Tinubu orders pension reforms for low income retirees

Joy Agwunobi

President Bola Ahmed Tinubu has ordered the immediate rollout of free healthcare for low-income retirees under the Contributory Pension Scheme (CPS), describing it as a vital component of social protection and dignity in retirement.

He also directed the prompt implementation of long-overdue pension increases and a minimum pension guarantee, which would provide a safety net for the most vulnerable pensioners under the Contributory Pension Scheme.

According to a statement issued by Bayo Onanuga, special adviser to the president on information and strategy, the President gave these directives after receiving a briefing from Omolola Oloworaran, the director-general of the National Pension Commission (PenCom).

President Tinubu further mandated the PenCom DG to urgently resolve the longstanding police pension issue, emphasising that members of the police force who serve and protect the nation deserve to retire with dignity and peace of mind.

According to the statement, the DG also briefed the President on ongoing efforts to ensure the value preservation of pension fund assets, especially in the face of inflation and macroeconomic pressures.

She plans to introduce foreign currency contributions to enable Nigerians in the diaspora to participate in the pension system.

The President strongly supported the reforms, reaffirming his administration’s commitment to inclusive growth and protection for ordinary Nigerians.

The statement further added that during the briefing, the PenCom DG updated the President on a suite of transformative pension initiatives to enhance retiree welfare and expand the Pension Scheme’s reach.

This development comes on the heels of President Tinubu’s recent assent to the Insurance Reform Act and highlights the urgent need to address the plight of low-income retirees under the Contributory Pension Scheme (CPS). Many of these retirees are former workers from the informal economy or lower-grade roles in both the public and private sectors, whose modest pension contributions during their active years have translated into limited savings in retirement.

Consequently, a significant number of them face financial hardship, struggling to afford basic necessities such as healthcare, housing, and food due to inadequate monthly pension payouts.