The Nigeria Union of Pensioners (NUP) disclosed that some retirees in the country are receiving as little as N500- N3500 per month as their pension.
The stark reality highlights the financial struggles faced by those who have dedicated their working lives to public service.
Alhassan Musa, the NUP Secretary for Kaduna State, highlighted the dire situation in an interview with the News Agency of Nigeria (NAN).
Musa expressed deep concern over the precarious circumstances many pensioners find themselves in.
“These individuals sacrificed their lives and service for the nation, yet they are now left to survive on paltry sums,” he lamented.
More insights
Musa pointed out that the situation is particularly severe in some southern and oil-producing states, despite these regions receiving substantial allocations from the federation account.
In contrast, he noted that pensioners in some northern states and the Federal Capital Territory (FCT) are comparatively better off, receiving between N3,500 and N18,000 monthly.
“The worst affected are pensioners in most of the Southern and oil-producing states in spite of getting fat allocations from the federation account.
“The condition of pensioners in some Northern states and the FCT is far better up, as some of them received between N3,500 and N18,000 monthly pension”.
However, Musa acknowledged that Kaduna State stands out as an exception in the northern region.
Under the administration of former Governor Nasir El-Rufa’i, the state implemented a minimum pension of N30,000 in 2020, setting a benchmark that other states have yet to follow.
What to know
To address the growing economic challenges faced by retirees, Musa advocated for a 50% upward revision of the minimum pension. He stressed that this increase is essential to align with the current socio-economic realities in Nigeria.
“Even when the national minimum wage was N30,000, we proposed a 50% increment in pensions. Now, with the new N70,000 national minimum wage, this adjustment is even more critical,” he stated.
Musa also urged the Federal Government to ensure that no pensioner receives less than N70,000 monthly, aligning pension payouts with the new minimum wage for workers.
“If workers are receiving a minimum salary of N70,000, pensioners should enjoy the same benefits. The minimum pension should be at par with the national minimum wage,” he added.
In a call to action, Musa urged Governor Uba Sani to follow in the footsteps of his predecessor, El-Rufa’i, by being the first governor to implement the N70,000 minimum pension.
Challenges faced by workers who retired
- He further highlighted the significant challenges faced by workers who retired under the contributory pension system, many of whom have been unable to access their benefits for up to a decade.
- According to him, many retirees, even under the federal government, are still waiting for their accruals to be credited to their accounts.
- He noted that under normal circumstances, a worker should be placed on pension within three months of retirement and receive their lump sum promptly.
- Musa attributed the delay to the failure of Ministries, Departments, and Agencies (MDAs) to remit monthly contributions to individual workers’ accounts as required.
- He absolved Pension Fund Administrators (PFAs) and the Pension Commission (PENCOM) of blame, pointing instead to systemic inefficiencies within the government.
