President Bola Tinubu has warned that Nigeria’s efforts to finance infrastructure and other development projects must not come at the expense of pensioners’ retirement savings.

Mr Tinubu said pension assets could support infrastructure, productive enterprises and economic development, but insisted that such investments must prioritise the financial security of contributors.

The President, represented by the Secretary to the Government of the Federation (SGF), George Akume, stated this on Thursday at the leadership summit of the inaugural National Pension Week in Abuja.

“National development must never come at the expense of pensioners. Every investment must stand on its own merits, pass rigorous tests of risk and return, and serve the best interests of contributors,” the President said.

Mr Tinubu said Nigeria’s pension assets could help finance infrastructure and productive investments under his administration’s Renewed Hope Agenda, provided the funds were managed responsibly.

He explained that a strong pension system should not only provide income during retirement but also mobilise long-term domestic savings, strengthen financial markets and support sustainable economic growth.

However, he stressed that the responsibility to protect contributors’ savings must remain the primary consideration in every investment decision.

The President also cautioned pension fund administrators and custodians against pursuing higher investment returns without adequately considering the risks involved.

He said retirement savings must be managed with transparency, accountability and discipline to ensure that contributors receive meaningful benefits when they retire.

He stated, “Preservation without growth is a slow erosion.”

He warned that retirement savings that fail to keep pace with inflation could lose their purchasing power, even where the original contributions remain intact.

Mr Tinubu urged pension operators to improve their investment expertise, diversify responsibly, reduce costs and strengthen accountability.

He also said their performance should be assessed by the benefits contributors eventually receive rather than the total value of assets under management.

Safeguards for pension investments
Nigeria’s pension investment framework allows pension fund administrators to invest retirement savings in approved financial instruments, including government securities, corporate bonds, equities and qualifying infrastructure funds.

However, the investments are subject to regulatory requirements intended to protect contributors’ savings and limit exposure to excessive risks.

Under the Pension Reform Act 2014, pension fund administrators are responsible for investing pension assets, while the National Pension Commission (PenCom) regulates and supervises their activities.

PenCom’s revised investment regulations, issued in September 2025, provide rules governing investment limits, eligible instruments and risk management.

The commission subsequently amended aspects of the regulations in February 2026, citing challenges involving investment limits and the limited availability of qualifying alternative investment instruments.

The framework permits investment in infrastructure through approved instruments, subject to applicable conditions and safeguards.

Against this background, Mr Tinubu’s remarks reinforced the need to balance the government’s development ambitions with its obligation to protect workers’ retirement savings.

He also directed PenCom to remain a firm and fair regulator and enforce pension laws without fear or favour.

The President said the success of Nigeria’s pension reforms should ultimately be measured by the security they provide to retirees.

He added that the pension industry must deliver stronger investment performance, improved compliance, clearer disclosures and more dignified retirement outcomes.