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‘No Retiree Will Be Abandoned’, Tinubu Declares, Unveils New Pension Guarantees
‘No Retiree Will Be Abandoned’, Tinubu Declares, Unveils New Pension Guarantees
Tinubu declares no Nigerian who served the country will be abandoned in retirement.
FG moves to implement Minimum Pension Guarantee, 11 years after enactment of Pension Reform Act 2014.
N758bn pension bond approved to settle accrued pension rights and strengthen pension protection.
New PenCare programme to provide essential healthcare for low-income retirees.
October 29, () – President Bola Tinubu has declared that no Nigerian who has served the country will be abandoned in retirement, pledging to guarantee greater pension security through the implementation of the long-delayed Minimum Pension Guarantee and a new healthcare programme for low-income retirees.
A statement signed by Yomi Odunuga, Special Adviser on Media and Publicity to the Secretary to the Government of the Federation (SGF), said the President announced the measures on Thursday at the inaugural National Pension Week Leadership Summit held at the Transcorp Hilton, Abuja.
Delivering the President’s address, themed “Pensions for All: Building a Secure Future Together,” Secretary to the Government of the Federation (SGF), Senator George Akume said the administration regarded pension obligations as a responsibility owed to workers rather than a discretionary benefit.
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“A pension is not a favour granted by Government. It is a wage earned, deferred and held in trust. It is a promise. And this Administration has resolved that the promise will be kept,” Tinubu said.
The President disclosed that his administration inherited outstanding pension obligations that had remained unsettled for years, leaving some retirees waiting for their accrued pension rights.
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He said he approved the N758 billion Federal Government Pension Bond to settle the accrued rights and strengthen the Pension Protection Fund.
According to Tinubu, the intervention was intended to address longstanding delays and restore confidence among retirees who had waited for benefits earned during their years of service.
“That was not an accounting exercise. It was an act of restitution to Nigerians who served their country and were made to wait for what they had earned,” he said through the SGF.
The bond forms part of the administration’s stated efforts to improve pension administration and ensure that retirement benefits are paid in accordance with the government’s obligations to eligible beneficiaries.
Secretary to the Government of the Federation SGF George Akume
Tinubu Moves to Implement 11-Year-Old Pension Guarantee
In a major policy announcement, Tinubu said his administration would implement the Minimum Pension Guarantee provided for under the Pension Reform Act 2014.
The provision, which the President said had remained unimplemented for more than 11 years after the law was enacted, is intended to establish a minimum level of pension protection for eligible retirees.
“Since enactment, that promise has never been honoured. Under President Tinubu, it will be,” Akume said on the President’s behalf.
The announcement comes amid efforts to strengthen the Contributory Pension Scheme and address concerns about the adequacy of retirement benefits.
The Pension Reform Act 2014 provides the legal framework for the scheme, under which retirement savings accumulate through contributions made during workers’ active service.
Tinubu said the implementation of the guarantee would form part of his administration’s commitment to restoring dignity and financial security to retirees.
PenCare to Provide Healthcare For Low-Income Retirees
Tinubu also announced the launch of PenCare, a national retiree wellbeing programme that will initially provide low-income retirees with access to essential healthcare services.
The programme is intended to extend retirement support beyond the management of pension savings to address the healthcare needs of retirees with limited financial resources.
Tinubu said the initiative reflected the need for a pension system that delivers practical protection and improves the wellbeing of beneficiaries.
He described a strong pension system as both a social protection imperative and a strategic component of economic transformation under his administration’s Renewed Hope Agenda.
According to him, pension funds can mobilise long-term domestic savings, deepen financial markets and support productive investments, while providing contributors with sustainable retirement benefits.
Employers Warned Against Non-Remittance
Tinubu stressed that government alone could not guarantee retirement security, urging regulators, employers, pension fund managers, state governments, organised labour and other stakeholders to strengthen compliance with pension laws.
He charged the National Pension Commission (PenCom) to remain firm, fair and forward-looking in enforcing the law without fear or favour.
The President also warned public and private sector employers against deducting pension contributions from workers’ salaries without remitting the funds to the appropriate pension accounts.
“To deduct a worker’s contribution and fail to remit it is not an administrative lapse. It is a breach of trust,” he said.
He urged employers to remit contributions fully and promptly, stressing that compliance was essential to protecting workers’ retirement savings and ensuring the effective operation of the pension system.
Fund Managers Told to Improve Returns
The President also challenged Pension Fund Administrators and Pension Fund Custodians to deepen their expertise, diversify investments responsibly, reduce costs and focus on the benefits contributors ultimately receive.
He warned that pension savings must generate returns capable of protecting their value against inflation, noting that preserving capital without adequate growth could gradually erode the purchasing power of retirees.
“Preservation without growth is a slow erosion. Retirement savings that fail to keep pace with inflation quietly betray the very people who saved them,” he said.
Tinubu maintained that pension funds could contribute to national development through investments in infrastructure and productive enterprises but insisted that such investments must not compromise contributors’ interests.
He said every investment must meet rigorous risk-and-return requirements, adding that the pursuit of national development should not come at the expense of pensioners’ financial security.
FG Targets Informal Sector Workers
Tinubu also directed an aggressive expansion of pension coverage beyond the formal employment sector, identifying traders, artisans, farmers, transport workers and self-employed Nigerians as groups requiring access to structured retirement savings.
He called for wider participation in the Personal Pension Plan and the development of new distribution channels to enable more Nigerians outside conventional employment arrangements to prepare for retirement.
“Pensions for All must mean exactly that: all,” the President said.
He urged state governments, organised labour and other stakeholders to support efforts to increase enrolment, improve compliance and strengthen the administration of pension benefits nationwide.
Tinubu said the National Pension Week Leadership Summit must produce measurable commitments, including increased enrolment, faster payment of benefits, stronger investment performance, clearer disclosure and improved outcomes for retirees.
“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.
“Above all, no Nigerian who has served this nation will be forgotten in retirement. Nigeria will keep faith with those who kept faith with Nigeria,” he said.
At the summit, Akume received an award of Excellence in Pension Sector Leadership and Support in recognition of his contributions to pension-related issues in Nigeria.
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