Tinubu launches N52,500 minimum pension for 173,209 retirees

Politics Spice Special Features Education Sex & Relationship Interview Columns Opinion Advertise with us Tinubu launches N52,500 minimum pension for 173,209 retirees Business & Economy November 11, 2026 12:18 am President Bola Tinubu. Photo: State House

President Bola Tinubu on Tuesday launched a N52,500 monthly minimum pension guarantee for 173,209 eligible retirees under the Contributory Pension Scheme, ending a 22-year delay in implementing the provision of the Pension Reform Act.

The President also inaugurated the Pension Industry Healthcare Plan for Retirees, known as PenCare, to provide free essential healthcare services to low-income pensioners.

Tinubu, who was represented by Senate President Godswill Akpabio, announced the initiatives during the Presidential Pension Security Initiatives ceremony at the State House Banquet Hall, Abuja.

Declaring the minimum pension guarantee operational, he said, “By the authority vested in me as President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced.”

The President explained that the guarantee, first provided for under the Pension Reform Act of 2004 and retained in the 2014 legislation, had remained unimplemented despite successive administrations.

“From this day, there is a floor beneath the Nigerian retiree. No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below,” he said.

Tinubu urged future administrations to maintain the guarantee, declaring, “Raise it. But never remove the floor.”

On healthcare, he said the PenCare initiative would protect vulnerable retirees from medical expenses capable of exhausting their pension savings.

“PenCare gives our low-income retirees access to essential health care without charge,” he said, adding that beneficiaries would begin receiving healthcare access cards in the coming months.

The President also disclosed that his administration had issued a N758bn bond to address longstanding pension arrears and approved a N32,000 monthly consequential adjustment for affected federal pensioners.

He said states had spent over N1tn settling pension obligations, attributing their improved financial capacity partly to subsidy removal.

Citing a World Bank report, Tinubu said states’ revenues increased by about 93 per cent in real terms between 2023 and 2025, while the share of their budgets devoted to capital projects rose from 46 to 61 per cent.

He also disclosed that government-backed credit initiatives had unlocked over N64bn for 174,000 borrowers, while more than 350,000 Nigerians had accessed approximately N53bn in consumer credit.

In her opening remarks, the Director-General of the National Pension Commission, Omolola Oloworaran, announced that the guaranteed minimum pension had been fixed at N52,500 monthly.

“The minimum pensions in the Federal Republic of Nigeria is 52,500 naira every month,” she said.

According to her, 173,209 retirees qualify for the guarantee, comprising 34 per cent from federal service, 12 per cent from state employment and 54 per cent from the private sector.

She explained that the amount had been actuarially validated and would be subject to periodic review.

“The figure was not plucked from the air. It has been validated by an actuary, and it is subject to review,” Oloworaran noted.

She disclosed that more than N400bn was available in the Pension Protection Fund to finance the guarantee, while more than 65 per cent of private-sector retirees currently earned below the new threshold.

The PenCom boss also revealed that states inherited over N2tn in pension liabilities, of which N1.07tn had been settled.

Sami Tunji is a Senior Business Correspondent at Punch Newspapers with about five years of experience in data-driven reporting. He covers finance, ICT, and broader macroeconomic issues, combining analytical insight with clear storytelling. Sami’s work reflects strong editorial judgment, professional development, and a commitment to accurate and informative business journalism.

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