The National Pension Commission (PenCom), Central Bank of Nigeria (CBN), Office of the Secretary to the Government of the Federation (SGF), Nigeria Union of Pensioners, and other critical stakeholders have voiced strong opposition to the proposed amendment bill seeking to establish a Police Pension Board.
During a Senate hearing on Tuesday, stakeholders from the labor and finance sectors deliberated on the controversial bill, which aims to remove the Nigeria Police Force from the Contributory Pension Scheme (CPS). Opponents of the bill argue that such a move could destabilize the country’s financial system.
Mr. Farouq Khalil, representing PenCom, firmly opposed the bill, emphasizing that the police’s exit from the CPS could have detrimental effects on the financial system. Khalil noted that current liability challenges within the CPS are being addressed and argued that the scheme is well-suited to cater to the needs of the police.
The Office of the SGF and the CBN echoed PENCOM’s position, urging lawmakers to maintain the status quo and find alternative solutions to improve the welfare of police officers without dismantling the existing system.
However, the sponsor of the bill, Senator Binos Yaro (PDP, Adamawa South), defended the proposed legislation, citing the inadequacy of the current pension structure for police officers. According to Yaro, retired Commissioners of Police receiving as little as ₦70,000 in monthly pensions is unacceptable and demoralizing. He advocated for a Police Pension Board, arguing that the police deserve the same exemptions as the military, Department of State Services (DSS), and other intelligence agencies.
The bill also garnered support from representatives of the Police Force, including Inspector General of Police Bala Ciroma and retired Deputy Inspector General of Police Mohammed Yesufu. Both officials argued that the police should be granted autonomy over their pension system to ensure better welfare for officers.
Despite these arguments, workers’ unions remain steadfast in their opposition. They contend that removing the police from the CPS is not the solution to their welfare concerns and could set a dangerous precedent for other sectors seeking to exit the scheme.
The Senate Committee on Establishment, chaired by Senator Cyril Fasuyi (APC, Ekiti North), is expected to present its findings and recommendations to the Senate next week. The decision on this contentious amendment will have significant implications for the structure of Nigeria’s pension system and the welfare of police officers.
