* Launches minimum pension guarantee
* After 22-year partial implementation of Pension Reform Act
By Chesa Chesa
President Bola Tinubu has announced the commencement of the Minimum Pension Guarantee under the Contributory Pension Scheme, ending what he described as a 22-year delay in implementing the provision of the Pension Reform Act.
Tinubu also launched PenCare, a pension industry-funded healthcare initiative designed to provide low-income retirees with free access to essential medical services.
The President made the announcements in an address to Nigerians, declaring that the Minimum Pension Guarantee would take effect immediately and be administered by the National Pension Commission (PenCom) in accordance with the Pension Reform Act.
He said the initiative would ensure that no contributor under the Contributory Pension Scheme falls below a guaranteed minimum pension.
Tinubu noted that Sections 71 of the 2004 Pension Reform Act and Sections 82 and 84 of the 2014 Act had provided for the guarantee and established a fund to support its implementation, but successive administrations failed to activate the provision.
“Twenty-two years. Four Presidents before me. Not one naira paid under that guarantee. Not one retiree given a floor. Not one government that stopped to ask what happens to a pensioner when the hospital bill arrives,” he said.
The President described the commencement of the scheme as the fulfilment of a longstanding obligation to Nigerian workers, insisting that the minimum pension guarantee was a right rather than an act of government generosity.
He directed future administrations to sustain and improve the arrangement, warning against any attempt to remove the protection provided to retirees.
On the healthcare initiative, Tinubu said PenCare would enable low-income pensioners to access essential medical services without charge.
He explained that the programme was designed to address the financial difficulties retirees face in meeting healthcare expenses, particularly as they grow older.
“A pension that cannot pay for medicine is not a pension. It is a receipt,” he said.
The President also announced that the first PenCare Health Access Cards would be presented to pioneer beneficiaries.
Tinubu used the occasion to highlight his administration’s pension reforms, including the issuance of a N758 billion bond to settle outstanding pension arrears.
He said the government had also approved a consequential adjustment of N32,000 monthly for federal pensioners whose pensions were below the national minimum wage.
According to him, legacy pensioners of the Nigeria Social Insurance Trust Fund (NSITF), some of whom previously received N18,000 monthly, now collect as much as N206,000.
He further said the administration had introduced Pension Boost, describing it as the first enhancement of its kind under the Contributory Pension Scheme, with the additional funds already paid to retirees.
On the economy, Tinubu defended the removal of petrol subsidy and unification of the foreign exchange market, saying the decisions were necessary to redirect public resources towards infrastructure, social investment and development.
He cited the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Second Niger Bridge and railway projects as evidence of investments in national infrastructure.
The President also highlighted the establishment of the Nigerian Education Loan Fund (NELFUND), tax reforms and the National Credit Guarantee Company as measures aimed at expanding opportunities for Nigerians.
He disclosed that the National Credit Guarantee Company had facilitated more than N64 billion in credit for over 174,000 borrowers, including thousands accessing formal loans for the first time.
Similarly, he said the Nigerian Consumer Credit Corporation (CREDICORP) had provided more than N53 billion in credit to over 350,000 Nigerians across the country’s 774 local government areas.
Tinubu said nearly 60 per cent of CREDICORP beneficiaries were women, while young people accounted for almost half.
Defending the economic reforms, the President cited an October World Bank report which, according to him, showed that state government revenues increased by about 93 per cent in real terms between 2023 and 2025.
He added that the proportion of state budgets allocated to capital projects rose from 46 per cent to 61 per cent, while state governments had used increased resources to settle outstanding pension liabilities exceeding N1 trillion.
Tinubu commended state governors across party lines for investing in infrastructure and addressing pension obligations.
Turning to the 2027 political contest, the President urged Nigerians to assess political aspirants based on their records in public office rather than campaign promises.
He challenged former public office holders to account for their contributions to pension welfare and social security during their years in government.
Tinubu also criticised calls for the restoration of petrol subsidy, arguing that reversing the policy would reduce resources available to state governments for infrastructure and pension payments.
He reaffirmed his commitment to the economic reforms, declaring that Nigeria would not return to the previous subsidy regime.
Addressing workers, employers and retirees, the President urged employers in both the public and private sectors to remit workers’ pension contributions promptly.
He warned that withholding pension contributions amounted to depriving workers of their financial security in retirement.
Tinubu also encouraged young Nigerians to begin contributing to pension schemes early, saying the savings would provide financial stability in old age.
He concluded by assuring Nigerian workers and retirees that his administration was committed to protecting their dignity through improved pension payments and access to healthcare.
