By David Akinmola
The Federal Government is considering a major expansion of free healthcare coverage to about 152,000 retirees under the Retiree Life Annuity (RLA) scheme as regulator move to strengthen social protection for pensioners under the Contributory Pension Scheme (CPS).
The initiative, being driven by the National Pension Commission (PenCom) is expected to widen access to healthcare for thousands of retiree currently excluded from the PenCom programme, a healthcare intervention designed for low-income pensioners.
The planned expansion comes as the pension insustry begins implementation of free health insurance coverage for 30,000 retirees under the Programme Withrawal (PW) arrangement, with broader plans underway to eventually cover all retirees captured under the CPS.
Speaking at the Inspenoline Retirement Summit 2026 in Lagos, at the weekend, Director-General of PenCom, Omolola Oloworaran, represented by the commission’s Head of Corporate Communications, Ibrahim Buwai, revealed that discussions would commence with the National Insurance Commission (NAICOM) and Insurance operators to extend the PenCom programme to annuitants.
The development signals a possible policy shift in Nigeria’s pension and healthcare system as regulators seek to cushion the impact of rising healthcare costs on retirees and improve posts retirement welfare.
According to the commission, the current PenCom arrangement is funded by pension fund operators and the commission itself, enabling vulnerable retirees under PW structure to access free healthcare services through accredited Health Maintenance Organisations (HMOs) and hospitals nationwide.
However, retirees under the Retiree Life Annuity scheme have repeatedly called for inclusion in the programme, arguing that access to healthcare support should not depend on the retirement option selected under the CPS.
Buwai said the commission remained commiited to deepening retirement protection and improving the quality of life for pensioners through what it described as Pension Revolution 2.0.
He explained that the reform agenda was focused on expansion participation, improving service delivery and strengthening financial security for retirees across both the formal and informal sectors.
Part of the strategy, according tii him, includes recently rebranded micro pension plan targeted at entrepreneurs and informal sector operators, with Nigerians aged 18 years and above encouraged to enroll.
Providing the insurance industry’s perspective, Head of Corporate Affairs at NAICOM, Abba Hall, said the commission welcome ongoing collaboration between pension regulators and insurance operators aimed at improving social welfare and healthcare access for retirees.
Hall noted that annuity business remains a critical component of Nigeria’s pension ecosystem, adding that extending healthcare coverage to annuitants would further strengthen confidence in retirement products and improve financial security for elderly Nigerians.
According to him, insurance companies are expected to play an important role in supporting sustainable healthcare financing for retirees through strategic partnerships and risk management structures.
He added that NAICOM remains committed to policies that encourage inclusive insurance and social protection mechanisms capable of supporting vulnerable groups, particularly retirees facing rising healthcare expenses.
Industry analysts say the proposed expansion of PenCare could significantly reduce healthcare pressures on pensioners while deepening collaboration between the pension and insurance sectors.re, launched as a Corporate Social Responsibility initiative by PenCom in partnership with pension fund operators, currently provides eligible low-income retirees with free healthcare services through participating HMOs and healthcare provides nationwide.
Stakeholders believe that extending the programme to annuitants could further improve confidence in the Contributory Pension Scheme and strengthen retirement welfare protections across the country.
