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Tag: Pensions

  • 22years after: FG Endorses pensions for retired defunct Nigeria Airways workers

    22years after: FG Endorses pensions for retired defunct Nigeria Airways workers

    The Federal Government has endorsed the pensions for retired aviation workers after almost 22 years of waiting.

    In a statement shared by the National Orientation Agency (NOA) via its official X account on Tuesday, the Agency said that the Ministry of Aviation has confirmed that disbursements will begin soon, with a pledge to ensure transparency and fairness throughout the process.

    “The Federal Government has approved the long-awaited pensions for retired aviation workers, bringing long-overdue relief to thousands who served in the sector. This decision follows years of advocacy by unions pushing for justice for retirees, especially from defunct national carriers.

    “The Ministry of Aviation confirmed that the payments will be processed soon, with a commitment to transparency,” the statement read in part.

    The payment approval also factored in former staff of the airline.

    Nigeria Airways operated from 1958 until it ceased operations in 2003 due to mismanagement, corruption, and mounting debts. It was fully owned by the Federal Government.

    Upon its closure, over 6,000 former workers were left without their full pensions and gratuities, prompting nearly two decades of demands for justice.

    The decision follows years of sustained advocacy by unions demanding justice for retired workers, particularly those from defunct national carriers.

    The statement added that stakeholders have welcomed the development. Many see it as a long-overdue step toward restoring dignity and trust in the aviation industry.

    In 2018, aviation unions, including the National Union of Air Transport Employees (NUATE), the Air Transport Senior Staff Services Association of Nigeria (ATSSSAN), and the National Association of Aircraft Pilots and Engineers (NAAPE) threatened to shut down Nigerian airspace over the government’s failure to release N45 billion in entitlements owed to the retirees.

    The unions condemned the delayed payments and warned the then Minister of Aviation, Hadi Sirika, that they would not stand by while retirees continued to die without receiving their benefits.

    That same year, former President Muhammadu Buhari approved ₦22 billion for partial payment. However, union records indicate that N36 billion remained unpaid, leaving many retirees in financial distress. Some passed away while waiting for their pensions.

  • Pay us while we are alive – Pensioners beg FG

    Pay us while we are alive – Pensioners beg FG

    Many pensioners have urged the Federal Government and their Pension Fund Administratird (PFA) to pay them their annuity and pension entitlements whike they are still alive.

    The pensioners in an interview with NAN in Abuja on Sunday, said they need their money to take care of their feeding, medicals and other bills.

    The pensioners who lamented over their sufferings, also urged the federal government to increase their monthly pension in line witj the present economiv reality.

    Mr Ekpemyong Francis, who retired from the Federal Ministry of Information and Culture in May 2023 said he was yet to receive his retirements till date.

    “We are still waiting for the Federal Government to release the accrued rights to my PFA to calculate my pension.

    “My family and I are hungry. I can’t pay my children’s school fees. My landlord is on my neck and to top it all, I can’t access the National Health Insurance Scheme (NHIS) anymore.

    “If you look into my eyes, you will know that I need urgent medical attention. We the pensioners in this country are suffering,” he said.

    Mrs Joy Izor, who retired with her husband from the Ministry of Defence in 2016, said she had been struggling with life.

    “My PFA is IBTC. The agency worked my monthly pension to be N20,000 per month, but l went to annuity that offered me N25, 000,00 monthly, since then no additional kobo has been added to me.

    “We have been struggling to feed with this stipend. l am suffering, my husband is suffering too. What is our offence? We served our nation for 35 years.

    “After retirement I opened a shop to sell soft drinks, but government demolished the shop. Now this amount cannot even feed my family and I, talk less of our medical bills and other things.

    “Some of us couldn’t cope with this hardship. Even my neighbour that retired two years ago died two months ago. People look down on us because we are retirees,” she said.

    Izor said that when her shop was demolished, she ran to the company that she was selling their products for help, in terms of getting the product on credit to sell and repay, but her appeal was turn down.

    “Even my bank refused to grant me loan to continue the business because l am a retiree. No friend again, only God is sustaining me and my family now.

    “I am now appealing to this present government to help us pay all our rights now that we are alive.

    “I pray that all our colleagues that have fallen that God will accept their souls. For those of us still alive, I also pray God will help us to reap the fruit of our labour,” she said.

    Mrs Grace Yussuf, retired as a Deputy Editor-In-Chief in NAN, said that nothing had been paid to her since she retired in May 2023, while her health insurance had been stopped.

    “In fact, since March 2023, nothing has been paid. This is because government has not paid our accrued rights. My NHIS that was stopped immediately after my retirement has been a huge challenge, I spend a lot on lab tests and drugs instead of just ten per cent.

    “In fact, it is difficult to register for the private NHIS programme with 45k. They are even telling me I have issues with my payment that it has not dropped for the past three months that I registered. So no access to cheap medicals,” Yussuf said

    Mrs Nkiru Osisioma who retired in October 2019 as a deputy director in Federal Ministry of Education Abuja, said her entitlements were paid in January 2021.

