The National Pension Commission (PenCom) says 173,209 low-income retirees will benefit from the Pension Industry Healthcare Plan for Retirees (PenCare) and an N52,500 monthly minimum pension under the new initiative.

PenCom’s director-general, Omolola Oloworaran, announced this at the inauguration of the Presidential Pension Security Initiative in Abuja on Tuesday.

The initiative, ‘Securing Every Nigerian’s Future’, is designed to strengthen retirement security and improve the welfare of vulnerable pensioners.

Ms Oloworaran said that more than N400 billion had been provided in the Pension Protection Fund to finance the guaranteed minimum pension. She said that the amount was actuarially validated and subject to periodic review.

According to her, beneficiaries comprise 34 per cent federal retirees, 12 per cent state retirees and 54 per cent private-sector retirees.

Ms Oloworaran said more than 65 per cent of private-sector retirees currently earned below the proposed minimum pension, adding that the initiative fulfilled a provision of the 2004 Pension Reform Act, which guaranteed minimum pensions for contributors.

She said that the provision had remained largely unimplemented for 22 years due to inadequate funding.

Ms Oloworaran said that the initiative would provide financial relief to vulnerable retirees who struggled to meet basic needs. She illustrated the situation with the story of a retired primary school teacher who earned less than N20,000 monthly. According to her, the pensioner postponed purchasing prescribed medication because of the difficult choice between healthcare and feeding.

Ms Oloworaran said the initiative would address both income insecurity and healthcare challenges among low-income retirees. She said that the pension industry had committed more than N7 billion to PenCare, its healthcare initiative for vulnerable pensioners.

She said that the fund had already covered insurance premiums for nearly 30,000 Nigerians, with the remaining balance supporting its sustainability, disclosing that more than N1.07 trillion had been paid towards inherited state pension liabilities exceeding N2 trillion.

She said that 13 states had either cleared their legacy pension obligations or achieved substantial progress in settling them. According to her, some states, including Lagos, Borno and Jigawa, have no outstanding legacy pension obligations.

Ms Oloworaran attributed the progress to increased resources available to state governments following the Federal Government’s economic reforms. She further announced plans to expand pension coverage to informal-sector workers, including traders, artisans, commercial riders and farmers.

The PenCom chief said that accredited pension agents would facilitate enrolment, while sustainable incentives would encourage participation across the informal economy. Ms Oloworaran also announced plans to mobilise pension funds for national infrastructure development.

She said that the pension industry had signed a memorandum of understanding with FSD Africa for a $750 million infrastructure bond. According to her, $200 million has been committed by the pension industry, while $50 million will come from development partners.

Ms Oloworaran said that the first $250 million had been committed, with deployment expected to commence before the end of the first half of 2027.

(NAN)