Retirees in Anambra, Ebonyi, and Enugu States have expressed deep frustration over the delayed disbursement of their pensions, calling on the Federal Government to eliminate bureaucratic obstacles that hinder timely payments for retired civil servants across Nigeria.
In a survey conducted by the News Agency of Nigeria (NAN), retirees revealed their struggles, with some waiting up to two years post-retirement without receiving their pension entitlements. The delays have forced many retirees into financial hardship, despite their years of dedicated service.
Retirees Speak Out
Mr. Julius Okafor, a retiree from 2022, shared his painful experience. “I have submitted all necessary documents, but my pension administrator has yet to pay me. My friends and relatives have been supporting me, which is embarrassing for someone who served his country for 35 years,” Okafor lamented. He called on the government to remove the bureaucratic red tape that prevents retirees from accessing their savings.
Similarly, Mr. Emmanuel Nwaiwu, who retired in 2024, urged the Federal Government to set up a system for immediate lump-sum payments upon retirement, followed by regular monthly pension payments. He emphasized that the backlog of unpaid pensions is growing, making the situation even more complicated for retirees.
In Ebonyi State, stakeholders, including retired civil servants, have called for a complete overhaul of the National Pension Commission (PenCom) to address delays in benefit payments.
Dr. Mathew Odono, a retired Director of the National Orientation Agency (NOA) in Ebonyi, expressed his dissatisfaction with the current system. “I retired in March 2024, and I haven’t received a kobo yet. We applied during the retirement period, but nothing has come through,” Odono stated, calling for an urgent review of PenCom’s processes to protect retirees from unnecessary suffering.
Supporting this call, Mrs. Happiness Okonkwo, a legal practitioner, advocated for the revision of the Pension Reform Act, 2024 to ensure a smoother pension disbursement process. She criticized the system’s failure to promptly release retirees’ savings, remarking that it is unfair to withhold their hard-earned funds after decades of service.
Causes of the Delays
According to Dr. Arinze Udechukwu, the Zonal Coordinator of Leadway Pension Administrator, the primary cause of delays lies with the government’s slow remittance of pension funds to administrators. Udechukwu explained that under the Pension Act, retirees are entitled to a portion of their pension as a lump sum, with the balance paid in monthly installments. However, delays in funding from the government hinder this process.
Udechukwu advised current civil servants to consider joining pension schemes that offer investment guidance, enabling them to secure their financial futures. He also encouraged civil servants to learn a trade before retirement, as relying solely on pension payments may lead to financial difficulties in the future.
Mr. Julius Ezema, a lawyer and rights activist, recommended that the government mandate pension fund administrators to start processing pensions six months before a civil servant’s retirement. He argued that timely pension payments would help prevent retirees from facing undue hardship and suffering. Ezema noted that delayed pension payments have forced many retirees into serious financial distress, with some even facing life-threatening situations as they wait for their entitlements.
Background on Nigeria’s Pension System
The Pension Reform Act (PRA) of 2004 introduced the Contributory Pension Scheme (CPS), making it mandatory for both public and private sector employees and employers to contribute towards retirement benefits. However, the pension system in Nigeria continues to struggle with challenges, including inadequate funding, poor management, low coverage, lack of awareness, and weak regulatory oversight.
As the government considers further reforms, retirees in Southeast Nigeria hope for a more efficient pension system that will respect their years of service and ensure they receive their pensions promptly, without bureaucratic delays. The Federal Government’s efforts to streamline pension administration could ease the financial burdens on retirees, providing them with the financial security they deserve.
Source: Nairametrics.