    Osisioma said though the payment hax been regular, there was need to increase it.

    “Since then, I have been receiving my monthly pension from First Guarantee Pensions but now its Access Pensions.

    “I usually receive N67,000 until last two years I got pension enhancement from my PFA N71,000. They are regular in their payment but no increment since then.

    Mrs Christiana Ubah said that she retired in 2015 from the Federal Ministry of Budget and National Plannin, said she had not been paid for the past six months by African Alliance.

    Ubah urged the Federal Government to come to their aid, saying: “today I can’t feed myself, see how my face is, its hunger.

    “Among us here are people that retired since march 2023 and have not been paid a kobo. Look at how harsh the economy is because of our leaders.

    “We don’t have anything to live on now, every year they will tell us in the media that pension fund asset has increased, why are pensioners not paid?

    “We have a constitution in the country that every five years salaries will increase and pension will increase too,” she said.

    Ubah said that the CPS was an improvement from the Define Benefit Scheme (DBS), and they were better than the CPS.

    A legal practitioner, Mr Emmanuel Ikenna, said that pension was important to the nation’s development and should be properly managed.

    Ikenna, who advised that pension should not be scrapped, said that the Pension Reform Act which serves as the rules and regulations for the PFA, RSA and regulators should be reviewed at intervals.

    He said that pension makes provision for a retired person who had worked for so many years and need to relax and be taken care of.

    “Pension is a regular payment made by the state to people of or above the official retirement age and can also be withdrawn in some special circumstances,” he said.

    Mrs Ejiro Osas, a civil servant, said that pension scheme was a good one but after retirement the PFA should ask RSA holders what they want.

    “Some people may want to collect all their money to invest or do something else, PFA should not stress the RSA holder.”

    However, an official with the National Pension Commission (PenCom) said there were certain misconception about the withdrawal of lump sum from a retiree’s RSA balance.

    The official explained that retirees were allowed to withdraw a portion of their pension savings as a lump sum upon retirement.

    “There is a misconception that lump sum is fixed at 25 per cent of a retiree’s RSA balance. This is far from the reality.

    “In line with the provisions of the Pension Reform Act 2014 (PRA 2014), PenCom issued a Revised Regulation on the Administration of Retirement and Terminal Benefits.

    “The regulation established a Standard Retirement Benefit Computation (SRBC) template.

    “This is an automated template developed by PenCom for PFAs to calculate retirement benefits such as lump sum and monthly/quarterly pension, using age, gender, final salary, and the RSA balance.

    “The amount of pension savings a retiree can withdraw as lump sum and monthly pension are based on the template.

    “Significantly, since lump sum is not fixed, the retiree has a right to negotiate and choose to collect either the maximum lump sum due to him/her or take a minimum lump sum to boost his monthly or quarterly pension,” the official said.

    The official said that under the CPS framework, retirees must maintain a balance in their RSAs sufficient to secure monthly pensions equivalent to 50 per cent of their last salary.

    “The remaining funds can be withdrawn as a lump sum, offering flexibility while ensuring long-term financial security during retirement,” the official said.

    The official said that the template permits an RSA holder to withdraw a lump sum ranging from a minimum of 25 per cent to a maximum of 50 per cent of the RSA balance.

    The official also added that however, the monthly pension must first be calculated to meet the 50 per cent replacement ratio of the retiree’s last salary.

    “If a retiree’s RSA balance is insufficient to provide a 50 per cent replacement ratio of their final pay as a monthly pension, PenCom’sregulation allows the RSA holder to withdraw the minimum permitted lump sum of 25 per cent of their RSA balance.

    “However, it should be noted that pension and lump sum withdrawals have an inverse relationship.
    “The higher the lump sum, the lower the pension, and vice versa,’’ the official said.

    The official said that they the key principle of pension management was balancing immediate lump sums with the long-term sustainability of monthly payments

    The source said that allowing RSA holders to withdraw all their pension savings at retirement would defeat the primary objectives of the CPS of ensuring that workers receive retirement benefits as and when due to cater for their livelihood during old age.

    “The primary objective of the pension reform in Nigeria is to protect retires from destitution in their golden years.

    “An RSA is not a provident fund that can be withdrawn 100 per cent and leave the retiree with no periodic pensions, which is contrary to the requirement of Section 173 of the 1999 Constitution,” the official said.

    The official explained that withdrawing 100 per cent pension savings at retirement, would deplete the RSA, contrary to the provision of Section 173 of the 1999 Constitution (as amended), which guarantees the right to pensions for all public officers.

    “This is because payment of all or most of pension savings at retirement translates to zero pension for retirees and this will cause undue hardship and destitution for retirees.

    “The PRA 2014 allows employers to establish Additional Benefits Schemes (ABS), through which they can provide enhanced retirement benefits, including gratuity payments to their employees.

    “This means that employers have the flexibility to offer additional severance benefits beyond the mandatory retirement benefits stipulated by the CPS, depending on the terms of employment, affordability, and collective bargaining.’’

