Tinubu’s Re-election Not Behind New Pension Scheme, Says PenCom

The National Pension Commission (PenCom) has dismissed suggestions that the introduction of the N52,500 minimum pension guarantee and free healthcare initiative for retirees was designed to boost President Bola Tinubu’s re-election chances ahead of the 2027 general elections.

The Director-General of PenCom, Omolola Oloworaran, said the commission’s pension reforms had been ongoing since July 2024 and were driven by its mandate to improve the welfare of retirees, rather than political considerations.

Oloworaran spoke on Tuesday in Abuja during a press conference at the State House following the launch of the minimum pension guarantee scheme and the PenCare healthcare initiative.

Responding to a question on whether the timing of the new initiatives was politically motivated, she challenged critics to explain why improving the welfare of ordinary Nigerians should be linked to an electoral calendar.

“Is there ever a time that is bad for doing good for ordinary Nigerians, for putting a smile on people’s faces? Every day you wake up, we try to see what we can do to improve the lives of ordinary Nigerians,” she said.

The PenCom boss cited previous pension increases implemented outside the election season as evidence that the commission’s interventions were not politically motivated.

“When we did the pension boost, there was no election. The N32,000 consequential increase last year, was election knocking on the door? No. Earlier this year, retirees of NSITF in January got over 1,000 per cent increase. Should we have waited until December?” she asked.

She further disclosed that the launch of the new initiatives had initially been scheduled for September but was postponed to October following consultations with stakeholders in the pension industry before Tuesday’s date was eventually settled upon.

According to her, the commission had originally planned the event to coincide with the President’s availability.

“This was supposed to be done in September when we were getting the president himself to attend, but then the industry said we needed to do some other things and we shifted. Everything we are doing, we are just doing our work. We don’t see elections. I don’t see competition. I’m just doing my work,” she said.

Oloworaran, however, acknowledged that the success of the commission’s reforms could reflect positively on the President’s administration, insisting that this would be a consequence of delivering on its mandate.

“If my work makes the president look good, then it means I’m doing what he has hired me to do,” she said.

She described suggestions that PenCom was implementing the reforms to serve electoral interests as unserious, adding that the commission enjoyed the President’s support in carrying out its responsibilities.

“Whoever is saying that we are working for elections, they are not serious people. We are very serious in PenCom. We are not working because of elections. We are working because that’s the mandate that we have, and the president is supporting us 1,000 per cent,” she added.

On the implementation of the minimum pension guarantee, the PenCom DG confirmed that all 173,209 eligible retirees earning below N52,500 monthly would immediately be uplifted to the new minimum threshold.

She said the arrangement would apply to eligible retirees under the Contributory Pension Scheme without discrimination across sectors.

“Every eligible retiree who earns below N52,500 will be uplifted to N52,500. There is no discrimination, if you are within the Contributory Pension Scheme, you will get it,” she stated.

Oloworaran also clarified that the N1.07tn legacy pension payments by state governments were being funded by the states themselves and not the Federal Government.

She attributed the improved capacity of states to meet their pension obligations to increased allocations from the Federation Account following the Federal Government’s removal of the petrol subsidy.

“The federal government is not funding it. The states that want to fund it themselves, the reason they now have money to fund it is because of the reforms of Mr President, which has now released more money to the states,” she said.

Addressing concerns over reports that some state pensioners receive as little as N5,000 monthly, the PenCom chief described such payments as unacceptable.

“Frankly, that’s a big shame. Receiving N5,000 is unacceptable,” she said.

She disclosed that the commission was engaging state governments to bring them into the Contributory Pension Scheme, contribute to the Pension Protection Fund and establish mechanisms for reviewing retirement benefits in line with inflation.

She explained that state governments would be required to contribute to the Pension Protection Fund before their retirees could qualify for the minimum pension guarantee.

On the PenCare healthcare initiative, Oloworaran revealed that its implementation had commenced ahead of Tuesday’s formal launch.

She said between 25,000 and 30,000 healthcare cards had already been distributed to low-income retirees as part of the pilot phase of the programme.