Key Takeaways
- • The National Pension Commission (PenCom) has begun paying a guaranteed minimum monthly pension of N52,500 to retirees under Nigeria's Contributory Pension Scheme, effective immediately, a provision in pension law since 2004 that had never been used.
- • PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will be raised to that threshold.
- • The guarantee is funded by a N400 billion Pension Protection Fund supported by the federal government and the pension industry; state governments must contribute before their retirees can benefit.
- • PenCare, a free healthcare plan for low-income retirees funded by the pension industry, has raised more than N7 billion, with health insurance premiums paid for almost 30,000 retirees.
- • Tony Elumelu, chairman of Heirs Holdings and Transcorp, publicly endorsed both initiatives, calling them "investments in human dignity" and praising the pension industry's financing of PenCare.
Summary
Nigeria has begun paying a guaranteed minimum monthly pension of N52,500 to retirees in the Contributory Pension Scheme, the country's system of individual retirement accounts for workers. According to the original report, the provision has existed in pension law since 2004 but had never been applied. The guarantee takes effect immediately and is administered by the National Pension Commission (PenCom).
PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will have their pensions raised to that level. Some had been receiving just over N20,000 a month. She said the figure was validated by an actuary, is subject to review, and is funded. The guarantee is paid from a N400 billion Pension Protection Fund to which the federal government and the pension industry have contributed. State governments must also pay in before their retirees can benefit. Oloworaran warned that "if people are not contributing, we'll run out of funds" and asked private companies to contribute. On MoneyCentral calculations cited in the report, topping up eligible retirees currently paid about N20,000 would cost roughly N67.6 billion a year.
Alongside the guarantee, President Bola Tinubu launched PenCare, a free healthcare plan for low-income retirees funded by the pension industry. Oloworaran said PenCare has raised more than N7 billion and that health insurance premiums have been paid for almost 30,000 retirees. Between 25,000 and 30,000 health access cards were issued in a pilot before the launch. Retirees without a card can request one from their pension fund administrator (PFA).
Tony Elumelu, chairman of Heirs Holdings and Transcorp, commended the administration and the pension industry at the Presidential Pension Security Initiatives Launch. He described both programmes as "investments in human dignity" that address retirees' access to healthcare and security of income, and praised the industry for funding PenCare as "a powerful demonstration of what responsible institutions can achieve when they put people first." He said the private sector "stands ready to support policies and partnerships that strengthen our institutions," and linked the initiatives to his Africapitalism philosophy that growth must translate into improved living conditions.
PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will have their pensions raised to that level. Some had been receiving just over N20,000 a month. She said the figure was validated by an actuary, is subject to review, and is funded. The guarantee is paid from a N400 billion Pension Protection Fund to which the federal government and the pension industry have contributed. State governments must also pay in before their retirees can benefit. Oloworaran warned that "if people are not contributing, we'll run out of funds" and asked private companies to contribute. On MoneyCentral calculations cited in the report, topping up eligible retirees currently paid about N20,000 would cost roughly N67.6 billion a year.
Alongside the guarantee, President Bola Tinubu launched PenCare, a free healthcare plan for low-income retirees funded by the pension industry. Oloworaran said PenCare has raised more than N7 billion and that health insurance premiums have been paid for almost 30,000 retirees. Between 25,000 and 30,000 health access cards were issued in a pilot before the launch. Retirees without a card can request one from their pension fund administrator (PFA).
Tony Elumelu, chairman of Heirs Holdings and Transcorp, commended the administration and the pension industry at the Presidential Pension Security Initiatives Launch. He described both programmes as "investments in human dignity" that address retirees' access to healthcare and security of income, and praised the industry for funding PenCare as "a powerful demonstration of what responsible institutions can achieve when they put people first." He said the private sector "stands ready to support policies and partnerships that strengthen our institutions," and linked the initiatives to his Africapitalism philosophy that growth must translate into improved living conditions.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.