    The official also noted that the attention of PenCom had been drawn to non-payment to annuitants under the African Alliance Insurance Company, which was being regulated by the National Insurance Commission (NAICOM).

    The source said that PenCom was working with NAICOM to ensure African Alliance paid all outstanding annuitants to the affected retirees.

    “To prevent future occurrence, PenCom has enforced a regulatory requirement for all pension funds under annuity to be domiciled with Pension Fund Custodians (PFCs).

    “It is important to clarify that no PFA has stopped paying retirement and terminal benefits,”

    At the point of retirement, the pensioners would pick either programmed withdrawal or annuity. Programmed withdrawal is usually managed by PFAs and annuity is managed by insurance companies.

    Programmed Withdrawal is a retirement plan offered by Pension Fund Administrators for monthly/quarterly payments to a retiree for a lifetime.

    And annuity is a retirement plan purchased from an approved life insurance company that provides monthly or quarterly income to the retiree during his/her lifetime.

  • FG approves e-verification for military pensioners

    FG approves e-verification for military pensioners

    The Chairman, Military Pensions Board (MPB), AVM Paul Irumheson, says the Federal Government has approved an electronic verification system for military pensioners to ensure sanity in pension administration.

    Irumheson stated this while addressing newsmen on the commencement of the electronic verification exercise nationwide on Friday in Abuja.

    He said the initiative was aimed at sanitising military pension administration and elimination of issues of impersonation.

    The chairman said the board adopted an electronic verification system to reduce the risk of travelling from one place to another, and the cost of transportation owing to their old age.

    “You may recall that on Feb. 15, I briefed this honourable press about the board’s intention or plan to move from physical verification to electronic verification for our military retirees.

    “The reasons amongst others include security risk of travelling from one place to the other; old age of some of our pensioners; and high cost of transportation, particularly for those staying abroad,” he said.

    Irumheson said the board successfully conducted a pilot test from Feb. 15 to March 1, adding that only 15 of the 2,000 pensioners verified failed the process.

    He said the little observations noticed had been used to improve on the system.

    According to him, the Minister of State for Defence, Dr Bello Matawalle, and the Chief of Defence Staff, Gen. Christopher Musa, have approved the commencement of the verification for the esteemed pensioners.

    The chairman assured that the board would carry out sufficient public awareness to enable pensioners to navigate the system with ease.

    He called on military pensioners to take advantage of the electronic verification exercise as those who failed to, would seize to receive their pensions.

    “I hereby declare the Electronic Verification Exercise officially open on full scale for all our retired pensioners for a period of three months from July 1 to Sept. 30.

    “Finally, the Board wishes to advise all pensioners to take active part in this exercise.

    “Those that fail to take part in the verification exercise will not get their pensions going forward,” he said.

  • Gov Okowa gives update on N150bn bridging finance facility

    Gov Okowa gives update on N150bn bridging finance facility

    The Delta Government has accessed N30 billion out of the N150 billion bridging finance facility it applied for from a financial institution.

    Gov. ifeanyi Okowa of Delta made this known while answering questions from newsmen shortly after inspecting the Koka flyover and Interchange project.

    The governor also visited the Stephen Keshi Stadium, the Leisure Park and Film Village as well as the Dennis Osadebey University, all in Asaba.

    Okowa, who is also the Vice Presidential Candidate of the Peoples Democratic Party (PDP), said N25 billion out of the N30 billion has already been accessed by the state government and deployed into some ongoing projects.

    He said that the remaining N5 billion was channelled into the payment of pensioners in the Bureau for State Pensions and the Local Government Pensions Bureau.

    According to Okowa, LGAs pensioners are not under the state’s purview, the money (N2.5 billion) was given to them as grant from the state government.

    “On the Bridging Finance, as at today, we have only been able to access N30 billion of it and we have deployed it into various projects.

    “On the level of work at the Stephen Keshi Stadium, the governor said he was impressed with the pace of work and called on the contracting firm to redouble efforts so as to complete the various projects before November 24.

    He said that the state was set to host the National Sports Festival without any hitch, adding that the upgrade of sporting facilities in the stadium was to meet international standards.

    He advised those peddling fake news on the collapsed structure to base their reports on facts and not hearsay.

    “We were also at the stadium and a lot of work is going on there. They have reassured me that they would be out of that place by the 24th of November.

    “And I pray that they are able to do that because the games would start on the 30th of November. We are able to see the main bowl and the tracks that are being replaced.

    “You also noticed that the swimming pools, the main one and the warm up one have gone very far. There is also additional spectators stand which I am told will be ready in another week from today.

    At the Dennis Osadebey University, the governor lauded the contracting firms handling various projects in the institution for maintaining standard.

    On the Koka flyover and interchange and the Asaba Leisure Park and Film Village, Okowa said, the projects would be ready for use before the end of the year.

    Recall that on April 28, Okowa wrote the state House of Assembly, seeking approval of a bridging finance facility of N150 billion in favour of the state government. The House on April 26, approved Okowa’s request.

