Elumelu supports Nigeria's new N52,500 pension plan and praises healthcare for retirees

Nigeria has started to pay a minimum pension of N52,500 a month to retirees in the Contributory Pension Scheme. This scheme helps workers save for retirement through individual accounts.

The idea has been in Nigeria's pension law since 2004 but was never put into action.

President Bola Tinubu also introduced PenCare, a free healthcare plan for low-income retirees funded by the pension industry. Billionaire Tony Elumelu called both programs "investments in human dignity."

The Minimum Pension Guarantee takes effect right away and will be managed 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," Elumelu said at the launch of the Presidential Pension Security Initiatives.

He praised the pension industry for funding PenCare. He called it "a powerful demonstration of what responsible institutions can achieve when they put people first."

Elumelu also mentioned, "the private sector stands ready to support policies and partnerships that strengthen our institutions."

PenCom Director-General Omolola Oloworaran shared that 173,209 retirees currently earn less than N52,500 and will have their pensions increased to that amount. Some have been getting just over N20,000 a month.

The guarantee comes from a N400 billion Pension Protection Fund. Both the federal government and the pension industry have made contributions to this fund. State governments must also contribute before their retirees can benefit.

"If people are not contributing, we’ll run out of funds," Oloworaran said. She explained that the N52,500 figure was not random. An actuary validated it, and it will be reviewed. She added, "And it is funded."

Oloworaran also called on private companies to contribute.

PenCare has raised over N7 billion, and health insurance premiums have been paid for nearly 30,000 retirees. During a pilot before the official launch, between 25,000 and 30,000 health access cards were issued.

Retirees without a card can ask their pension fund administrator (PFA) for one. This is the company that manages their retirement account.

In the short term, the guarantee is affordable. If every eligible retiree currently receives about N20,000, the top-ups would cost around N67.6 billion a year, according to MoneyCentral calculations.

Elumelu's support gives the scheme a boost from the private sector. He framed the programs under his "Africapitalism" view, saying 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.