The National Pension Commission (PenCom) has hinted at plans to push for pension increases for public service retirees in Nigeria, aligning with constitutional provisions. This development was revealed by the Acting Director General of PenCom, Ms. Omolola Oloworararan, during a recent address in Lagos, where she emphasized the agency’s commitment to ensuring that pensioners under the Contributory Pension Scheme (CPS) and other arrangements receive the increments guaranteed by the 1999 Constitution of the Federal Republic of Nigeria (as amended).
Oloworararan highlighted the constitutional requirement for periodic pension reviews, which mandates that the Federal Government and the Federal Capital Territory Administration (FCTA) increase pensions every five years. However, these constitutional provisions have yet to be fully implemented by the government, leaving many pensioners without the expected periodic increases.
PenCom’s Role in Pension Administration
Under the Pension Reform Act (PRA) 2014, PenCom is responsible for regulating and supervising pension matters and retirement benefits in Nigeria. Despite this mandate, PenCom has yet to issue specific regulations or directives to enforce regular pension reviews for federal government employees or FCTA retirees.
Increasingly, there is pressure from non-state actors, such as civil society organizations (CSOs), to address this issue. There are calls for public interest cases to be brought before the National Industrial Court of Nigeria to compel the Federal Government and the FCTA, through PenCom and the Pension Transitional Administration Department (PTAD), to respect the pension review provisions in the Constitution.
Voices from the Nigerian Union of Pensioners (NUP)
The Nigerian Union of Pensioners (NUP) has been a vocal advocate for implementing these constitutional provisions. Recently, NUP Secretary for Kaduna State and the North-West region, Alhassan Musa, described the condition of retirees as “pathetic,” noting that many pensioners are receiving paltry sums as monthly pensions.
Musa commended Kaduna State, which set a precedent in 2020 by implementing a N30,000 minimum pension under the administration of Governor Nasir el-Rufai. However, he pointed out that many pensioners under the federal system still receive as little as N10,000 per month, which is insufficient to meet their needs.
The NUP has proposed a 50% increase in pensions, hoping that the new national minimum wage of N70,000 will reflect in pension adjustments. Musa argued that pensioners should receive a minimum pension equal to the minimum salary of current workers, emphasizing, “If a worker is receiving N70,000 minimum salary, then pensioners should enjoy the same.”
Challenges Facing Retirees Under the CPS
Retirees under the Contributory Pension Scheme (CPS) face significant challenges, according to Musa. He noted that some pensioners who retired as far back as ten years ago are yet to receive their full benefits. The delay in remitting accruals into their retirement savings accounts has caused hardship among many retirees, leaving them financially vulnerable.
“It is really pathetic,” Musa commented. “This is happening in Kaduna and other states. Even under the federal government, those who retired under the contributory pension scheme are suffering as their accruals are yet to be remitted into their accounts.”
A Call for Action
The plight of Nigeria’s retirees highlights the urgent need for systemic reforms in the nation’s pension administration. PenCom’s commitment to securing pension increases is a promising step, but significant work remains to be done to ensure timely payments and adequate pensions for retired civil servants. As advocacy from unions and civil society groups grows, there is hope that these long-standing issues will be addressed, granting retirees the dignity and financial security they deserve after years of service.
The Federal Government is encouraged to expedite the pension review process, comply with constitutional mandates, and ensure that all retirees receive a livable pension aligned with the realities of today’s economy. The voices of Nigeria’s senior citizens, who served the nation dutifully, should not go unheard.
Source: Vanguard.
