Tinubu cautions pension managers against risky investments - Punch Newspapers

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

Tinubu warned that inflation is already eroding the purchasing power of retirement savings, requiring operators to deliver sustainable returns while preserving capital. He urged administrators and custodians to strengthen investment expertise, diversify portfolios responsibly, reduce operating costs and improve accountability. He also directed employers to remit deducted contributions promptly, describing withholding as a breach of trust, and charged PenCom with enforcing pension regulations without fear or favour. The administration has approved N738bn to address outstanding pension obligations and strengthen the Pension Protection Fund, and the minimum pension guarantee under the Pension Reform Act 2014 has commenced.

Speaking separately, PenCom Director-General Omolola Oloworaran said pension assets grew from N20.79tn in July 2024 to N31.8tn in August 2026, according to the figures she disclosed. She expressed concern that this growth has not translated into adequate retirement income, noting that almost 70 per cent of private-sector employees earn below the national minimum wage in retirement. 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). She challenged operators to beat inflation and said PenCom has secured commitments for three million additional funded accounts within a year. A Pension Security Initiative, incorporating the PenCare healthcare programme and minimum pension guarantee, is scheduled for launch on November 10.

Oloworaran also set a recapitalisation deadline of June 30, 2027 for all pension fund administrators and custodians. Other measures include an exit benefit scheme for retirees from treasury-funded federal MDAs and reported pension increases of 67 to 120 per cent for some federal retirees. 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.