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The National Pension Commission has announced that free health insurance for pensioners will begin later this year, starting with retirees in lower-income categories. The Director-General of PenCom, Omolola Oloworaran, disclosed this during a workshop on the workings of the Contributory Pension Scheme held in Abuja on Wednesday. Oloworaran was represented by the Director, Contribution and Bond Redemption Department, Mr Usman Musa. She said the initiative was designed to enhance the welfare of retirees and ensure that they enjoy dignity and security beyond their monthly pensions. “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. According to her, the initiative is part of PenCom’s broader “Pension Revolution 2.0” reforms, which aim to strengthen social protection for pensioners and align with the policy direction of President Bola Tinubu’s administration. She stated that the Contributory Pension Scheme had significantly transformed Nigeria’s pension landscape, moving from “an era defined by unpaid entitlements and uncertainty to a new order anchored on transparency, sustainability, and inclusiveness.” Oloworaran revealed that more than 10 million Nigerians are currently covered under the scheme, with pension assets exceeding N25tn. She noted that over 844,000 retirees across the public and private sectors now receive regular pension benefits, comprising 552,000 monthly pensioners and 291,735 who have collected lump-sum payments. The PenCom boss also listed key reforms recently introduced by the commission, including Pension Boost 1.0, which increased monthly pensions for 241,000 retirees from N12.16bn to N14.84bn effective June 2025, and the introduction of zero waiting time for pension payments since July 2025. She further disclosed that the Federal Government had approved the issuance of N758bn in bonds to clear long-standing pension liabilities, including arrears of pension increases owed since 2007. Oloworaran also confirmed that PenCom, in collaboration with the Office of the Head of the Civil Service of the Federation, was 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 reforms in the pension system were a continuous journey, urging stakeholders to remain committed to the success of the scheme. Oloworaran reaffirmed PenCom’s commitment to protecting contributors, strengthening governance among pension fund operators and improving retirees’ welfare through policies that promote both financial and social security in old age. Also speaking at the event, the Chairman of the National Salaries, Incomes and Wages Commission, Mr Ekpo Nta, who was represented by the Head of Compensation, Akin Abe, said pension remained a vital pillar of financial security and national productivity. He explained that a pension provided “a regular income received by a person at retirement when he or she has stopped working because of age or other conditions, to cater for needs at old age.” Nta recalled that Nigeria’s first pension scheme was introduced in 1951 under the Pension Ordinance to cater for civil servants, describing it as “a defined benefit scheme” that lasted until 2004 when the Pension Reform Act introduced the Contributory Pension Scheme. He said the 2004 Act, later amended in 2014, established a fully funded, privately managed pension system based on individual accounts for both public and private sector employees, with the National Pension Commission serving as the regulator. He added that Section 173(3) of the 1999 Constitution provided that pensions must be reviewed every five years or together with any Federal Civil Service salary review, whichever came earlier. Nta commended the Tinubu administration for introducing far-reaching reforms in pension administration, including measures to ensure prompt payment of pensions and improved welfare for retirees. He expressed optimism that the ongoing collaboration between PenCom and the NSIWC would further strengthen Nigeria’s pension system, ensuring retirees receive their benefits without delay. Click to signup for FREE news updates, latest information and hottest gists everyday
