Tinubu cautions pension managers against risky investments

President Bola Tinubu cautioned pension fund administrators and custodians against taking unnecessary risks with workers' retirement savings, emphasizing that higher returns should not come at the expense of financial security for contributors. During the National Pension Conference and Awards at Transcorp Hilton, Abuja, Tinubu stressed the importance of transparency, accountability, and strict risk-management standards in managing pension assets.

He warned that national development should never jeopardize the interests of pensioners, and investment decisions must prioritize the best interests of workers whose contributions fund the pensions. Tinubu highlighted that inflation had eroded the purchasing power of retirement savings and urged pension operators to generate sustainable returns without compromising capital preservation.

He called for strengthened investment expertise, responsible portfolio diversification, cost reduction, and improved accountability. The President also directed employers to remit pension contributions promptly and charged the Pension Commission to enforce regulations diligently. PenCom reported a significant increase in Nigeria's pension assets, from N20.79tn in July 2024 to N31.8tn in August 2026, representing a 53% growth.

However, the director-general expressed concern that the expansion of pension assets had not led to adequate retirement income for many contributors, particularly those in the private sector. She urged private employers to contribute to the Pension Protection Fund and challenged pension operators to generate returns above inflation.

The commission has set targets to establish three million additional funded retirement accounts within a year, focusing on currently excluded workers. Tinubu also launched the Pension Security Initiative, which includes the PenCare healthcare programme and a minimum pension guarantee.