    Okowa said: ”the requested credit facility which has Zenith Bank PLC as the lead arranger, would be principally tailored toward defraying arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations in the state.

    The governor also said that part of the loan would be tailored toward taking care of outstanding pension commitments to the state and local government areas pensions in the contributory pension scheme, amounting to N20 billion and N10 billion respectively.

    ”Bearing in mind the administration’s resolve to finish strong, it is necessary for the state to capitalise on the refund to defray arrears of unpaid certificates earned by contractors with respect to completion of some critical ongoing legacy projects awarded by past and present administrations” the governor said.

  • TNG Deal Breakers: The Naira woes, retiree death scores, pension benefits, and other stories

    TNG Deal Breakers: The Naira woes, retiree death scores, pension benefits, and other stories

    By Ifeanyi Ugwuadu

    The aim of monthly or yearly pension payouts is to mitigate or cushion the likelihood of old age poverty. It is, for this reason, that withdrawal from pension savings after retirement is framed in such a way that the retiree gets so little each time. Whether through an annuity or programmed benefit withdrawal, each piece of the savings flies off without the possibility of another coming in. And the retirees die predictably quicker, unprepared and with little to start off a new phase after years of paid employment. But more worrisome is the fact that death in active service accounted for nearly 88% of the payouts by RSAs since inception. This high percentage of deaths should have triggered a review of the benefit structure in favour of named next-of-kin of the employee. Nigeria presents a unique scenario of the Contributory Pension Scheme owing to various factors peculiar to the country –– ranging from job insecurity, poor remuneration, and inadequate education of the retiree on pension matters. In addition, family and extended family responsibilities weigh heavily on each worker such that there is usually not enough time to plan an exit from paid employment.

    Pensions are also business for the administrators who build their profit out of the long-term management of retirement accounts. Pensions are also a huge source of investable funds and domestic borrowing for the government. So, for Nigeria’s pensions market, there are the Retirement Savings Account (RSA) holders, and then you have government regulators (National Pensions Commissions and National Insurance Commission), Pension Fund Administrators (PFAs) and Pension Fund Custodians (PFCs). Insurers and commercial banks make up the remaining parties of interest.

    Depending on what the retiree wishes to do with his savings, the other parties of interest congregate to take out of it. However, the question should be, whose benefits are being parcelled out among these stakeholders? With the free fall of the Naira, who is the loser? It must be stated that the retiree savings has been woefully eroded with unimaginable consequences to the entire system and particularly, those retiring since inception. It is impossible now to predict the worst-case scenario.

    So we have the entire pension scheme set up and supervised by the government. It is managed and run by private sector entities. The private firms are thoughtful enough to hedge their earnings from the employees’ savings but run out of ideas on how to hedge or guarantee the savings in times of hyperinflation such as we have today. Profit considerations and the need to maximize investments are the main drivers of rules to hold on, for as long as possible, the savings.  The earnings for the savers are very low but not so for the pension asset managers.

    You’re Alive only when you are working!

    The average lifespan of a retiree in Nigeria is 3 years! Death in active service accounted for 87.68% of this figure totalling 39,678 while death in retirement totalling 5,563 or 12.32 per cent makes up the balance. Adjusting the death benefits records of the 22 PFAs against duplication and other errors, about 45,241 death benefits were paid by PFAs to the Next-of-Kin of deceased RSA holders from the inception of the Contributory Pensions Scheme (CPS) to 31 May 2020. 

    Real Case

    A 64-year-old retiree who prefers to tell his story anonymously narrated his situation thus; “My PFA said the balance in my Retirement Savings Account (RSA) as at the time I was programmed in 2018 was N10.21 million and that I can only take about N2.5 million as a lump sum. The rest will be paid to me as a monthly pension.  I was diagnosed with heart problems last year, requiring about N3.5 million for surgery abroad to save my life. I returned to my PFA to ask for the balance in my RSA to enable me to pay for treatment abroad and I was told that I cannot take more than my monthly pension, it is what the law provided.  But what if I die now? I asked, and they told me the balance in my RSA will be paid en bloc to my Next-of-Kin.”

    He further queried; “Who should be the priority of PenCom and my PFA, myself that worked and saved the money, or my children who are meant to inherit my estate when I die? We contributed to the RSA so that we can take care of our needs in retirement. Unfortunately, now that my life is hanging on a balance, they are telling me that I cannot take my own money to save my life. They deceived us into saving for comfort in retirement and now that we have retired they are devising ways to hold onto our money until we die. This is deceitful!” he lamented.

