Tinubu Orders Immediate 20% Pension Increase, Free Healthcare for Retirees

In a significant move aimed at improving the welfare of Nigeria’s aging population, President Bola Ahmed Tinubu has directed the National Pension Commission (PenCom) and the Pension Transitional Arrangement Directorate (PTAD) to immediately implement a 20% increase in pensions for Federal Government retirees under Ministries, Departments, and Agencies (MDAs).

The president also ordered the rollout of a free healthcare scheme targeted specifically at low-income pensioners, as part of a broader strategy to strengthen social protection and dignity in retirement.

The directive, announced on Wednesday through a statement by presidential spokesperson Bayo Onanuga, comes amid rising economic hardship and long-standing complaints by retirees across the country about poor pension payments and limited access to basic healthcare.

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Boosting Retiree Welfare Amid Economic Strain

With the country still grappling with the fallout from fuel subsidy removal and currency devaluation, retirees—arguably among Nigeria’s most economically vulnerable—have long demanded relief. President Tinubu’s new directive aims to bridge the gap by improving both financial and healthcare access for pensioners.

The president’s statement was clear: the new 20% pension increase should be applied immediately to all beneficiaries under the Defined Benefit Scheme (DBS), with a minimum pension now pegged at N32,000. PTAD has already disbursed approximately N8.6 billion in arrears to kickstart this increment.

Simultaneously, a new healthcare package will be developed and coordinated under the Contributory Pension Scheme (CPS), with a focus on low-income retirees who often cannot afford essential medical treatment.

Praise From Retirees and Stakeholders

The policy has received widespread praise from retirees and pension advocates across the country. Mr. Ifeanyichukwu Obiorah, a retiree from the Ministry of Works and Housing, called it a long-awaited lifeline for the elderly.

“Our pension is too small to cover food and housing. Healthcare has been neglected for years. If this order is truly implemented, it will change lives,” he said, noting that most retirees struggle with chronic conditions like hypertension and diabetes.

Similarly, Omisande Adeyemo, Chairman of the Nigeria Union of Pensioners (NUP), Lagos State chapter, lauded the government’s commitment to retirees, recalling the earlier N758 billion bond raised by the Debt Management Office to clear pension backlogs.

“This is another strong step by the Federal Government to show it values its senior citizens,” Adeyemo stated.

Skepticism Over Implementation

Despite the fanfare, not everyone is convinced of a smooth rollout. Peter Onoh, a retired teacher, expressed skepticism about implementation at the state level, noting that many governors have historically ignored federal directives on pensions.

“For this to work, the president must hold state governments accountable. Too many retirees have died without healthcare or even their basic pensions,” he said.

Ismail Aniemu, a retired customs officer, welcomed the plan but echoed concerns about targeting and corruption. “This must truly reach low-income retirees, not be hijacked by middlemen or officials. If done right, it will relieve immense suffering,” he urged.

Legal Experts Urge Stronger Reform

While welcoming the initiative, human rights lawyer Femi Aborishade argued that the reform does not go far enough. He pointed to Section 16(2d) of the Nigerian Constitution, which mandates government-provided old-age care and pensions, and Sections 173(3) and 210(3), which require a five-year review of pensions—something yet to be fully honored.

“The president and vice president enjoy lifelong pensions without contributing. This should be extended to all Nigerian workers,” Aborishade said. “A 20% increase is commendable but not enough. The contributory pension scheme should be re-evaluated.”

Presidency Pushes PenCom on Police Pension Reform

During a recent briefing with PenCom Director-General Ms. Omolola Oloworaran, President Tinubu specifically directed the commission to urgently resolve the longstanding grievances surrounding the Police Pension Scheme. Retired police officers had, just weeks earlier, staged a protest in Abuja over unpaid benefits and poor welfare.

The president emphasized that members of the police force, who risk their lives for national security, must be allowed to retire with dignity and peace of mind.

In response, Oloworaran updated the president on PenCom’s efforts to address inflationary pressure on pension assets, expand the scheme’s reach, and introduce foreign currency contributions that would allow Nigerians in the diaspora to join the pension system.

Tinubu welcomed the reforms, reaffirming his administration’s commitment to inclusive economic growth and social equity.

A Step Toward Dignified Retirement

While challenges remain in ensuring the full and equitable implementation of these directives, President Tinubu’s latest orders mark a significant shift in pension policy. The dual focus on increasing pension income and expanding healthcare access addresses two of the most urgent needs facing Nigeria’s growing retiree population.

For many pensioners, it is a long-overdue recognition of their years of service—and a glimmer of hope for a more dignified retirement.