The National Pension Commission (PenCom) has made contributions to the N400 billion Pension Protection Fund a compulsory condition for state governments seeking to access the newly introduced N52,500 minimum monthly pension for their retirees.

PenCom Director-General, Omolola Oloworaran, disclosed this on Tuesday, November 10, 2026, during the launch of the Presidential Pension Security Initiative in Abuja.

She explained that although the Minimum Pension Guarantee Scheme covers eligible retirees across the federal public service, state governments and the private sector, states must contribute to the Pension Protection Fund before their retirees can benefit from the arrangement.

According to her, the requirement is intended to guarantee the sustainability of the scheme and prevent the fund from running out of resources as more pensioners are brought under its coverage.

“We are making it a requirement that states must contribute to the Pension Protection Fund before they can be eligible for minimum pension. So we work out that modality at state level because we all know the fund needs to be sustainable,” Oloworaran said.

She warned that allowing states to benefit without contributing could undermine the initiative in the coming years.

“If people are not contributing, we’ll run out of funds, and we can’t start a laudable initiative like this and then five or 10 years from now somebody says it has stopped working because people are not contributing,” she added.

President Bola Ahmed Tinubu formally activated the Minimum Pension Guarantee Scheme at the event, setting N52,500 as the minimum monthly pension for eligible retirees under the Contributory Pension Scheme (CPS).

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The initiative is expected to benefit 173,209 retirees whose monthly pension payments are below the approved threshold.

Oloworaran explained that every eligible retiree under the CPS currently receiving less than N52,500 would have their pension adjusted to meet the new minimum.

“Every eligible retiree who is below N52,500 will be augmented to N52,500. So, of course, like I said, everybody, there’s no discrimination. If you are within the CPS and you’ve been within the CPS, you will get it,” she stated.

She clarified that the contribution requirement specifically applies to state governments seeking to extend the benefit to their retirees. Eligible federal and private-sector pensioners are also covered by the initiative.

A breakdown of the expected beneficiaries showed that private-sector retirees account for 54 per cent of the 173,209 pensioners, while federal public service retirees represent 34 per cent and state government retirees account for 12 per cent.

The PenCom chief also disclosed that more than 65 per cent of private-sector retirees currently receive monthly pensions below the N52,500 threshold.

She consequently appealed to private-sector employers and other stakeholders to contribute to the Pension Protection Fund, stressing that its sustainability required broader financial participation.

Oloworaran said the N52,500 benchmark was determined through an actuarial assessment and would be reviewed periodically to reflect prevailing economic realities.

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The N400 billion Pension Protection Fund is being supported by the Federal Government and the pension industry to finance the minimum pension guarantee.

Beyond the pension increase, the Presidential Pension Security Initiative also includes PenCare, a healthcare programme designed to provide essential medical services to low-income retirees.

Oloworaran said the pension industry had committed more than N7 billion to the healthcare initiative, with insurance premiums already paid for nearly 30,000 pensioners.

She urged eligible retirees who had not received their healthcare access cards to approach their respective Pension Fund Administrators (PFAs) to obtain them.

The minimum pension guarantee represents the implementation of a provision first introduced under the Pension Reform Act 2004 and reaffirmed in the 2014 legislation.

The provision had remained largely unimplemented for more than two decades before the Federal Government announced its activation.

PenCom said it was also engaging state governments to improve pension administration, address outstanding retirement obligations and encourage regular reviews of pension payments.

The commission maintained that state participation and sustained contributions would be critical to ensuring that retirees receive the benefits promised under the new arrangement.

President Bola Ahmed Tinubu has asked the House of Representatives to approve the implementation of Nigeria’s N10.79 trillion external borrowing plan, equivalent to approximately $7.71 billion, to finance part of the Federal Government’s 2026 budget deficit.

The request, conveyed in a letter to the House and read during plenary on Wednesday, November 11, 2026, seeks legislative authorisation for the government to access the external loans already provided for in the 2026 Appropriation Act.

Tinubu explained that the proposed borrowing was necessary to finance critical projects and programmes captured in the national budget and sustain the administration’s economic reform agenda.

The President’s request represents the external component of the N29.218 trillion new borrowing approved under the 2026 budget, which also provides for N18.28 trillion in domestic borrowing.

According to the letter, the N10.79 trillion external borrowing is equivalent to $7.707 billion at the budget exchange rate of N1,400 to the dollar.

Tinubu said the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which require the terms and conditions of external loans to be presented to the National Assembly for approval.

He stated that the government intended to explore different financing options simultaneously, taking into consideration the cost of borrowing, the benefits to the country and the time required to access the funds.

The President, however, indicated that greater emphasis would be placed on Eurobond issuance, which he described as a relatively faster means of raising substantial funds at competitive costs.

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Other proposed sources of financing include concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund (IMF), bridge financing arrangements, loan syndications and direct borrowing from international financial institutions.

Tinubu explained that the final terms and conditions, including interest rates and repayment periods, would depend on prevailing conditions in the international financial markets when the loans were priced.

He assured lawmakers that the Federal Ministry of Finance and the Debt Management Office would work together to secure the most favourable borrowing conditions available to Nigeria.

The President said the funds would be deployed to finance critical capital projects and interventions in defence and security, transportation, agriculture, power, education and healthcare.

He also argued that the foreign currency proceeds would strengthen Nigeria’s external reserves and provide additional support for the stability of the naira.

According to him, the funds would be received by the Central Bank of Nigeria (CBN) on behalf of the Federal Government.

Tinubu consequently sought the House’s authorisation for the Minister of Finance and Coordinating Minister of the Economy, in collaboration with the DMO, to take all necessary steps to implement the proposed borrowing arrangements.

Following the presentation of the presidential letter, Speaker of the House of Representatives, Tajudeen Abbas, referred the request to the joint committees on Aids, Loans and Debt Management, and Finance for further legislative scrutiny.

Abbas clarified that the President was not seeking approval for an entirely fresh borrowing plan, explaining that the N10.79 trillion external borrowing had already been approved as part of the 2026 budget.

He said the latest request was intended to fulfil the statutory requirement for legislative approval of the terms and conditions governing external loans before the government could proceed with their implementation.

The Speaker also stressed that the request was separate from another presidential proposal for additional borrowing, which remained before the National Assembly for consideration on its own merits.

The development comes amid growing public concerns over Nigeria’s rising debt obligations and the Federal Government’s continued reliance on borrowing to finance budget deficits.

The 2026 budget provides for a deficit of approximately N31.55 trillion, with new borrowing of N29.218 trillion forming a major component of the government’s financing strategy.

The President had earlier withdrawn a previous external borrowing proposal of about $20.5 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan, replacing it with the revised $7.7 billion request.

The revised proposal was presented as a more clearly defined financing arrangement, allowing the government to explore different international funding sources rather than depend on a single borrowing channel.

However, concerns over the country’s debt burden have continued to generate debate, particularly over the capacity of government revenue to support rising debt servicing obligations.

The Federal Government has maintained that borrowing is necessary to address Nigeria’s infrastructure deficit, finance strategic development projects and stimulate economic growth.

The latest request will now undergo further consideration by the relevant House committees before any final legislative resolution on the proposed external financing is reached.