Nigeria launched a pension guarantee on Nov. 10 that sets a monthly floor of ₦52,500 for 173,209 eligible retirees, while a separate health program has paid premiums for nearly 30,000 low-income pensioners.
The guarantee applies to retirees under the Contributory Pension Scheme (CPS). National Pension Commission (PenCom) Director-General Omolola Oloworaran said an actuary had validated the amount and that it could be reviewed. She said 34% of eligible retirees came from the federal public service, 12% from state services and 54% from the private sector.
Oloworaran said the Pension Protection Fund held more than ₦400 billion. The Pension Reform Act of 2014 says the fund is intended to finance the minimum pension, among other protections. Its statutory funding sources include an annual federal subvention equal to 1% of the total monthly wage bill for federal public-service employees, levies on PenCom and licensed pension operators, and investment income.
The guaranteed-pension provision first appeared in the Pension Reform Act of 2004 and was retained in the 2014 law. The act gives PenCom responsibility for setting the contribution period and eligibility rules.
PenCare is described as pension-industry-funded and provides essential health care at no cost to low-income pensioners. Oloworaran said more than ₦7 billion had been committed to the program and premiums had been paid for nearly 30,000 retirees.
President Bola Ahmed Tinubu was represented at the launch by Senate President Godswill Akpabio. Punch reported that Tinubu urged Nigerians to judge his record in the election, quoting him as saying, “Please judge me by my record in this election.” Oloworaran said the pension floor was subject to review but gave no date for a reassessment.