    ANALYSIS OF DEATH IN RETIREMENT FROM INCEPTION – MAY 2020
    S/NO DETAILS TOTAL % OF TOTAL
    1 Total Death in Retirement 5,563 100
    2 Death Under 1 Year 2,805 50.42
    3 Death under 2 Years 600 10.79
    4 Death under 3 Years 482 8.66
    5 Death under 4 Years 418 7.51
    6 Death Under 5 Years 352 6.33
    7 Death Under 6 Years 285 5.12
    8 Death Under 7 Years 219 3.94
    9 Death Under 8 Years 168 3.02
    10 Death Under 9 Years 126 2.26
    11 Death Under 10 Years 69 1.24
    12 Death Under 11 Years 30 0.54
    13 Death Under 12 Years 8 0.14
    14 Death Under 13 Years 1 0.02
    Total 5,563 100.00

    From the above statistics, clearly, half the number of retirees die within one year after retirement while 70 per cent of them die within 3 years of retirement and the remaining die within the 10-year guaranteed period.

    These are Nigeria’s pension statistics and confirm that a different approach to dealing with the socio-economic problems should never be benchmarked with world standard methods. This scenario is the background for a groundswell of agitation by pension savers to maximize their exit from the scheme. It is totally insensitive not to pay attention to the glaring statistics that show that many working-class Nigerians do not live up to retirement and when they do eventually retire, most die three years only post-retirement. How does the system justify a 25% lump sum payment while 75% is spread over 15 to 22 years in view of the survival rate of three years? The reverse should be the case. Some retirees are so impoverished that the majority would want to cash out and have indeed approached their PFAs for the same. The time is now to propose an amendment to this regulation and the Pension Reform Act. Pencom should pay heed to the angst against the existing ratio and act quickly. A cashout regulation may also be part of the deal for retirement savings account holders within the scheme.

    Job security and structure of Nigeria’s labour market

    Aside majority of employees in the public sector, job security in the private sector is almost surreal. Figures from the National Statistics Bureau puts current unemployment, underemployment and youth unemployment at 33.3%, 22.8% and 42.5% respectively. These rates are staggering in their effect on the economy and for an uncoordinated labour market, this situation gives total control to employers. The services sector pays comparably better than the public sector and the real sector. In effect, for any existing job, no matter how paltry the salary, more than 10,000 people are willing to take it.

    In the private sector, Mergers & Acquisitions (M&As) are enlarging the already saturated labour market because new investors usually capitalize on weak labour laws and kick out existing employees to evade pension liabilities. The immediate profit target is the savings from layoffs. Thus there is an army of young retirees who are eager to draw down their entire pension savings to start some business on their own. With no possibility of getting another job, this appears to be the only option. But, pension regulation does not have a provision for drawdown by any retiree and those who have attained a minimum of 50 years, can only take a 25% lump sum.

    The Case for 75% lump sum payment

    Unarguably, most retirees prefer a higher lump sum than the 25% regulatory lump sum that the law stipulates.  A bill at the National Assembly is seeking to raise the statutory lump sum from 25% to 75%. However, PenCom and PFAs are opposed to it because it makes the business of managing pensions unattractive and confirms my earlier assertion that the pension scheme is for business owners and not for savers. But at least the system can save the “hen that lays the golden egg” to guarantee the survival of the market that trades on the weakness of savers. It is true that within the subsisting law, the retirees are entitled to only a 25% regulatory lump sum as prescribed in Pension Reform Act 2014.

    In some cases, a 50% lump sum is payable based on the basic salary of the retiree at the point of exit. Unfortunately, many retirees are not well informed about the possibility and mechanism of receiving a 50% lump sum at once. It may be necessary to cover this aspect in a fresh article. The case for a higher lump sum at retirement is justified if trends like the survival rate of retirees, negative real returns on investments, and prevalence of critical and terminal illnesses including the need to engage them in productive activities are considered. Rather than focus on the legal transfer of their savings to those who survive them, the system may be strengthened to help them transit to another productive endeavour that makes life meaningful.

    RECORD OF DEATH BENEFITS PAID BY PFAS FROM INCEPTION TO MAY 2020
    S/NO DETAILS TOTAL % OF TOTAL
    1 Total Number of Deaths Adjusted for Errors 45,241 100
    2 Death in Active Service 39,678 87.68
    3 Death in Retirement (Programmed Withdrawal) 5,563 12.32

    The table above shows the high mortality rate of retirees since the inception of CPS till May 31, 2020. With about 45,241 deaths, post-Covid-19 figures are bound to escalate the number of deaths.  . Death in active service accounted for 87.68% of this figure totalling 39,678 while death in retirement totalling 5,563 or 12.32 per cent makes up the balance.

  • I’ll not renege on full payment of workers’ salaries, pensions, if reelected – Oyetola

    I’ll not renege on full payment of workers’ salaries, pensions, if reelected – Oyetola

    Gov. Gboyega Oyetola of Osun, has said he would not renege on his promise of make payment of full salaries and pension to workers and retirees, if reelected.

    Oyetola said this during an engagement programme with members of The Triangular Group of Pensioners on Sunday in Osogbo.

    Represented by his Special Adviser on Civic Engagement, Mr Olatunbosun Oyintiloye, the governor said those who were spreading false information that he would stop payment of full salaries and pension are enemies of progress, whose minds are not always with positive development.

    The governor, who said his priority is to always see the state’s workforce happy and productive, said the era of half salaries is gone in the state.

