The National Pension Commission (PenCom) has announced that free health insurance for pensioners will commence later this year, beginning with retirees in lower-income categories.
The Director-General of PenCom, Omolola Oloworaran, revealed this during a workshop on the operations of the Contributory Pension Scheme (CPS) held in Abuja on Wednesday. She was represented by the Director, Contribution and Bond Redemption Department, Usman Musa.
Oloworaran explained that the initiative was introduced to improve retirees’ welfare and ensure they live with dignity and security beyond their monthly stipends.
“Free health insurance for retirees will begin later this year, starting with pensioners in lower-income categories, ensuring dignity and security beyond financial pensions,” she said.
She described the programme as part of PenCom’s broader “Pension Revolution 2.0” reforms, which seek to strengthen social protection for pensioners in line with President Bola Tinubu’s administration’s policy direction.
According to her, the Contributory Pension Scheme has transformed Nigeria’s pension system from an era of unpaid entitlements and uncertainty to one defined by transparency, sustainability, and inclusiveness.
Over 10 million Nigerians are now covered under the CPS, with pension assets exceeding ₦25 trillion, she disclosed. More than 844,000 retirees across the public and private sectors currently receive benefits — comprising 552,000 monthly pensioners and 291,735 retirees who have collected lump-sum payments.
Among the recent reforms, Oloworaran mentioned “Pension Boost 1.0,” which raised monthly pensions for 241,000 retirees from ₦12.16 billion to ₦14.84 billion effective June 2025, as well as the zero waiting time policy for pension payments introduced in July 2025.
She further revealed that the Federal Government had approved ₦758 billion in bonds to settle outstanding pension liabilities, including arrears of pension increases dating back to 2007.
Oloworaran also confirmed that PenCom, in collaboration with the Office of the Head of the Civil Service of the Federation, is working to reintroduce gratuity payments for federal workers under the Contributory Pension Scheme, as provided in Section 4(4) of the Pension Reform Act, 2014.
She emphasised that reforming the pension system remains a continuous process and called on all stakeholders to stay committed to sustaining the scheme’s success.
The PenCom boss reaffirmed the commission’s commitment to safeguarding contributors’ funds, strengthening governance among pension fund administrators, and enhancing retirees’ welfare through policies that guarantee both financial and social security in old age.
Also speaking, the Chairman of the National Salaries, Incomes and Wages Commission (NSIWC), Ekpo Nta, represented by Akin Abe, said pensions remain a cornerstone of financial stability and national productivity.
He explained that pensions provide retirees with a steady income after years of service, recalling that Nigeria’s first pension law — the 1951 Pension Ordinance — catered to civil servants until it was replaced by the Contributory Pension Scheme under the 2004 Pension Reform Act, later amended in 2014.
Nta noted that Section 173(3) of the 1999 Constitution mandates pension reviews every five years or alongside any federal salary adjustment, whichever comes first.
He praised the Tinubu administration for implementing major pension reforms, including prompt payment of entitlements and improved welfare for retirees.
“The ongoing collaboration between PenCom and the NSIWC will further strengthen Nigeria’s pension system and ensure retirees receive their benefits without delay,” Nta added.
In August 2025, it was reported that President Tinubu had directed the immediate implementation of overdue pension increases and the rollout of free healthcare for low-income retirees under the Contributory Pension Scheme.
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