Nigeria makes minimum pension conditional on state contributions
By the AFREEQUE newsroom, based on Business Day Nigeria
Nigeria’s National Pension Commission is requiring states to contribute to the 400 billion naira Pension Protection Fund before their retirees can receive the guaranteed minimum pension of 52,500 naira per month. Its director general, Omolola Oloworaran, announced the condition during the launch of the Presidential Initiative on Pension Security in Abuja, according to Business Day.
Nigeria’s National Pension Commission (PenCom) is requiring state governments to contribute to the 400 billion naira Pension Protection Fund before their retirees can benefit from the guaranteed minimum pension of 52,500 naira per month. PenCom Director General Omolola Oloworaran announced the condition on Tuesday 10 November in Abuja, during the launch of the Presidential Initiative on Pension Security.
The contribution is intended to preserve funding for the scheme and prevent the fund from being depleted as the number of beneficiaries increases. Omolola Oloworaran explained that the participation arrangements would be defined at state level. She warned that a mechanism without regular contributions could cease to function after a few years.
The 52,500 naira threshold was established on the basis of an actuarial assessment and may be subject to periodic revisions, according to the PenCom director general. Eligible retirees under the contributory scheme whose pension is below this amount must receive a supplement to reach the guaranteed minimum. Funding is provided by the government and the pensions industry.