    Oyetola also assured the pensioners in the state that nothing would stop the payment of their monthly pension, adding that their positive contributions to the development of the state would never be forgotten.

    The governor, who noted that his administration had not failed in the payment of the monthly stipends to the senior citizen since inception, said he will not stop putting smiles on their faces through prompt payment of their pension.

    Oyetola also urged the state workers to continue to support his administration and shun those who always want to turn the labour force against government

    The governor, who noted that payment of salaries is one of the core responsibilities of any reasonable government, said he would continue to prioritise the welfare of the workers and the citizenry as a whole.

    “And with God’s help, that will continue for as long as I remain the governor.

    “I want to allay your fears over the insinuation that I will not continue with the regular payment of salaries and pensions, if reelected.

    “Payments of workers has been a covenant I made with God and nothing will stop me from fulfilling the promises”.

    Oyetola urged government workers in the state to ignore the falsehood being spread around by those he described as political jobbers, adding that he will never disappoint them.

    The governor, who commended the workers for supporting his administration, urged them to show more of such support during the July 16 governorship election in the state.

    He said their votes for him will ensure continued and more delivery of good governance.

    In his remarks, Mr Rotimi Adelugba, the Chairman of the group, commended the governor for his usual prompt payment of pension and gratuity to retirees in the state.

    Adelugba said since the inception of Oyetola’s administration, pensioners in the state had been collecting full payment of their stipends as and when due.

    “We need to commend the governor for this gesture. As the workers were being paid at the end of the month, pensioners are also receiving theirs immediately,” he said.

    “The governor must be commended because on a monthly basis he approves N508 million for the payment of pension and N200 million for the payment of gratuity.

    “Out of the N200 million for the payment of the gratuity, N150 million goes for the pensioners under the contributory pension scheme, while N50 million is for pensioners under the old system,” he said.

  • Lagos assembly slashes pensions of Tinubu, Fashola, Ambode, other ex-govs by 50%, cancels provision of houses in Abuja, Lagos

    Lagos assembly slashes pensions of Tinubu, Fashola, Ambode, other ex-govs by 50%, cancels provision of houses in Abuja, Lagos

    The Lagos State House of Assembly has slashed pensions of former governors by 50%.

    The slash which was announced in a statement on Thursday, follows a report and consequently, a recommendation by the assembly’s Committee on Establishment.

    The committee also expunged the provision of houses in Abuja and Lagos for former governors as stipulated in an earlier law operated by the state.

    The report further showed a reduction in the number of vehicles to be made available to former governors and their deputies.

    Speaker of the House, Rt. Hon. (Dr) Mudashiru Obasa, suggested that former governors should get two vehicles (a car and a van) instead of three as recommended by the committee.

    Obasa also suggested that the amended bill should provide that the cars be changed every four years instead of the three years recommended by the report.

    While some of the lawmakers, at plenary, had suggested an upward review of the pension for the affected public office holders by 75 per cent, others urged that the pension remain as stipulated in the old law.

    Obasa, however, argued that it should be left at 50 percent, especially as the report had recommended the removal of houses and reduced other benefits.

    Recalling the recent murder of the President of Haiti, Obasa said it was necessary to also secure the lives of the former officeholders.

    “By virtue of my office, I have seen former speakers who we just had to intervene in their lives because of the situations they found themselves outside office. We have also seen former governors in a very bad situation,” he said.

    The Speaker noted the argument of his colleagues that the projected downward review of the pension for the former governors and others could also be affected by inflation and other economic considerations, but reminded them that the House must meet the wishes of the people one of which is a cut in the cost of governance.

    “There is no argument, we must realise that this is democracy and it is all about the people. We are here because of the people. When we represent people, it is good for us to listen to them as well.

    “We must realise that we would always go back to the people for support. So when we hearken to their agitations and reduce what existed, it shows that we listen,” Obasa told his colleagues, adding that his suggestion for further reduction of the number of cars was because “as you age, your needs continue to decrease.”

    Earlier, some of the lawmakers had supported the report of the committee saying it would have a positive impact on the internally generated revenue of the state.

  • How I helped Nigeria save $3.5bn from pensions, subsidy fraud under two presidents – Okonjo-Iweala

    How I helped Nigeria save $3.5bn from pensions, subsidy fraud under two presidents – Okonjo-Iweala

    Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala yesterday reminisced on her tenure as Nigeria’s Finance minister under Presidents Olusegun Obasanjo and Goodluck Jonathan.

    She also revealed how she superintended over saving Nigeria a cumulative $3.5 billion by cleaning up the country’s pension and subsidy systems.

    Okonjo-Iweala spoke during a monitored online interview organised by Atlantic Council, a United States think-tank on international affairs.

    She stated that in her first stint under former President Olusegun Obasanjo, her vision was to see the renegotiation of Nigeria’s debt and the second under former President Goodluck Jonathan was to stamp out corruption.

