Key Takeaways
- • President Bola Tinubu pledged to implement the long-delayed Minimum Pension Guarantee under the Pension Reform Act 2014 and expand the PenCare healthcare support programme for retirees, speaking at the National Pension Conference and Awards in Abuja, held as part of the maiden National Pension Week 2026.
- • PenCom Director-General Omolola Oloworaran reported Nigeria's pension assets rose from N20.79 trillion in July 2024 to N31.8 trillion in August 2026, a N11.01 trillion (about 53 per cent) increase, while warning that many contributors, particularly private-sector workers, will not receive adequate retirement income.
- • PenCom ordered pension fund administrators and custodians to complete recapitalisation by 30 June 2027, and secured industry commitments to open three million additional funded, active Retirement Savings Accounts within a year.
- • The President the Pension Security Initiative, incorporating PenCare and the minimum guarantee, is slated for launch on 10 November, and PenCare's initial phase targets 30,000 retirees.
- • Tinubu warned fund managers against reckless investments and urged strict risk management, transparency and returns that beat inflation, stating that pension performance should be judged by retirees' security rather than assets under management.
- • The National Assembly is reviewing the Pension Reform Act 2014 and related legislation, including intelligence and military pensions, with House Pensions Committee Chairman Jallo Mohammed also engaging NNPC Pension Fund Limited over PenCom compliance.
Summary
President Bola Tinubu has pledged to implement a long-delayed Minimum Pension Guarantee and expand healthcare support for retirees, according to remarks delivered on his behalf by Secretary to the Government of the Federation George Akume at the National Pension Conference and Awards at the Transcorp Hilton, Abuja. The event formed part of the maiden National Pension Week 2026. Akume said the administration regarded pension security as a national obligation, stating that "a pension is not a favour granted by Government. It is a wage earned, deferred and held in trust."
The Minimum Pension Guarantee, provided for under the Pension Reform Act 2014, is designed as a safety net for eligible retirees under the Contributory Pension Scheme whose retirement income is inadequate. The minimum amount and detailed implementation arrangements will depend on forthcoming guidelines from the National Pension Commission (PenCom). The administration is also expanding PenCare, a healthcare support programme for low-income retirees. PenCom has begun rolling out PenCare with an initial phase targeting 30,000 retirees, funded jointly by the commission and participating pension fund operators. The administration also reaffirmed its commitment to the N758 billion Federal Government Pension Bond, approved to settle outstanding accrued pension rights and strengthen the Pension Protection Fund.
PenCom Director-General Omolola Oloworaran said pension assets had grown from N20.79 trillion in July 2024 to N31.8 trillion in August 2026, but warned that asset growth had not translated into adequate retirement income. She said almost 70 per cent of private-sector employees earn below the national minimum wage in retirement, and 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, noting the statutory combined contribution of 18 per cent (10 per cent employer, eight per cent employee). The commission secured commitments from industry operators to open three million additional funded, active Retirement Savings Accounts within a year, and directed administrators and custodians to complete recapitalisation by 30 June 2027. Oloworaran also announced that the Pension Security Initiative, incorporating PenCare and the minimum guarantee, will be launched by the President on 10 November. She cited 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.
Tinubu cautioned pension fund administrators and custodians against exposing retirement savings to reckless investments, stating that "national development must never come at the expense of pensioners." He called for transparent, accountable management with strict risk controls, warned that inflation is eroding purchasing power, and urged operators to diversify responsibly and reduce operating costs. He also described deducting contributions without remitting them to Retirement Savings Accounts as a breach of trust, and called for expanded coverage among self-employed Nigerians through the Personal Pension Plan.
Separately, House of Representatives Committee on Pensions Chairman Jallo Mohammed said the National Assembly is reviewing the Pension Reform Act 2014 and related legislation ahead of public hearings, and is engaging NNPC Pension Fund Limited over compliance with PenCom directives.
The Minimum Pension Guarantee, provided for under the Pension Reform Act 2014, is designed as a safety net for eligible retirees under the Contributory Pension Scheme whose retirement income is inadequate. The minimum amount and detailed implementation arrangements will depend on forthcoming guidelines from the National Pension Commission (PenCom). The administration is also expanding PenCare, a healthcare support programme for low-income retirees. PenCom has begun rolling out PenCare with an initial phase targeting 30,000 retirees, funded jointly by the commission and participating pension fund operators. The administration also reaffirmed its commitment to the N758 billion Federal Government Pension Bond, approved to settle outstanding accrued pension rights and strengthen the Pension Protection Fund.
PenCom Director-General Omolola Oloworaran said pension assets had grown from N20.79 trillion in July 2024 to N31.8 trillion in August 2026, but warned that asset growth had not translated into adequate retirement income. She said almost 70 per cent of private-sector employees earn below the national minimum wage in retirement, and 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, noting the statutory combined contribution of 18 per cent (10 per cent employer, eight per cent employee). The commission secured commitments from industry operators to open three million additional funded, active Retirement Savings Accounts within a year, and directed administrators and custodians to complete recapitalisation by 30 June 2027. Oloworaran also announced that the Pension Security Initiative, incorporating PenCare and the minimum guarantee, will be launched by the President on 10 November. She cited 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.
Tinubu cautioned pension fund administrators and custodians against exposing retirement savings to reckless investments, stating that "national development must never come at the expense of pensioners." He called for transparent, accountable management with strict risk controls, warned that inflation is eroding purchasing power, and urged operators to diversify responsibly and reduce operating costs. He also described deducting contributions without remitting them to Retirement Savings Accounts as a breach of trust, and called for expanded coverage among self-employed Nigerians through the Personal Pension Plan.
Separately, House of Representatives Committee on Pensions Chairman Jallo Mohammed said the National Assembly is reviewing the Pension Reform Act 2014 and related legislation ahead of public hearings, and is engaging NNPC Pension Fund Limited over compliance with PenCom directives.
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