States urged to fund pension protection scheme to qualify for minimum pension

The Director-General of Nigeria's National Pension Commission (PenCom), Ms. Omolola Bridget Oloworaran, told state governments on Tuesday that they must contribute to the Pension Protection Fund before they can become eligible for the minimum pension guarantee. She made the call at the official launch of the Minimum Pension Guarantee Scheme and the unveiling of PenCare, a pension industry-funded healthcare initiative designed to provide low-income retirees with access to essential medical services free of charge. The event took place at the Old Banquet Hall, Presidential Villa, Abuja. Ms. Oloworaran said approximately 170,000 retirees are expected to receive the minimum pension of ₦52,500, including those who were previously receiving less than that amount. 'Every eligible retiree who earns below ₦52,500 will be uplifted to ₜ52,500,' she stated. 'So, of course, there is no discrimination if you are within the Contributory Pension Scheme (CPS). However, there is an eligibility criterion at the same level. We are making it a requirement that states must contribute to the Pension Protection Fund before they can be eligible for the minimum pension.' She explained that the fund needs to remain sustainable, warning that if states do not contribute, the scheme could fail years later. 'We are working on modalities for the states to start contributing,' she said. 'But, as of now, it does not apply only to federal workers. Even private-sector workers are receiving these minimum pensions.' She noted that 54 per cent of retirees earning below the minimum pension work in the private sector, with 65 per cent or more of private-sector retirees earning less than ₦52,500. When asked about states still paying retirees as little as ₦5,000 monthly, she described it as unacceptable and said the Commission was working with states to ensure proper retirement benefits are paid. 'Frankly, that is a big shame. What we have done is that we have started working with the states to ensure that they pay retirement benefits to their retirees and also put a plan in place to review pensionable inflation,' she said. 'I mean, receiving ₦5,000 is unacceptable. I do hope it is not true. I will ask my team to confirm. But ultimately, what we are trying to do is get all the states into the scheme. Once you get into the scheme and start contributing to the Pension Protection Fund, the fund can protect the retirees of those who participate.' She also expressed joy that many Nigerians, especially retirees, had already started receiving the minimum pension. On the PenCare healthcare initiative, she said the Commission had given healthcare cards to some people to test the system before the official launch. 'Because, before you pilot something, you want to test it with a group of people to make sure that it is working as intended. So, it has been rolled out, and Nigerians can now go into a hospital and enjoy free healthcare,' she said. 'So, as I said, what we did today was symbolic. But from today, anybody who does not have their card can go to their PFA and request one.' When asked whether the timing of the launch was influenced by forthcoming elections, she said she did not involve herself in politics. 'Is there ever a bad time to do good for ordinary Nigerians, to put a smile on people's faces?' she rhetorically asked. 'And you know, I do not get involved in politics. I never talk about politicians or anything political. We just do our work.' She said PenCom was only a regulator and that its actions were not geared toward influencing voters. 'But guess what? If my work makes the President look good, then it means I am doing what he hired me to do,' she added. She also noted that the Commission had paid a ₦32,000 consequential increase the previous year when no elections were held, reinforcing her position that the timing was coincidental rather than politically motivated.