Tinubu Launches N52,500 Minimum Monthly Pension for Nigerian Retirees
- President Tinubu activated a minimum pension guarantee under the Contributory Pension Scheme, ending a 22-year delay since the Pension Reform Act was passed
- The National Pension Commission confirmed 173,209 retirees qualify for the N52,500 monthly floor, with over 65% of private-sector retirees currently earning below that amount
- Tinubu also launched PenCare, a healthcare plan designed to give low-income pensioners access to essential medical services at no cost
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President Bola Tinubu on Tuesday activated two landmark pension initiatives in Abuja, including a N52,500 monthly minimum pension guarantee for 173,209 retirees under the Contributory Pension Scheme, closing out a 22-year gap in the implementation of the Pension Reform Act.
Tinubu, represented by Senate President Godswill Akpabio, made the announcements at the Presidential Pension Security Initiatives ceremony held at the State House Banquet Hall.
As reported by The Punch, President Tinubu formally declared the scheme active, saying:
"By the authority vested in me as President, Commander-in-Chief of the Armed Forces of the Federal Republic of Nigeria, I hereby declare the Minimum Pension Guarantee Scheme commenced."
The minimum pension provision was first written into law under the Pension Reform Act of 2004 and carried over into the 2014 legislation, but no administration had brought it into force until now. "From this day, there is a floor beneath the Nigerian retiree.
No one who contributed under the Contributory Pension Scheme will ever be allowed to fall below," Tinubu said, urging future governments to build on the threshold rather than discard it. "Raise it. But never remove the floor."
What the minimum pension guarantee covers
The Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, confirmed the N52,500 figure during her opening remarks, saying it had been independently verified.
"The minimum pension in the Federal Republic of Nigeria is 52,500 naira every month. The figure was not plucked from the air. It has been validated by an actuary, and it is subject to review," she said.
Of the 173,209 qualifying retirees, 54 per cent come from the private sector, 34 per cent from federal service, and 12 per cent from state employment.
Oloworaran also noted that more than 65 per cent of private-sector retirees currently earn below the new minimum, underscoring the scale of the problem the scheme is meant to address. More than N400bn sits in the Pension Protection Fund to finance the guarantee.
PenCare and other pension measures
Tinubu also inaugurated PenCare, the Pension Industry Healthcare Plan for Retirees, which will give low-income pensioners access to essential health services free of charge.
"PenCare gives our low-income retirees access to essential health care without charge," the President said.
He added that healthcare access cards would be distributed to beneficiaries within the coming months.
Beyond the two headline initiatives, Tinubu disclosed that his administration had issued a N758bn bond to clear pension arrears and approved a N32,000 monthly consequential adjustment for affected federal pensioners.
He said states had collectively paid out over N1tn in pension obligations, helped in part by revenue gains following fuel subsidy removal. Citing a World Bank report, he said states' revenues rose by about 93 per cent in real terms between 2023 and 2025.
Oloworaran added that states inherited over N2tn in legacy pension liabilities, of which N1.07tn had been settled.
How to claim pension benefits after retirement
Meanwhile, Legit.ng also reported that retirees should update their pension records and contact their PFA early to avoid delays when claiming benefits.
Eligible retirees can choose programmed withdrawals or a life annuity, while some may qualify to withdraw all their savings.
Payment depends on complete documents, verification and regulatory approval; retirees should avoid unofficial processing fees.
Source: Legit.ng