    Describing her job at the World Bank as wonderful, she affirmed that when she was called upon by the then president Obasanjo, she was a vice president and corporate secretary at the bank.

    She added that having been brought up in public service her whole life by her parents, it was a chance to give back to the society under the former president who wanted, in particular, some expertise in getting Nigeria’s debts written off or negotiated.

    She said Nigeria was indebted by $30 billion to the Paris Club with a debt service of $2 billion a year, of which the country could only pay $1 billion. But with reforms of the economy, she was able to systematise the country’s debts.

    During her second coming under Jonathan, the WTO DG stated that she focused on fighting corruption and trying to put Nigeria’s financial management system on a modern standing and to update and modernise the systems.

    She said the financial management system was largely cash-based when she took over, making the government deploy technology, to lower the ability for things to go wrong and for corruption to creep in.

    Okonjo-Iweala added: “And just by having an integrated financial management system, we were able to cut down on the phenomenon of ghost workers, you know where people used to put additional people on the payroll in the ministries, ghost pensioners, because ghost workers will graduate to ghost pensioners, and so we got rid of that and saved $1.1 billion for the government.

    “So that is, we were fighting other types of corruption. We had an oil subsidy system in which we used to pay marketers. Oil marketers who brought in refined oil, you know, we paid them the difference between the market price, and the subsidised price that the government was mandated for selling oil to people.

    “And so, that was when I came the second time. This was a big problem. When I left government the first time in 2006, these subsidies were about $2 billion, when I came back, the first thing we noticed was that it had grown to $11 billion.”

    According to her, there couldn’t have been any way so many people joined the middle class and bought cars and were able to afford to buy fuel which made the subsidy soar.

    She said: “So, I asked President Jonathan that we could audit the oil accounts which he fully supported. When we audited, $8.5 billion of the accounts, we found $2.5 billion of fraudulent claims and with his backing, we refused to pay that to the marketers and that led to a series of problems, which I won’t bore you with, including threats to my life.

    “My mother being kidnapped for five days was one of the worst periods of my life and it was a very tough period. But, that being said, I think the privilege of serving my country as finance minister for several years, to being able to work on some reforms is one of the best things I’ve ever done.”

  • As NPF Pensions ups retirement benefits ante

    As NPF Pensions ups retirement benefits ante

    By Ikechukwu Amaechi

    For the management of the Nigeria Police Force Pensions Limited (NPFPL), not even the axiomatic sky is the limits. It is only a stepping stone to greater heights because the stakes in the pensions industry will always be high.

    That is the worldview that drives the Pension Fund Administrator (PFA) and for her clients, men and women of the Nigeria Police Force, that pragmatic philosophy only means one thing – good news.

    Conceived as a one-customer Pension Fund Administrator (PFA), the NPFPL was exclusively dedicated to serve the police with a vision “to be the benchmark in Pension Fund Administration in Nigeria.”

    When it was established six years ago, the idea was to have a PFA exclusively responsible for pension management of all police personnel, according to the Pension Reform Act (PRA 2014).

    Before then, policemen were scattered in all the other 20 PFAs.

    The PFA since inception has worked hard to justify its license not just by meeting the benchmark expectation but actually exceeding it through creative innovations that make the welfare of police officers the centre of its gravity.

    Many retired police officers concur that the PFA has not only deliberately made their clients – policemen – their numero uno in terms of priority but indeed, their only priority.

    Sources within the organization aver that the prioritization policy is deliberate in furtherance of the PFA’s stated mission, which is “to provide quality customer and financial advisory services to stakeholders and adopt investment strategies that would yield the best possible returns on their pension assets.”

    Realizing this laudable mission in an industry as competitive as the pension industry especially by a new entrant entails financial creativity at its best. On this score, the PFA has excelled by going beyond what is considered usual in the industry.

    Even their competitors in rival PFAs acknowledge that when it comes to the welfare of clients, the NPF Pensions seem to have an edge as they are always on top of their game.

    A source within the organization who pleaded anonymity puts is thus: “For us, thinking outside the box is more than just a business cliché. As a one-customer PFA dealing exclusively with the police, we knew that the only way to deliver handsomely on our mandate is to approach our task in new, innovative ways. And the only way that can be done is to conceptualize the problem, which in our situation means a retiring police officer, differently.”

    One of the creative ways the NPF Pensions devised to make life more meaningful for policemen in retirement is the introduction of the Retiree Resettlement Support Scheme (RRSS), which is the payment of certain amount of money to retiring police officers as welfare support.

    The RRSS is not part of its mandate. In fact, till date, it remains the only PFA that is giving back to its clients.

    Introduced in 2017, the scheme has gone a long way in enhancing the welfare of policemen in retirement.

    Our sources informed that so far, about N1.5 billion has been paid out to 10,400 retirees.

    The RRSS is a freebie. For any other organization, the idea of a freebie to its clients would be a big deal.

    But for a company that is always striving for excellence, nothing short of the best is good enough.

    And living up to its reputation of an organization that is always upping the ante in order to deliver maximum benefits to its clients, the NPFPL yet improved on what is already a benchmark in the industry by further raising the bar.

