Tinubu Warns Pension Operators Against Reckless Investment, Approves N758bn Bond - Head Topics

President Bola Tinubu warned pension fund administrators and custodians against exposing workers' retirement savings to reckless investments, saying that the pursuit of higher returns or national development must not compromise contributors' financial security. Speaking on Thursday at the National Pension Conference and Awards at the Transcorp Hilton in Abuja, part of the maiden National Pension Week 2026, the President was represented by Secretary to the Government of the Federation George Akume. He said pension assets must be managed with transparency, accountability and strict risk-management standards, and that every investment must stand on its own merits and pass rigorous tests of risk and return.

Tinubu announced that his administration approved a N758 billion Federal Government Pension Bond to settle accrued pension rights and strengthen the Pension Protection Fund, describing it as restitution to retirees who had waited years for their earned entitlements. He also announced the commencement of the Minimum Pension Guarantee, a provision of the Pension Reform Act 2014 that had not been implemented since enactment more than 11 years ago, and the launch of PenCare, a national retiree wellbeing programme that will initially give low-income retirees access to essential healthcare. He warned that inflation was already eroding the purchasing power of retirement savings and urged operators to deliver sustainable returns without compromising capital preservation.

PenCom Director-General Omolola Oloworaran disclosed that pension assets increased from N20.79 trillion in July 2024 to N31.8 trillion in August 2026, an increase of N11.01 trillion, or approximately 53 per cent. She expressed concern that this growth had not translated into adequate retirement income, noting that almost 70 per cent of private-sector employees earn below the national minimum wage in retirement and that more than 55 per cent of retirees whose pensions fall below the minimum wage come from the private sector. She attributed part of the problem to employers calculating contributions on limited portions of earnings, and noted the statutory combined contribution of 18 per cent (10 per cent employer, eight per cent employee). She challenged operators to generate returns above inflation and said PenCom had secured industry commitments to establish three million additional funded, active retirement savings accounts within the next year.

Oloworaran said the Pension Security Initiative, incorporating PenCare and the minimum pension guarantee, would be launched on November 10, and directed pension fund administrators and custodians to complete recapitalisation by June 30, 2027. She also reported pension increases of 67 to 120 per cent for some federal retirees and above 1,000 per cent for certain Nigeria Social Insurance Trust Fund pensioners, and announced an exit benefit scheme for retirees from treasury-funded federal ministries, departments and agencies. Jallo Mohammed, Chairman of the House of Representatives Committee on Pensions, said the National Assembly is reviewing the Pension Reform Act 2014, with proposed amendments progressing ahead of public hearings, and that the committee is engaging NNPC Pension Fund Limited over compliance with PenCom directives.