Chairman of Heirs Holdings and Transcorp, Tony Elumelu, has thrown his support behind the Federal Government’s decision to introduce a guaranteed minimum monthly pension of ₦52,500 for eligible retirees, describing it as an important step towards improving their financial security and access to healthcare.
Speaking at the launch of the Presidential Pension Security Initiatives in Abuja, Elumelu said the National Minimum Pension Guarantee and the PenCare Retiree Healthcare Initiative address two major concerns facing people after retirement: the ability to afford medical care and the assurance of a stable income.
He described the two programmes as investments in human dignity, adding that the private sector was ready to support policies and partnerships aimed at strengthening public institutions and improving the welfare of Nigerians.
Elumelu also commended the pension industry for financing PenCare, which will provide free healthcare to low-income retirees. He said the initiative demonstrated what responsible institutions could achieve when the needs of ordinary people were placed at the centre of their decisions.
The Federal Government has now activated the N52,500 minimum pension provision for retirees under the Contributory Pension Scheme, which operates through individual retirement savings accounts. Although the provision has been part of Nigeria’s pension law since 2004, it had not previously been implemented.
President Bola Tinubu launched the two initiatives as part of efforts to strengthen retirement security and provide additional support for pensioners. The minimum pension guarantee takes effect immediately and will be administered by the National Pension Commission.
PenCom Director-General, Omolola Oloworaran, disclosed that 173,209 retirees currently receive monthly pensions below ₦52,500. Their payments will be increased to the new minimum level, with some beneficiaries previously receiving only slightly above ₦20,000 monthly.
According to Oloworaran, the guarantee will be financed through the ₦400 billion Pension Protection Fund, supported by contributions from the Federal Government and the pension industry. State governments will also be required to contribute before their retirees can qualify for the benefit.
She warned that the sustainability of the programme would depend on regular contributions, stressing that the fund could eventually be depleted if the required payments were not made.
Oloworaran also explained that the ₦52,500 minimum was determined through actuarial assessment rather than an arbitrary decision. She said the figure had been properly validated, was fully funded and could be reviewed when necessary.
