Omolola Oloworaran, the Director-General of the National Pension Commission (PenCom), has revealed that President Bola Ahmed Tinubu granted approval for nearly N1 trillion to settle outstanding pension liabilities that have built up over approximately 20 years.
She disclosed this on Wednesday in Abuja at the maiden National Pension Week, with the theme, “Pension for All: Building a Secure Future Together.”
Speaking to retirees, senior citizens and other stakeholders, Oloworaran said the present administration had prioritised the dignity and welfare of retirees.
Oloworaran said the administration had also introduced two major pension increases under Pension Boost 1.0 and a N32,000 consequential adjustment across the board.
She described the adjustment as the highest consequential increase at the federal level.
The PenCom boss added that the commission would launch two welfare initiatives in November: the PennCare Health Initiative for low-income retirees and the Minimum Pension Guarantee.
According to her, PennCare will provide health insurance coverage for retirees, while a pilot programme involving 30,000 retirees is already ongoing.
“Some people were earning N20,000 as pension. That is a grave anomaly that should never happen,” she said.
Oloworaran stressed that retirement security should go beyond the payment of pension benefits, adding that Nigerians who served the country for 30 to 35 years should not be left to bear medical expenses alone.
What You Should Know
This decision means the Federal Government is moving to settle long-standing debts owed to senior citizens who have been waiting for their entitlements for up to two decades. It represents a significant step in addressing the financial struggles of retirees who served the country for most of their lives.
- Positive Impact: Retirees will receive their long-awaited arrears, and a new ‘PennCare’ initiative will provide health insurance for low-income senior citizens. There is also a N32,000 upward adjustment to monthly pension payments to help cope with the cost of living.
- Potential Concerns: The success of this move depends on the efficiency of PenCom in ensuring the money reaches the actual beneficiaries without administrative delays or bureaucratic bottlenecks.
