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Nigeria’s Pension Crisis Deepens As Federal, State Govt Owes Retirees Over ₦193 Billion

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Ikenna Ngere

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Nigeria's Pension Crisis Deepens As Federal, State Govt Owes Retirees Over ₦193 Billion

Pensioners across Nigeria are voicing frustration and planning protests as arrears owed by both the federal and state governments have now exceeded ₦193 billion.​


According to findings by The PUNCH, despite efforts by several states, including Zamfara, Benue, Kaduna, Kano, and Nasarawa, to address these backlogs, the Federal Government alone owes over ₦88 billion in accrued pension rights under the Contributory Pension Scheme (CPS).

Meanwhile, the pension burden on various state governments has surpassed ₦105 billion.

National Union of Pensioners (NUP) spokesperson, Bunmi Ogunkolade confirmed that the federal arrears, owed from March 2023 onwards, are still pending.

The accrued rights of contributory pensioners from March 2023 to date stands at ₦88bn. It is government debt; they should settle it,” Ogunkolade stated.

The CPS, instituted under the Pension Reform Act of 2004, mandates joint contributions from employees and employers to individual retirement savings accounts, aiming to create a sustainable pension system.

An amendment in 2014 raised the minimum contribution rate from 15% to 18% to further strengthen the system.

An official from the National Pension Commission, speaking anonymously, indicated that efforts are underway to release the funds, but acknowledged that progress has been slow.

The official said, “As for the figure, I am not in the position to confirm. But as for the issue of accrued rights being owed on account of the government not releasing the money, that is true.

‘’But efforts have not reached advanced stages. The government is about to conclude its process of ensuring that the money is released to enable the payment to retirees
.”

In response to delays, the pensioners have scheduled a protest for October 23, to be held at Unity Fountain in Abuja.

A letter dated October 17 and addressed to NUP members nationwide outlined plans for a peaceful rally to push for the release of pension funds.

It read, “Sequel to the resolution reached during our online meeting dated 11th October 2024, on the need to organize a peaceful mega-rally in Abuja to press home and demand the release of funds as well as payment of all our outstanding accrued rights and consequential adjustment arising from pension increments, the CAC Secretariat has come up with the following schedule for the peaceful rally to some designated offices Abuja:

“Office of the Accountant-General of the Federation; Office of the Secretary to the Government of the Federation; National Assembly and Unity Fountain.

“All state/sector chairmen and secretaries; All chairmen and secretaries of coordinating units; All statutory branch chairmen and secretaries living outside Abuja and environs, who after paying the levy assigned to them by the union for the mega-rally are capable of sponsoring a delegate or more, especially their chairman or secretary to the mega-rally, are by this letter invited to do so on their own volition
.”

Meanwhile, Zamfara State Governor Dauda Lawal has approved a payment of ₦9.3 billion to reduce the state’s pension backlog.

According to Lawal’s spokesperson, Suleiman Idris, ₦4.86 billion has already been disbursed across nine installments, benefitting thousands of local government retirees.

In Plateau State, pensioners are still awaiting the fulfillment of Governor Caleb Mutfwang‘s earlier pledge to settle the ₦30 billion pension debt.

NUP Chairman Yimusa Ishaku voiced disappointment, saying, “Pensioners in Plateau are suffering. The past administration in the state did not pay our entitlements. Some of our members are owed up to four years arrears, others two years, 13 months, or two months, depending on the time you retire.

“So, we were happy when Governor Mutfwang announced during a retreat with pensioners and other union members early this year that his administration would clear a backlog of pensions with ₦30b. But more than eight months after the governor made the declaration, the arrears have not been cleared, leaving our members to continue to suffer
.”

In Benue, retirees are owed an estimated ₦70 billion by past administrations, though the current administration has been keeping up with recent pension payments.

NUP Chairman Mike Vembe has appealed to the governor to prioritize clearing these backlogs, saying many pensioners are enduring severe hardship.

In Kano, Governor Abba Kabir Yusuf has managed to pay off ₦11 billion of the ₦33 billion pension debt inherited from the previous administration.

State NUP Chairman Salisu Gwale commended the governor for his dedication, saying it was an unprecedented level of commitment from any government in Kano State.

For pensioners in Kaduna, however, many are still waiting for their accrued rights under the contributory pension scheme.

The NUP Secretary, Malam Alhassan Musa, noted that while monthly payments have been consistent, outstanding gratuities remain unpaid.

In Nasarawa, the government has allocated over ₦2 billion to clear long-standing pension debts dating back to 1999, taking advantage of increased state revenue.

Governor Abdullahi Sule‘s senior special assistant, Peter Ahemba, encouraged pensioners to be patient as the payments proceed.

In contrast, the situation in Enugu State remains dire, particularly for former primary school teachers and local government staff, some of whom have not received pensions for over two years.

The state has not paid gratuities to civil service retirees since 2010, and many former parastatal workers have been left without pensions since 2021.

NUP Chairman, Ikechukwu Ekere described the situation as life-threatening, noting that some retirees have died due to unpaid pensions.

In Kwara State, NUP Chairman, Alhaji Saidu Oladimeji revealed that the state has halted pension payments altogether.

When asked about the pension backlogs, he simply stated, “I don’t want to answer the question because I don’t know when pensioners were paid last in the state. There is a maxim that ‘rest is sweet after labour’ but the reverse is the case for pensioners in Kwara state. Our situation is ‘rest is bitter after labour.’

The post Nigeria’s Pension Crisis Deepens As Federal, State Govt Owes Retirees Over ₦193 Billion appeared first on Naija News.
 
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