Nigeria: PenCom to Roll Out Minimum Pension Guarantee Under Pension Revolution 2.0

The National Pension Commission (PenCom) has unveiled plans to introduce a Minimum Pension Guarantee (MPG) as part of its Pension Revolution 2.0, a sweeping reform agenda designed to strengthen Nigeria’s pension system and safeguard retirees’ welfare.

In a statement issued on Monday, PenCom said the initiative builds on two decades of the Contributory Pension Scheme (CPS) and will set a new benchmark for dignity in retirement, inclusivity for Nigerian workers, and resilience for the broader economy.

According to the Director-General of PenCom, Omolola Oloworaran, Pension Revolution 2.0 aligns with President Bola Tinubu’s directive that the pension system must guarantee dignity in retirement, broaden access across the workforce, and mobilize long-term savings to support national development.

“Beginning this week, the Commission will release new regulatory guidelines daily, each setting higher standards across critical areas, including investment and risk management, governance, compliance, service delivery, and financial inclusion,” Oloworaran said.

As part of the reform drive, PenCom will pilot health insurance coverage for retirees and activate the Minimum Pension Guarantee within the next three months, ensuring that pensioners maintain a decent standard of living.

The DG further explained that the reforms are structured to:

• Provide a minimum pension floor and health coverage to protect retirees’ dignity.

• Enhance investment performance while safeguarding contributors’ funds.

• Expand pension access, particularly to workers in the informal economy.

• Leverage technology and innovation to improve service delivery.

• Unlock pension assets as a sustainable source of financing for national development.

Alongside these reforms, PenCom issued revised corporate governance guidelines for licensed pension fund operators, strengthening oversight in areas such as board responsibilities, control functions, shareholder relations, ethics, sustainability, and transparency.

A second guideline on appointments to board and senior management positions was also released. Under the new rules, pension fund operators must notify PenCom of an anticipated board or executive vacancy at least two months in advance, or within 48 hours in the case of a sudden exit.

The guidelines further raise competency requirements for key leadership roles. For example, nominees for Head of Investment must have at least 10 years of experience in investment or portfolio management, with a proven track record of managing portfolios valued between ₦50 billion and ₦100 billion. Similarly, nominees for Head of Benefits Administration must demonstrate significant experience in managing enterprises with assets of at least ₦1 billion, or senior-level public policy expertise in a recognized institution for retired public officers.

With these measures, PenCom is positioning Nigeria’s pension industry for a new phase of sustainability, inclusivity, and resilience, ensuring the system delivers both financial security for retirees and long-term capital for national growth.