The Pension Transitional Arrangement Directorate (PTAD), responsible for managing the pensions of retired federal workers in Nigeria, has disbursed N1.18 billion in pension arrears between 2020 and 2024. This sum, tracked through BudgIT’s GovSpend platform, represents a significant effort to address the longstanding issue of unpaid pension liabilities accumulated over years. The yearly disbursements fluctuated, peaking in 2023 at N591.5 million, a substantial increase from the N152.8 million paid in 2020. While 2021 and 2022 saw lower payments of N59.08 million and N39.26 million respectively, PTAD disbursed N343 million in 2024, demonstrating a continued commitment to reducing outstanding arrears. These payments aimed to provide financial relief to thousands of retirees across various sectors, including university staff, civil servants, and former employees of defunct government entities like the Nigeria National Shipping Line and National Telecommunications (NITEL).
The breakdown of the disbursed funds reveals the diverse range of beneficiaries. Retired permanent secretaries, accountants general, and staff from various federal ministries and agencies received payments, some amounting to millions of Naira. For instance, between July and October 2023, over N92 million was paid to retired accountants general and permanent secretaries. Furthermore, in April 2024, a substantial sum of N17.3 million was disbursed to settle arrears owed to former NITEL workers. This targeted approach signifies PTAD’s efforts to address specific backlogs across different sectors of the public service and provide some measure of financial security to these retirees.
Despite these efforts, concerns persist among pensioners regarding the adequacy and timeliness of the payments. While the N1.18 billion disbursement represents a positive step, it has not fully addressed the accumulated arrears, leaving many retirees still awaiting their due payments. This has led to continued advocacy and protests by pensioner groups, highlighting the ongoing challenges faced by those who have dedicated their careers to public service. The discrepancy between the funds disbursed and the total outstanding liabilities underscores the need for a more comprehensive and sustainable solution to address the pension crisis.
Adding to the complexity of the situation is the issue of consequential adjustments to pensions following the implementation of the National Minimum Wage (Amendment) Act, 2024. Pensioners under the Contributory Pension Scheme (CPS) have voiced their concerns about being excluded from the pension increments granted to other retirees. Sylva Nuatawu, the National Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme Sector, has been particularly vocal in demanding a N32,000 pension increment for CPS retirees, arguing that they are entitled to the same benefits as their counterparts under other pension schemes. The union has also raised concerns about the delayed release of funds for accrued rights, further highlighting the financial hardships faced by retirees.
Nuatawu’s statements reveal the depth of the problem. He pointed out that CPS retirees who retired over 20 months prior, starting from March 2023, were yet to receive their retirement benefits. This delay, coupled with the exclusion from pension increments, has created significant financial strain on these individuals. While the union acknowledged the release of three months’ worth of accrued rights following a protest at the Office of the Accountant-General of the Federation in October 2024, they stressed the remaining backlog of 18 months, emphasizing the ongoing need for government action. This highlights a critical gap in the current pension system and the urgent need to streamline processes and ensure timely disbursement of benefits to all eligible retirees.
The government’s response to these concerns has included the release of additional funds. In January 2024, the National Pension Commission (PenCom) announced the release of N22 billion for the accrued pension rights of retirees in Ministries, Departments, and Agencies (MDAs) under the CPS. This disbursement, channeled through the Office of the Accountant-General of the Federation, aimed to address the backlog for retirees between October 2023 and January 2024. PenCom clarified that the funds were deposited into the Retirement Benefits Bond Redemption Fund Account at the Central Bank of Nigeria and also addressed the accrued rights of deceased employees, ensuring that their beneficiaries received the due payments through their respective Pension Fund Administrators (PFAs). While this injection of funds demonstrates a commitment to addressing the issue, the existing backlog and ongoing concerns raised by pensioners indicate the need for continuous monitoring and further action to fully resolve the pension crisis. The reported figure of over N193 billion in outstanding pension liabilities across federal and state governments underscores the magnitude of the challenge and the need for comprehensive reforms to ensure the long-term sustainability of the pension system.
