The Federal Government has announced plans to begin addressing the pension backlog for retired workers under the Contributory Pension Scheme (CPS) starting next week.
This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, during a peaceful rally organized by the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS) at the Federal Ministry of Finance in Abuja on Tuesday.
The demonstration drew attention to long-standing grievances among retirees over unpaid contributions. During his address, Edun emphasized the government’s determination to make payments with the funds available under the current budget.
“We will start next week to pay everything that we can under the current budget as approved by the National Assembly,” he stated,
He acknowledged the backlog in contributions, which has severely affected retirees, assuring pensioners that their needs are a priority.
Addressing concerns
To tackle the backlog sustainably, Edun revealed a coordinated effort involving the Office of the Head of Service, the Minister of Budget, and other stakeholders to address the backlog.
“There has been a committee under the Office of the Head of Service which has met with the Minister of Budget and myself. We have a plan for dealing with the backlog under the Contributory Pension Scheme (CPS).
“We are committed to paying it. It has to be paid this year. We are committed to doing that starting from next week,” Edun explained
He also suggested a potential financial strategy of going to the capital market and raising a means that clears the backlog
“It’s going to be a question of going to the capital market and raising an instrument that allows that backlog to be cleared once and for all,” he said
Edun expressed regret that pensioners had to stage a rally to bring attention to their plight. He emphasized the government’s commitment to their well-being and pledged accessibility to address their concerns.
“I am not happy that you have had to take this step and I assure you that any time that you or your leaders seek an audience with me, I will be available in the office.
“I was not aware of the Nov. 11 deadline, otherwise, I would never have allowed a situation like this
“In spite of your age, and your situation in terms of cost of living, it costs money to come here. I would have avoided that as much as I could,” he stated.
Minimum wage adjustments
- The National Chairman of NUPCPS, Mr. Sylva Nwaiwu, highlighted the union’s ongoing challenges, including the exclusion of pensioners from adjustments to the National Minimum Wage.
- He also stressed that accrued rights had not been released for over 20 months. He called on the government to address these gaps urgently to prevent further hardship for retirees.
- Mrs. Christiana Ubah, who retired in 2015, expressed frustration over the lack of pension payments despite reports of increased pension fund assets.
- She also pointed out that the Nigerian constitution mandates salary and pension increases every five years and called for this to be reflected in their payments.
“Among us here are people that retired since March last year and have not been paid a kobo. look at how harsh the economy is because of our leaders.
“We do not have anything to live on now, every year they will tell us in the media that pension fund assets have increased, so why are pensioners not paid?
“We have a constitution in the country that every five years salaries will increase and pensions will increase too. We want this reflected,” Ubah said
