pension represents an earned entitlement and a commitment that government must fulfil.
“A pension is not a favour granted by Government. It is a wage earned, deferred and held in trust. It is a promise. And this Administration has resolved that the promise will be kept,” he said.
Tinubu disclosed that his administration inherited outstanding pension obligations, including accrued rights that had remained unpaid for years, leaving many retirees waiting for benefits earned during their years of service.
To address the situation, he approved the N758 billion Federal Government Pension Bond to settle accrued pension rights and strengthen the Pension Protection Fund.
Representing the President, Akume described the intervention as an act of restitution to workers who had served the country but were denied timely access to their retirement entitlements.
“That was not an accounting exercise. It was an act of restitution to Nigerians who served their country and were made to wait for what they had earned,” he said.
The President’s announcement on the Minimum Pension Guarantee represents a significant policy development in the country’s pension administration, as the provision has remained unimplemented since the enactment of the Pension Reform Act in 2014.
“Since enactment, that promise has never been honoured. Under President Tinubu, it will be,” Akume declared.
The introduction of PenCare is also expected to expand the focus of pension administration beyond the accumulation and management of retirement savings to include the overall wellbeing of retirees, particularly those with limited financial resources.
Tinubu explained that a strong pension system was not only essential for social protection but also a strategic component of Nigeria’s economic transformation agenda under the Renewed Hope Agenda.
He noted that pension funds could help mobilise long-term domestic savings, deepen the country’s financial markets and support productive investments.
However, he emphasised that achieving sustainable retirement security required the collective commitment of government, regulators, employers, pension fund administrators and other stakeholders.
The President charged the National Pension Commission (PenCom) to remain firm, fair and forward-looking in discharging its regulatory responsibilities, particularly in enforcing compliance with pension laws without fear or favour.
He also urged public and private sector employers to ensure the full and timely remittance of pension contributions, warning that deductions from workers’ salaries without corresponding remittances amounted to a serious breach of trust.
“To deduct a worker’s contribution and fail to remit it is not an administrative lapse. It is a breach of trust,” he cautioned.
Tinubu further challenged Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs) to strengthen their professional expertise, diversify investments responsibly, reduce management costs and prioritise the retirement benefits ultimately received by contributors.
He warned that pension fund performance should not be measured solely by the volume of assets under management but by the actual value delivered to contributors upon retirement.
“Preservation without growth is a slow erosion. Retirement savings that fail to keep pace with inflation quietly betray the very people who saved them,” he said.
The President maintained that protecting pension assets against risks must go hand in hand with disciplined investment growth, particularly in an economy where inflation could erode the purchasing power of retirement savings.
He acknowledged the potential of pension funds to support national development through investments in infrastructure and productive enterprises but insisted that such investments must not undermine the financial security of contributors.
According to him, every pension investment must undergo rigorous risk and return assessments and be undertaken strictly in the best interests of contributors.
Tinubu also called for an aggressive expansion of pension coverage beyond the formal sector, noting that millions of Nigerians working as traders, artisans, farmers, transport operators and self-employed individuals deserved access to reliable retirement savings arrangements.
He specifically identified the Personal Pension Plan as an important instrument for extending pension coverage to workers outside the conventional employer-employee structure.
“Pensions for All must mean exactly that: all,” he declared.
He urged state governments, organised labour and other stakeholders to work with the Federal Government and PenCom to expand pension participation, improve compliance and strengthen confidence in the pension system.
The President said the National Pension Week Leadership Summit must produce concrete and measurable commitments rather than end with speeches and declarations.
He identified increased enrolment, faster payment of retirement benefits, improved investment performance, greater transparency and more dignified retirement outcomes as critical indicators for measuring progress in the sector.
“The true measure of our success will not be how much money the system holds. It will be how much security, and how much dignity, it delivers,” he said.
Reaffirming his administration’s commitment to pension reforms, Tinubu declared that no Nigerian who had served the country would be abandoned in retirement.
“Above all, no Nigerian who has served this nation will be forgotten in retirement. Nigeria will keep faith with those who kept faith with Nigeria,” he said.
At the summit, Akume was also conferred with an Award of Excellence in Pension Sector Leadership and Support in recognition of his contributions to the development of Nigeria’s pension sector.