THE NATIONAL Pension Commission (PenCom) says 173,209 low-income retirees will benefit from the Pension Industry Healthcare Plan for Retirees (PenCare) and N52,500 monthly minimum pension under the new initiative.
The Director-General (D-G) of PenCom, Ms Omolola Oloworaran, announced this at the inauguration of the Presidential Pension Security Initiatives in Abuja on Tuesday.
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The initiative, themed “Securing Every Nigerian’s Future,” is designed to strengthen retirement security and improve the welfare of vulnerable pensioners.
Oloworaran said that more than N400 billion had been provided in the Pension Protection Fund to finance the guaranteed minimum pension.
She said that the amount was actuarially validated and subject to periodic review.
According to her, beneficiaries comprise 34 per cent federal retirees, 12 per cent state retirees and 54 per cent private-sector retirees.
Oloworaran said that more than 65 per cent of private-sector retirees currently earned below the proposed minimum pension.
The D-G said that the initiative fulfilled a provision of the 2004 Pension Reform Act, which guaranteed minimum pensions for contributors.
She said that the provision had remained largely unimplemented for 22 years due to inadequate funding.
Oloworaran said that the initiative would provide financial relief to vulnerable retirees who struggled to meet basic needs.
She illustrated the situation with the story of a retired primary school teacher who earned less than N20,000 monthly.
According to her, the pensioner postponed purchasing prescribed medication because of the difficult choice between healthcare and feeding.
Oloworaran said the initiative would address both income insecurity and healthcare challenges among low-income retirees.
She said that the pension industry had committed more than N7 billion to PenCare, its healthcare initiative for vulnerable pensioners.
The D-G said that the fund had already covered insurance premiums for nearly 30,000 Nigerians, with the remaining balance supporting its sustainability.
Oloworaran also disclosed that more than N1.07 trillion had been paid towards inherited state pension liabilities exceeding N2 trillion.
She said that 13 states had either cleared their legacy pension obligations or achieved substantial progress in settling them.
According to her, some states, including Lagos, Borno and Jigawa, have no outstanding legacy pension obligations.
Oloworaran attributed the progress to increased resources available to state governments following the Federal Government’s economic reforms.
She further announced plans to expand pension coverage to informal-sector workers, including traders, artisans, commercial riders and farmers.
The D-G said that accredited pension agents would facilitate enrolment, while sustainable incentives would encourage participation across the informal economy.
Oloworaran also announced plans to mobilise pension funds for national infrastructure development.
She said that the pension industry had signed a Memorandum of Understanding (MoU) with FSD Africa for a 750-million-dollar infrastructure bond.
According to her, 200 million dollars has been committed by the pension industry, while 50 million dollars will come from development partners.
Oloworaran said that the first 250 million dollars had been committed, with deployment expected to commence before the end of the first half of 2027.
The D-G said that the investment would support infrastructure development, job creation and improved returns on pension assets.
She described the initiatives as a major transformation of Nigeria’s pension system and a fulfilment of the country’s commitment to retirees.
Oloworaran said that the Federal Government had cleared its outstanding legacy pension obligations.
The D-G also said that the time required to process pension payments had reduced from 21 months to 48 hours.
She commended President Bola Tinubu for his commitment to workers and retirees, describing him as a champion of pensioners.
Oloworaran urged private-sector employers to contribute to the Pension Protection Fund to ensure its long-term sustainability.
She said the success of the initiative required collaboration among government, employers and other stakeholders in the pension industry.
The Chairman of Heirs Holdings, Mr Tony Elumelu commended Tinubu for inaugurating the initiatives aimed at improving retirees’ welfare.
He said that the initiatives would promote access to healthcare, income security and dignity among Nigerian retirees.
Elumelu also commended PenCom and the pension industry for funding the PenCare initiative.
He reaffirmed the private sector’s readiness to support partnerships that strengthen institutions and secure Nigerians’ future.
The chairman said that a society that protects its elderly inspires confidence among younger generations. (NAN)
