Tinubu Assures Retirees of Dignity, Security with N758bn Pension Bond

President Bola Tinubu assured Nigerian retirees that his administration is committed to restoring dignity and financial security through the N758 billion Federal Government Pension Bond and other pension reforms. Speaking at the inaugural National Pension Week Leadership Summit in Abuja, where he was represented by Secretary to the Government of the Federation George Akume, Tinubu said pension benefits are entitlements earned through service rather than government favours. He said his administration inherited pension obligations left unsettled for years and described the bond as an act of restitution rather than an accounting exercise.

At the same summit, Director-General of the National Pension Commission (PenCom), Omolola Oloworaran, ruled out any extension of the June 30, 2027 recapitalisation deadline for Pension Fund Administrators and Pension Fund Custodians. She said the next phase of reform would prioritise institutional resilience, stronger investment performance and improved retirement benefits over industry asset growth alone, stating, "Size is what we have achieved. Strength is what we now demand."

Oloworaran said almost 70 per cent of private-sector retirees receive pensions below the national minimum wage, and that more than 55 per cent of retirees receiving sub-minimum-wage pensions came from the private sector. She attributed part of the problem to contributions being calculated on pensionable earnings rather than full emoluments under the existing 18 per cent statutory rate (10 per cent employer, 8 per cent employee). PenCom will use enforcement provisions of the Pension Reform Act to recover unpaid contributions and sanction employers who deduct contributions without remitting them.

PenCom also secured commitments from PFAs to open three million additional funded and active accounts within one year, targeting traders, artisans, farmers, transport operators and other self-employed workers through personal pension plans, accredited pension agents and digital onboarding. Oloworaran noted a coverage gap of roughly nine Nigerians outside the scheme for every one covered. Tinubu also announced PenCare and the Minimum Pension Guarantee, which Oloworaran said is expected to be launched as part of a Pension Security Initiative on November 10, subject to schedule.