Increased Budgetary Allocation for Military Pensions: A Response to Protests and Demands
The Nigerian Federal Government has proposed a substantial 53% increase in the 2025 budget allocation for military pensions, raising the total from N221.66 billion in 2024 to N338.90 billion. This significant increase comes in the wake of persistent protests by retired military personnel demanding the payment of outstanding entitlements and improved welfare. The retirees, organized under the Coalition of Military Pensioners, have staged multiple demonstrations at the Ministry of Finance in Abuja, highlighting their grievances and demanding action. The proposed increase signals the government’s acknowledgement of these concerns and its intent to address the financial hardships faced by retired military personnel. The breakdown of the 2025 allocation includes N230.32 billion for military pensions, N66.85 billion for expected retirees this year, and N38.15 billion for death benefits, with a consistent N3.57 billion allocation for the National Health Insurance Scheme.
Unpaid Entitlements and Recurring Protests: The Catalyst for Change
The protests by military pensioners stem from a series of unmet financial obligations and perceived injustices. Their demands include the payment of a 20% to 28% salary increment from January to November 2024, palliatives for October 2023 to November 2024, a lump-sum payment of the Security Debarment Allowance, a refund of pension deductions from medically boarded soldiers’ salaries, and an additional N32,000 monthly to their pensions. The protests intensified in late 2024 and early 2025, with retirees effectively shutting down operations at the Ministry of Finance on several occasions. While the government initially responded with partial payments and promises, the failure to fully meet these commitments fueled further demonstrations and underscored the deep-seated frustration among retired military personnel. The recurring protests have garnered public attention and highlighted the plight of veterans who, despite their service to the nation, face financial insecurity due to delayed entitlements.
Government Response and Payment of Overdue Entitlements:
Following the January 7, 2025 protest, the Federal Government finally initiated the payment of long-overdue entitlements to retired military personnel. The Chairman of the Military Pension Board, Air Vice Marshal Paul Irumheson, addressed the assembled retirees, confirming the transfer of funds. Shortly thereafter, retirees began receiving payment alerts, prompting the demonstrators to disperse. While the payments brought immediate relief, they also raised questions about the government’s previous claims of insufficient funds and the necessity of repeated protests to trigger action. Veteran leaders expressed frustration at the government’s handling of the situation, emphasizing the need for a more proactive and respectful approach to addressing the legitimate financial needs of retired military personnel.
Scrutiny of the Military Pensions Board and Calls for Transparency:
The ongoing controversy surrounding military pensions has brought increased scrutiny to the operations of the Military Pensions Board. In December 2023, the Senate announced plans to investigate the board over allegations of financial mismanagement. Concerns were raised regarding the board’s budget, its operational efficiency, and the accurate accounting of retirees receiving payments. The proposed N20 billion allocation for the construction of a new office building and renovations further fueled questions about the board’s financial priorities. The increased budgetary allocation for 2025, likely linked to the minimum wage adjustment, is seen as a positive step, particularly with the anticipated N32,000 increment in monthly pensions for retirees. However, the focus remains on ensuring effective and timely disbursement of these funds to avoid a recurrence of past issues.
Broader Pension Challenges and the Search for Sustainable Solutions:
The challenges faced by military retirees reflect broader issues within Nigeria’s pension system. In November 2024, retirees from the Contributory Pension Scheme also protested at the Ministry of Finance, highlighting delays in the payment of pension arrears. The Minister of Finance acknowledged the outstanding payments and promised to clear the backlog, even suggesting exploring capital market options to raise the necessary funds. The 2025 budget includes allocations for pension increment arrears, the Pension Protection Fund, arrears from a 33% increase in pension rates, and civilian pensions, indicating the government’s awareness of the widespread need for improved pension management and timely disbursements.
Moving Forward: Ensuring Accountability and Sustainable Pension Management:
The increased budgetary allocation for military pensions in 2025 represents a crucial step towards addressing the legitimate concerns of retired military personnel. However, the true test lies in the government’s ability to ensure timely and efficient disbursement of these funds. Continued transparency and accountability within the Military Pensions Board are essential to build trust and prevent future protests. Furthermore, the government must develop long-term, sustainable solutions to address the broader challenges within Nigeria’s pension system, ensuring that all retirees receive their entitlements promptly and without undue hardship. This requires not only adequate funding but also streamlined processes, efficient administration, and a commitment to prioritizing the welfare of those who have served the nation.
