Elumelu backs Nigeria’s N52,500 pension floor, praises industry-funded retiree healthcare

Nigeria has started paying a guaranteed minimum pension of N52,500 a month to retirees in the Contributory Pension Scheme, the system of individual retirement accounts for workers.

The provision has been in the country’s pension law since 2004 but was never used.

President Bola Tinubu also launched PenCare, a free healthcare plan for low-income retirees that the pension industry pays for. Billionaire Tony Elumelu called the two programmes “investments in human dignity.”

The Minimum Pension Guarantee takes effect immediately and will be run by the National Pension Commission (PenCom).

“The two initiatives being launched today — the PenCare Retiree Healthcare Initiative and the National Minimum Pension Guarantee — address two fundamental concerns of every retiree: access to healthcare and security of income,” said Elumelu, chairman of Heirs Holdings and Transcorp, in his remarks at the Presidential Pension Security Initiatives Launch.

He particularly praised the pension industry for funding PenCare, calling it “a powerful demonstration of what responsible institutions can achieve when they put people first.”

He added that “the private sector stands ready to support policies and partnerships that strengthen our institutions.”

PenCom Director-General Omolola Oloworaran said 173,209 retirees currently receive less than N52,500 and will be raised to that level. Some had been receiving just over N20,000 a month.

The guarantee is paid from a N400 billion Pension Protection Fund, to which the federal government and the pension industry have contributed. State governments must also pay in before their retirees can benefit.

“If people are not contributing, we’ll run out of funds,” Oloworaran said. She said the N52,500 figure “was not plucked from the air. It has been validated by an actuary and it is subject to review. And it is funded.”

She also asked private companies to contribute.

PenCare has raised more than N7 billion, and health insurance premiums have been paid for almost 30,000 retirees. Between 25,000 and 30,000 health access cards were issued in a pilot before the launch.

Retirees without a card can request one from their pension fund administrator (PFA), the company that manages their retirement account.

The guarantee is affordable in the short term. If every eligible retiree is currently paid about N20,000, the top-ups would cost about N67.6 billion a year, on MoneyCentral calculations.Open Bank Account

Elumelu’s backing gives the scheme private-sector support. He framed the programmes under his “Africapitalism” view that growth must “translate into improved lives.”

“I congratulate Mr President, the leadership of PenCom led by Omolara Oloworaran, and all stakeholders who have made today’s milestone possible,” Elumelu said.