President Bola Tinubu has warned pension fund administrators and custodians against exposing workers' retirement savings to risky investments, insisting that the pursuit of higher returns or national development must not compromise contributors' financial security. Speaking through the Secretary to the Government of the Federation, George Akume, at the National Pension Conference and Awards in Abuja on Thursday, Tinubu said pension assets must be managed with transparency, accountability and strict risk-management standards. He stressed that although pension savings could support infrastructure development and economic growth, investment decisions must prioritise the interests of workers whose contributions constitute the funds. "Every investment must stand on its own merits, pass rigorous tests of risk and return, and serve the best interests of contributors," he said.
The President also warned that inflation was weakening the purchasing power of retirement savings, making it necessary for operators to deliver sustainable returns without compromising capital preservation. He urged pension fund administrators and custodians to strengthen investment expertise, diversify portfolios responsibly, reduce operating costs and improve accountability. Tinubu directed employers to remit workers' pension contributions promptly, describing the withholding of deducted contributions as a breach of trust, and charged the Pension Commission to enforce regulations without fear or favour. His administration approved 738 billion naira to address outstanding pension obligations and strengthen the Pension Protection Fund, and announced the commencement of the minimum pension guarantee under the Pension Reform Act 2014.
According to Pension Commission Director-General Omolola Oloworaran, Nigeria's pension assets increased from 20.79 trillion naira in July 2024 to 31.8 trillion naira in August 2026, a rise of approximately 11.01 trillion naira or 53 per cent over the period. However, this expansion had not translated into adequate retirement income for many contributors. Oloworaran disclosed that almost 70 per cent of private sector employees earn below the national minimum wage in retirement, with more than 55 per cent of all retirees whose pensions fall below the minimum wage coming from the private sector. She attributed the problem partly to employers calculating pension contributions on limited portions of workers' earnings rather than their full remuneration, despite the statutory combined contribution of 18 per cent comprising 10 per cent from employers and 8 per cent from employees.
The PenCom boss urged private employers to contribute to the Pension Protection Fund alongside the Federal Government and pension industry, and challenged pension operators to generate returns above inflation. Oloworkaran disclosed that PenCom had secured industry commitments to establish three million additional funded, active retirement savings accounts within the next year, targeting workers currently excluded from formal pension arrangements. She directed pension fund administrators and custodians to complete recapitalisation by 30 June 2027. Highlighting recent improvements, Oloworkaran said some federal retirees had received pension increases ranging from 67 to 120 per cent, while certain Nigeria Social Insurance Trust Fund pensioners recorded increases exceeding 1,000 per cent. She added that retired professors could now receive pensions equivalent to their final salaries, while retirement benefits were being processed within 48 hours.
The House of Representatives Committee on Pensions Chairman, Jallo Mohammed, disclosed that the National Assembly was reviewing the Pension Reform Act 2014 and other pension-related legislation, with amendments including provisions concerning intelligence and military pensions progressing through legislative consideration. He pledged continued legislative oversight to improve pension administration, strengthen regulatory compliance and protect contributors' retirement savings.