Key Takeaways
- • Tony Elumelu, Chairman of Heirs Holdings and Transcorp, publicly backed the N52,500 monthly minimum pension guarantee for retirees in Nigeria's Contributory Pension Scheme, which President Bola Tinubu recently approved.
- • The Minimum Pension Guarantee takes effect immediately and will be administered by the National Pension Commission (PenCom), affecting 173,209 retirees currently receiving less than N52,500.
- • The guarantee is funded from a N400 billion Pension Protection Fund, to which the federal government and pension industry have contributed, with state governments required to pay in before their retirees can benefit.
- • PenCare, a free healthcare plan for low-income retirees funded by the pension industry, has raised more than N7 billion, with health insurance premiums paid for almost 30,000 retirees.
- • MoneyCentral estimates the top-ups would cost about N67.6 billion a year if every eligible retiree is currently paid about N20,000.
Summary
Tony Elumelu, Chairman of Heirs Holdings and Transcorp, has endorsed the minimum pension of N52,500 a month for retirees in the Contributory Pension Scheme, recently approved by President Bola Tinubu. The provision has been in Nigeria's pension law since 2004 but was never used. The President also launched PenCare, a free healthcare plan for low-income retirees that the pension industry funds. Elumelu described the two programmes as "investments in human dignity," saying they "address two fundamental concerns of every retiree: access to healthcare and security of income." He particularly praised the pension industry for funding PenCare, calling it "a powerful demonstration of what responsible institutions can achieve when they put people first," and said the private sector "stands ready to support policies and partnerships that strengthen our institutions."
PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will be raised to that level, with some having received just over N20,000 a month. The Minimum Pension Guarantee takes effect immediately and will be run by PenCom. It is paid from a N400 billion Pension Protection Fund, to which the federal government and the pension industry have contributed. State governments must also pay in before their retirees can benefit. Oloworaran said the figure "was not plucked from the air," that it had been validated by an actuary, and that it is subject to review. She warned that "if people are not contributing, we'll run out of funds" and asked private companies to contribute.
On healthcare, PenCare has raised more than N7 billion, and health insurance premiums have been paid for almost 30,000 retirees. Between 25,000 and 30,000 health access cards were issued in a pilot before the launch. Retirees without a card can request one from their pension fund administrator (PFA).
According to MoneyCentral calculations, the guarantee is affordable in the short term: if every eligible retiree is currently paid about N20,000, the top-ups would cost about N67.6 billion a year. Elumelu framed the programmes within his "Africapitalism" philosophy that growth must "translate into improved lives."
PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will be raised to that level, with some having received just over N20,000 a month. The Minimum Pension Guarantee takes effect immediately and will be run by PenCom. It is paid from a N400 billion Pension Protection Fund, to which the federal government and the pension industry have contributed. State governments must also pay in before their retirees can benefit. Oloworaran said the figure "was not plucked from the air," that it had been validated by an actuary, and that it is subject to review. She warned that "if people are not contributing, we'll run out of funds" and asked private companies to contribute.
On healthcare, PenCare has raised more than N7 billion, and health insurance premiums have been paid for almost 30,000 retirees. Between 25,000 and 30,000 health access cards were issued in a pilot before the launch. Retirees without a card can request one from their pension fund administrator (PFA).
According to MoneyCentral calculations, the guarantee is affordable in the short term: if every eligible retiree is currently paid about N20,000, the top-ups would cost about N67.6 billion a year. Elumelu framed the programmes within his "Africapitalism" philosophy that growth must "translate into improved lives."
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