Key Takeaways
- • President Bola Tinubu approved a N758bn Federal Government Pension Bond to settle outstanding accrued pension rights and reinforce the Pension Protection Fund, announced on Thursday at the inaugural National Pension Week Leadership Summit in Abuja.
- • The administration plans to activate the Minimum Pension Guarantee under the Pension Reform Act 2014, a provision the President said had gone unimplemented for more than 11 years.
- • Tinubu announced PenCare, a national retiree wellbeing programme targeting healthcare support for low-income pensioners.
- • The President warned employers against deducting pension contributions from salaries without remitting them, calling non-remittance a breach of trust, and directed the National Pension Commission to enforce the rules impartially.
- • Pension fund managers should be judged by benefits delivered to contributors rather than assets under management, with investments required to beat inflation and meet strict risk-and-return standards.
Summary
President Bola Tinubu has approved a N758bn Federal Government Pension Bond aimed at settling outstanding accrued pension rights and reinforcing the Pension Protection Fund. Speaking at the inaugural National Pension Week Leadership Summit at the Transcorp Hilton, Abuja, the President was represented by Secretary to the Government of the Federation, Senator George Akume. Tinubu described the bond as a significant intervention addressing pension liabilities inherited by his administration, including accrued rights owed to retirees who had waited extended periods for their entitlements, and characterised it as restitution for Nigerians whose service had not been matched by timely retirement payments.
The President also announced plans to activate the Minimum Pension Guarantee under the Pension Reform Act 2014, which he said had remained unimplemented for more than 11 years. The government also intends to launch PenCare, a national programme to improve access to essential healthcare for low-income pensioners, extending protection beyond savings and periodic payments.
On the regulatory side, Tinubu warned public and private employers against deducting pension contributions from employee salaries without remitting them to the appropriate accounts, describing this as a breach of trust. He charged the National Pension Commission with enforcing the relevant laws impartially. He also urged Pension Fund Administrators and Pension Fund Custodians to strengthen expertise, diversify investments responsibly and reduce operating costs, stating that fund managers should be assessed by benefits delivered rather than assets under management.
Tinubu stressed that pension investments must generate returns that protect savings against inflation while balancing capital preservation and sustainable growth, and that any deployment of pension assets into infrastructure or productive enterprises must meet strict risk-and-return requirements. He further called for extending the Contributory Pension Scheme to self-employed Nigerians, including traders, artisans, farmers and transport workers, through the Personal Pension Plan and additional distribution channels. He quoted himself saying, "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."
The President also announced plans to activate the Minimum Pension Guarantee under the Pension Reform Act 2014, which he said had remained unimplemented for more than 11 years. The government also intends to launch PenCare, a national programme to improve access to essential healthcare for low-income pensioners, extending protection beyond savings and periodic payments.
On the regulatory side, Tinubu warned public and private employers against deducting pension contributions from employee salaries without remitting them to the appropriate accounts, describing this as a breach of trust. He charged the National Pension Commission with enforcing the relevant laws impartially. He also urged Pension Fund Administrators and Pension Fund Custodians to strengthen expertise, diversify investments responsibly and reduce operating costs, stating that fund managers should be assessed by benefits delivered rather than assets under management.
Tinubu stressed that pension investments must generate returns that protect savings against inflation while balancing capital preservation and sustainable growth, and that any deployment of pension assets into infrastructure or productive enterprises must meet strict risk-and-return requirements. He further called for extending the Contributory Pension Scheme to self-employed Nigerians, including traders, artisans, farmers and transport workers, through the Personal Pension Plan and additional distribution channels. He quoted himself saying, "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."
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