The Federal Government of Nigeria, through the Office of the Accountant General of the Federation (OAGF), recently communicated that the payment of accrued pension rights for beneficiaries under the Contributory Pension Scheme is contingent upon available government funding. A memo signed by Musa Raheem, the Director of Administration, addressed the National Union of Pensioners, stating that allocations for the periods of January to March and April to June in 2024 have been released to the National Pension Commission. In addition to these allocations, efforts are being made to expedite further releases by year-end, with the aim of alleviating outstanding pension liabilities within the Contributory Pension Scheme. This message was conveyed alongside assurances of the Accountant-General’s warm regards.
The situation surrounding unpaid pensions has escalated, as reported by PUNCH, with pensioners threatening to occupy the Ministry of Finance on December 16, 2024, if their 21-month backlog of pension payments remains unpaid. In an effort to voice their grievances, the pensioners previously held a peaceful rally at the Ministry of Finance on November 12, 2024, and expressed appreciation for the Coordinating Minister of Finance and National Economy, Wale Edun, for his “mature and civilized” approach to their concerns. However, they have become increasingly frustrated that despite reassurances from officials, their accrued rights accounts have yet to receive the necessary funds.
The retired public workers are demanding immediate payment of the 21 months’ worth of accrued rights owed to them from March 2023 to November 2024. Furthermore, they are seeking compensation for unpaid pension increments, specifically a 15% increase from 2007, a 33% increase from 2010, and a boost ranging from 20% to 28% in 2024. This delay in payments has prompted the pensioners to call on the Federal Government to prioritize the establishment of a state of emergency in the Contributory Pension Scheme sector, thereby compelling the government to address and clear all outstanding liabilities before their proposed deadline of December 16, 2024.
The leadership of the pensioners’ union has emphasized that their actions are backed by a strong mandate from their members across the nation. They assert that the collective will of the pensioners is robust, and there will be no retreat on their demands for fair compensation and prompt payment of the owed pensions. This mobilization reflects a widespread discontent with the government’s management of pension funds and the financial insecurity that many retirees face as a result of the unpaid backlogs.
Given the escalating tensions and pressure from the pensioners, the government faces a critical juncture. The timing of the protests and the call for emergency measures suggests that the situation may become more volatile as the deadline approaches. The pensioners’ demands not only call for immediate disbursements but also signal a growing movement advocating for accountability and better management of pension funds in Nigeria. Their commitment to protest could prompt government officials to take the necessary actions to mitigate further unrest.
In summary, the ongoing dispute regarding unpaid pensions under the Contributory Pension Scheme reflects deeper issues within the management of governmental resources. The Federal Government’s acknowledgment of the funding limitations, juxtaposed with the pensioners’ urgent demands, creates a scenario that requires immediate and strategic intervention. The pensioners’ determination to assert their rights underscores the significance of ensuring that retirees receive the financial support they are entitled to, bringing to light critical issues of accountability and transparency in the public pension system.
