Retirees in Anambra, Ebonyi, and Enugu States have lamented the delays in the payment of their pension even as they appealed to the Federal Government to remove the bureaucratic bottlenecks that cause the delays affecting retired civil servants across Nigeria.
In a survey conducted by the News Agency of Nigeria (NAN), retirees expressed frustration over the long wait for their pensions, with some waiting for up to two years post-retirement.
Many retirees reported receiving only partial lump sum payments—50% or 25%—after several years of waiting, despite consistent pension contributions during their service.
The retirees’ struggle
Mr. Julius Okafor, who retired in 2022, shared his struggles, stating that he has yet to receive his gratuity or monthly pension.
“I have submitted all the necessary documents but my pension administrator is yet to pay me. My friends and relatives had been the ones supporting me and it is painful that senior citizens like us are treated like this,” he lamented.
- “After serving my country for 35 years, I’ve been left to live from hand to mouth,” Okafor bemoaned, appealing to the government to remove the bureaucratic hurdles causing delays in pension disbursement.
- Another retiree, Mr. Emmanuel Nwaiwu, who retired in 2024, urged the Federal Government to establish a system where retirees are immediately paid their lump sums upon retirement, followed by regular monthly pension payments.
- He highlighted the growing backlog as more workers retire, further complicating the payment process.
Overhauling PENCOM
In Ebonyi, some stakeholders in Abakaliki, have called for the need to overhaul the National Pension Commission (PENCOM) to effectively improve the contributory scheme and overcome delayed payments of benefits to retirees in the country.
Dr Mathew Odono, Retired Director of the National Orientation Agency (NOA), Ebonyi Office, said that the situation of getting the payment was worrisome.
Odono, who retired in March 2024, said he was yet to get either the gratuity or the monthly pension.
“It’s a worrisome situation, I retired in March 2024 and as I am talking to you, I have never gotten a kobo. We applied during the period of retirement but up till today, we have yet to get something.
“The federal government should look into this issue and overhaul the whole processes, especially the PENCOM in order to save the retirees,” the former Director said.
- Mrs Happiness Okonkwo, a Legal Practitioner supported the call for overhauling the pension commission and urged for the review of the Pension Reform Act, 2024 for the future of the civil servants.
- Okonkwo decried the situation, saying that it was wrong to hoard someone’s savings after the 35 years of meritorious service.
Cause of delay
Zonal Coordinator of Leadway Pension Administrator, Dr. Arinze Udechukwu, attributed the delays to the government’s slow remittance of pension funds to administrators.
- He explained that under the Pension Act, retirees are entitled to receive a portion of their pension as a lump sum, with the remainder spread out as monthly payments.
- In addition, Udechukwu advised civil servants to take proactive steps by joining pension schemes that offer guidance on savings and investments to secure their financial future.
- He also recommended that civil servants learn a trade while still working, as it would be difficult to pick up a vocation after retirement.
- Lawyer and rights activist Mr. Julius Ezema urged the government to mandate pension fund administrators to process pensions six months before a civil servant’s retirement, ensuring prompt payment of benefits.
Ezema stressed that timely pension payments would prevent retirees from enduring undue hardship and suffering, pointing out that many retirees face serious financial difficulties—or even death—while waiting for their entitlements.
What you should know
- In 2004, the Federal Government of Nigeria enacted the Pensions Reform Act (PRA 2004) which introduced the Contributory Pension Scheme (CPS).
- The act made it mandatory for employers and employees in both the public and private sectors to contribute towards the retirement benefits of employees.
- The pension administration in Nigeria had since then, faced with inadequate funding, poor management, low coverage, lack of awareness, and weak regulatory framework.
