Tinubu approves ₦758bn pension bond, pledges minimum pension guarantee

President Bola Tinubu has approved a ₦758 billion Federal Government Pension Bond to clear accrued pension rights that retirees have waited years to receive, and to strengthen the Pension Protection Fund.

The announcement was made on Thursday at the first National Pension Week Leadership Summit at the Transcorp Hilton in Abuja. The President was represented by the Secretary to the Government of the Federation, Senator George Akume, who read his address on the theme "Pensions for All: Building a Secure Future Together."

According to the President, the bond is meant to right an old wrong rather than balance the books. He described the approval as restitution to Nigerians who served the country and were left waiting for money they had already earned.

Minimum pension guarantee, PenCare

Tinubu also said his administration will implement the Minimum Pension Guarantee in the Pension Reform Act 2014 — a provision he said has never been honoured since the law was passed over a decade ago.

He announced a new programme, PenCare, which will start by giving low-income retirees access to basic healthcare. According to the President, the aim is to move the pension system beyond merely holding savings towards guaranteeing a basic level of dignity in old age.

He said a strong pension system also matters for the wider economy, as it pools long-term savings that can be invested in infrastructure and productive ventures under the Renewed Hope Agenda. But he warned that pension money must never be risked for national development at the expense of contributors.

"Preservation without growth is a slow erosion," he said, cautioning that savings which fail to keep pace with inflation quietly hurt the very people who saved them.

The President asked the National Pension Commission (PenCom) to enforce the law firmly and fairly, and told employers in both the public and private sectors to remit workers' contributions fully and on time. Deducting a worker's contribution and failing to remit it, he said, is "a breach of trust," not a small administrative slip.

He also challenged Pension Fund Administrators and custodians to cut costs, invest wisely and measure success by what contributors eventually receive, not by the size of the assets they manage.

Beyond formal employment, Tinubu directed an expansion of pension coverage to traders, artisans, farmers, transport workers and other self-employed Nigerians through the Personal Pension Plan and new distribution channels. "Pensions for All must mean exactly that: all," he said.

He called on state governments, organised labour and other stakeholders to help widen enrolment and speed up benefit payments, saying the summit should end with measurable commitments rather than speeches.

"Above all, no Nigerian who has served this nation will be forgotten in retirement," the President said. "Nigeria will keep faith with those who kept faith with Nigeria."

Akume was given an award for Excellence in Pension Sector Leadership and Support at the event.

What happens next

The sources did not give a timeline for when the bond will be issued or when retirees will start receiving their accrued rights. PenCom, employers and pension operators are expected to act on the President's directives on remittances, coverage and investment costs.