TINUBU CAUTIONS PENSION MANAGERS AGAINST RISKY INVESTMENTS

President Bola Tinubu has warned pension managers against taking reckless investment risks with workers’ retirement savings, saying contributors’ financial security must come first.

Speaking at the National Pension Conference and Awards in Abuja on Thursday, Tinubu said pension funds could support infrastructure and economic growth, but such investments must meet strict standards.

The President, represented by Secretary to the Government of the Federation George Akume, stressed that development projects should never put retirees’ welfare at risk.

“Every investment must stand on its own merits, pass rigorous tests of risk and return, and serve the best interests of contributors,” he said.

Tinubu also urged pension operators to strengthen their investment expertise, diversify responsibly, reduce operating costs and improve transparency.

He said inflation was eroding the value of retirement savings, making sustainable returns essential. However, he warned that seeking higher returns must not become an excuse for excessive risk-taking.

The President directed employers to remit pension deductions promptly, describing the withholding of workers’ contributions as a breach of trust. He also asked the National Pension Commission to enforce regulations fairly and firmly.

Tinubu disclosed that his administration had approved ₦738 billion to address outstanding pension obligations and strengthen the Pension Protection Fund.

PenCom Raises Concern Over Low Retirement Income

PenCom Director-General Omolola Oloworaran said pension assets grew from ₦20.79 trillion in July 2024 to ₦31.8 trillion in August 2026—an increase of about 53 per cent.

Despite that growth, she said many retirees, particularly those from the private sector, continued to receive inadequate pensions.

According to her, almost 70 per cent of private-sector retirees receive pensions below the national minimum wage. She attributed part of the problem to employers calculating contributions using limited portions of workers’ earnings.

“Our private sector workers are retiring into poverty. This must change,” she said.

Oloworaran announced plans to establish three million additional funded, active retirement savings accounts within a year to reach more workers outside formal pension arrangements.

She also said the Pension Security Initiative, incorporating the PenCare healthcare programme and minimum pension guarantee, was scheduled for launch on November 10.

Pension fund administrators and custodians were given until June 30, 2027, to complete their recapitalisation.

Meanwhile, House of Representatives Committee on Pensions Chairman Jallo Mohammed said lawmakers were reviewing pension legislation to strengthen administration, regulatory compliance and protection for contributors.