Tinubu Challenges Successors Not To Remove Minimum Pension Guarantee

President Bola Tinubu has challenged future administrations not to abolish or reverse the newly activated Minimum Pension Guarantee, declaring that the policy must remain a permanent commitment between the Nigerian state and workers.

Tinubu said the minimum pension guarantee, which he said had remained unimplemented for 22 years despite provisions in successive Pension Reform Acts, was a statutory right of workers and not a discretionary benefit that any government could withdraw.

The President, who was represented by Senate President Godswill Akpabio at the launch of the Presidential Pension Security Initiative in Abuja, said the commencement of the scheme marked a significant step towards strengthening retirement security in Nigeria.

He specifically directed future administrations to preserve the minimum pension threshold, insisting that while subsequent governments could increase it, they must never remove it.

“To every administration that comes after me, hear me clearly. This floor is now part of a compact between the Nigerian state and the Nigerian worker. Raise it, but never remove the floor,” he said.

The Minimum Pension Guarantee is designed to ensure that eligible retirees under the Contributory Pension Scheme do not receive pensions below a prescribed minimum threshold.

Tinubu said the initiative would address a longstanding gap in the country’s pension administration, noting that successive administrations had failed to implement the statutory provision despite its inclusion in pension reform legislation.

According to him, Section 71 of the Pension Reform Act 2004 and Sections 82 and 84 of the 2014 Act provided for the guarantee and the establishment of a fund to finance it.

He lamented that the provision had remained unimplemented for more than two decades, leaving retirees without the protection envisaged by the legislation.

“Twenty-two years, four presidents have gone by, and the laws were not implemented. Not one naira paid under that guarantee. Not one retiree given a floor,” he said.

Tinubu declared that his administration had now activated the scheme, stressing that retirement security should be treated as an enforceable entitlement rather than an act of government generosity.

“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. Not because this government is generous, but because it is their right,” he stated.

The President also launched the PenCare initiative, a healthcare programme designed to provide low-income retirees with access to essential medical services without charge.

He explained that the initiative, which is being funded by the pension industry, would complement the minimum pension guarantee by addressing healthcare challenges confronting Nigerians after retirement.

Tinubu said many retirees faced financial difficulties when confronted with medical emergencies, noting that healthcare expenses could quickly deplete retirement savings and leave pensioners dependent on their families.

“A pension is more than a paycheque. Ask any Nigerian who has finished their father’s pension. It was not food. It was not rent. It was a hospital bed,” he said.

“One illness at 68 years can swallow 40 years of savings and leave the children to carry the burden of what remains thereafter.”

He disclosed that the first PenCare health access cards would be distributed to pensioners and beneficiaries in the coming months.

Tinubu said the two initiatives were part of efforts to ensure that retirement protection extended beyond monthly income payments to include access to essential healthcare.

The President also highlighted other interventions by his administration to address outstanding pension obligations, including the issuance of a N758bn bond to settle pension arrears.

He said seven out of every 10 federal pensioners whose monthly payments were below the national minimum wage had benefited from the government’s intervention.

According to him, the administration approved a consequential adjustment of N32,000 monthly to raise their pensions to the minimum wage level or above.

He further disclosed that some legacy pensioners under the Nigerian Social Insurance Trust Fund, who previously received N18,000 monthly, now collect as much as N206,000.

“Again, we did not promise; we paid them,” he said.

The President also stated that his administration had implemented the first pension enhancement under the Contributory Pension Scheme, adding that the additional payments had already reached beneficiaries.

Tinubu called on employers in the public and private sectors to ensure prompt remittance of pension contributions deducted from workers’ salaries, warning that failure to transfer the funds amounted to depriving employees of their retirement savings.

“Every naira you withdrew is stolen from somebody’s old age. It is not your money. Never will be,” he warned.

He urged young Nigerians to begin contributing towards retirement early, noting that pension security should be a priority throughout their working lives.

The President also said the Federal Government’s economic reforms had increased resources available to state governments, enabling them to address outstanding pension liabilities alongside investments in infrastructure, education and healthcare.

He cited a World Bank report which, according to him, showed that state revenues increased by about 93 per cent in real terms between 2023 and 2025. He added that states had used part of the additional resources to settle more than N1tn in outstanding obligations, including pension debts.

Tinubu maintained that the ultimate objective of the pension reforms was to ensure that Nigerians who spent their productive years serving the country could retire with dignity, financial security and access to healthcare.

He said the government had a responsibility to honour the contributions of workers and prevent them from facing poverty and medical hardship after retirement.

“Nigeria kept you waiting for too long. Today, Nigeria keeps faith with you,” he said.