Pension backlogs owed by both federal and state governments in Nigeria have escalated dramatically, exceeding N193 billion, according to recent findings by DANDALI. This alarming situation highlights the ongoing struggle faced by retirees who depend on these payments for their livelihoods. While some states, including Zamfara, Benue, Kaduna, and Kano, are taking steps to address these debts, the Federal Government is still lagging, with over N88 billion in contributory pensions yet to be settled. Additionally, numerous states are grappling with pension backlogs estimated to exceed N105 billion.
Bunmi Ogunkolade, the spokesman for the National Union of Pensioners (NUP), confirmed to The DANDALI that the Federal Government has not cleared N88 billion in accrued rights under the Contributory Pension Scheme (CPS) since March 2023. This situation has left many pensioners in distress, relying on what is legally owed to them for their survival.
The CPS, introduced by the Pension Reform Act of 2004, was designed to ensure a more sustainable pension system in Nigeria. Under this framework, both employees and employers contribute to a Retirement Savings Account for each worker, aiming to provide financial security in retirement. Initially, the law set the minimum combined contributions at 15% of an employee’s monthly earnings, but this was later increased to 18% in the 2014 amendment, reflecting a commitment to improving pension provisions.
Ogunkolade emphasized the urgency of addressing these outstanding debts: “The accrued rights of contributory pensioners from March 2023 to date stands at N88 billion. This is a government debt that needs to be settled.” This statement underscores the frustration felt by pensioners who have been waiting for payments that should have been made.
In light of these delays, pensioners have organized a rally scheduled for October 23 in Abuja, aiming to pressure the government for the immediate release of funds and payment of all outstanding rights. A letter detailing the rally was distributed to all state chapters and branches, outlining the planned route, which includes key government offices such as the Accountant-General of the Federation and the National Assembly. This demonstration reflects the growing frustration and desperation among retirees, who feel their needs have been consistently overlooked.
In Zamfara State, Governor Dauda Lawal has taken proactive measures by approving payments totaling N9.3 billion in pension arrears. His spokesperson, Suleiman Idris, noted that since February, the government has been verifying pension entitlements to ensure that retirees receive their due payments. As of now, 2,666 out of 3,880 verified pensioners have received a total of N4.86 billion in their gratuity entitlements, a positive step in addressing the backlog.
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Conversely, the situation in Plateau State is grim, with the local NUP chapter criticizing the state government for failing to fulfill a commitment to clear a N30 billion backlog. Chairman Yimusa Ishaku expressed his concerns, stating that many pensioners are owed up to four years of arrears. This unfulfilled promise has left retirees in a precarious position, struggling to meet their basic needs.
Kano State faces its own challenges with a pension debt inherited from the previous administration, amounting to N33 billion. NUP Chairman Salisu Gwale commended the current administration for paying N11 billion to pensioners over the past year, marking a significant improvement in the state’s approach to pension management. However, many pensioners continue to feel the burden of unpaid arrears.
In Nasarawa State, positive developments have emerged, as the government recently approved over N2 billion to settle outstanding gratuities for retirees from 1999 to 2011. Peter Ahemba, the Senior Special Assistant to the Governor on Public Affairs, explained that improved state revenues have made this payment possible. He urged retirees to be patient, acknowledging that the unpaid entitlements have accumulated over several administrations and that clearing them will take time.
In Benue State, pensioners are contending with approximately N70 billion in arrears owed by previous administrations. While the current government is making efforts to pay pensions since taking office, many retirees are still facing financial hardship due to the historical debts.
The situation is particularly dire for retirees in Enugu State, especially former primary school and local government staff who have not received pensions for 26 months. Furthermore, workers who retired under the state civil service have been awaiting their gratuities since September 2010, compounding their difficulties. Mr. Ikechukwu Ekere, the State NUP Chairman, lamented the dire circumstances faced by these retirees, noting that many are living in extreme poverty and some have even died without receiving their dues.
In Kwara State, the plight of pensioners is similarly bleak, with reports indicating that payments have ceased altogether. Alhaji Saidu Oladimeji, the NUP Chairman for the state, expressed his frustration, stating, “I don’t want to answer the question because I don’t know when pensioners were paid last in the state.” He underscored the distressing reality that instead of enjoying the fruits of their labor, many retirees are left in financial limbo.
The Chief Press Secretary to the governor, Mallam Rafiu Ajakaye, redirected inquiries to the Head of Service and the State Civil Service Commission for more detailed information, indicating a lack of clarity in the administration regarding pension payments. Both the Commissioner for Communication and the Chairman of the Local Government Service Commission did not respond to requests for comments.
As the situation continues to unfold across various states, the collective experiences of retirees paint a grim picture of the challenges faced by those who have dedicated their lives to public service. The urgency for government action to address these long-standing pension debts is clearer than ever, as pensioners advocate for their rights and seek the financial security they were promised.