    In 2018, the RRSS was further enhanced for the senior officer cadre from the rank of Commissioner of Police and above.

    And since the NPF Pensions leadership believes in the ‘what is sauce for the goose should also be sauce for the gander axiom,’ it has also considered and approved that starting from October 1, 2020, the payment of RRSS for officers from the cadre of CSP and below be reviewed upwards by 100 per cent.

    This gesture is remarkable and the beneficiaries are appreciative.

    Mr. Charles Effiong who retired in 2019 as a Superintendent of Police (SP) said the largesse came in handy.
    “When we retired, we were not paid our retirement benefits immediately. We were told that the Federal Government was yet to release our accrued benefits but the PFA came to our rescue with the RRSS funds that enabled me to relocate from Lagos where I was serving before retirement to Uyo, Akwa Ibom State where I intend to settle.”

    Effiong believes that things will even get better now that there is an upward review and a promise by the NPF Pensions of continuous enhancement of the scheme as the company’s income increases.

    For a retiring officer to be eligible for the RRSS, the RSA account must have been domiciled with the NPF Pensions for a minimum period of two years. Many police officers say that is a fair deal.

    “We have every reason to be with NPFPL for life,” enthused a serving police officer who pleaded anonymity.

    “Why would any policeman not pitch tent with the NPF Pensions?” he queried and provided the justification for a stay: “Prior to its establishment, many policemen on the Contributory Pension Scheme (CPS) were neither receiving statements on their Retirement Savings Accounts (RSA) nor had any communication with the PFAs, and, therefore, didn’t know what was happening to their accounts. All that is now history. Not only that, the PFA continues to reinvent itself by improving retirement benefits even when we least expect it, moreover, NPF Pensions is located in every Formation and Command and therefore, easily accessible.”

    Many retired police officers are grateful that in this pandemic era when most organisations are scaling back their expenses because of liquidity problems, NPF Pensions is doing the opposite.

    But even as good as things are now, the PFA is assuring their customers that the best is yet to come.

  • Court orders payment of N151m pension arrears to Nyame, 3 others

    The National Industrial Court has ordered the payment of the sum of N151.1 million being the unpaid pension arrears of ex-governor of Taraba, Rev. Jolly Nyame and three others from May, 2013 to Oct.2015.
    The other claimants in the suit were Uba Ahmadu, Abubakar Armayau and Bilkisu Danboyi.
    The judge, Justice Sanusi Kado in a ruling on an application brought by the claimants counsel, Mr Uchenna Okeke entered a summary judgment in favour of the claimants
    Okeke’s application which was brought in pursuant to Order 34, Rule 4 of the NICN Civil Procedure Rule, 2017, sought for an order of court to enter summary judgment against the defendant, the Taraba State government, compelling the defendant to pay the balance of his clients pension arrears within four months.
    The application was however opposed by the defence counsel, Mr Emmanuel Anderifun in a counter-affidavit.
    Kado in the ruling granted the summary judgment.
    He said the sole issue for determination was the number of times the defendant will make the payment in instalments.
    He further stated that the defendant had always admitted owing the claimants the said amount.
    The judge added that facts admitted needed not to be proven by evidence or further proof.
    Kado said the bone of contention was the number of time the payment would be made.
    He said the claimants demanded for their payment in four instalment payment while the defendant proposed 18 installments.
    The judge ruled thus” the decision of the court is for 10 equal instalments payment commencing from July. 2019 on a monthly basis until the final liquidation of the total sum.
    “Failure to abide by the decision of the court will attract 10 per cent interest rate for the defendant.
    ” Summary judgment is hereby entered accordingly” he concluded.
    News Agency of Nigeria (NAN), reports that the claimants who were former employees of the defendant upon retirement were paid the sum of N45 million out of their total pension arrears of N196 million.
    They therefore, approached the court to seek redress after every efforts to get the balance of their pension arrears failed.
    The Attorney-General of Taraba was a co-defendant in the suit.
    NAN reports that on May 31, 2018, Justice Adebukola Banjoko of the High Court of the Federal Capital Territory in Gudu, Abuja, sentenced Nyame, to 14 years’ imprisonment for his acts of criminal breach of trust and misappropriation of the sum of N1.64bn belonging to the state.
    The judgment marked the end of about 11 years’ trial which would be the first full-blown criminal proceedings to be conducted in a Nigerian court and ended in a guilty verdict sending a former governor to jail for a period as long as 14 years for corruption.
    Nyame, was convicted and sentenced to various terms of imprisonment with the highest being 14 years for offences bordering on criminal breach of trust, criminal misappropriation, and taking valuable thing without consideration and receiving gratification as a public officer.
    The judge sentenced him to the maximum punishment of 14 years for criminal breach of trust without an option of fine, two years for criminal misappropriation; seven years for receiving gratification and five years for “obtaining valuable thing without consideration.”
    The sentences were the maximum provided by the law under which the convict was charged in May 2007.