PRIORITISING THE WELFARE OF PENSIONERS

 Kazeem Akinmosa commends Lagos State for showing good example

Lagos State is different. While it may not be the best state in Nigeria on every index of measuring the good life, overall, it is doing remarkably well. Recently, the Lagos State governor, Babajide Sanwo-Olu, took to social media to share some good news for Lagos workers. 

“Hello Lagos,” Sanwo-Olu began on X, formerly known as Twitter. “I’m happy to share some news with you that I hope will put smiles on the faces of families. Next week, we’re set to disburse N3.1 billion under the Contributory Pension Scheme to over 1,000 retirees who have served our state tirelessly. Your sacrifices have not gone unnoticed. It is pertinent to take note of the fact that in the lifetime of our administration, we have disbursed over N60 billion as pension to over 17,000 retirees. This achievement fills us with pride. Prioritising the welfare of those who’ve shaped Lagos’ history is not just a commitment; it’s our legacy. Your trust is paramount, and together, we’re constructing a Lagos that champions its own. A heartfelt thank you for your unwavering dedication. Your contributions form the very foundation of our vibrant state. There is so much more to be done, and we will continue to strive to achieve more. Let’s keep building a stronger, caring Lagos together.”

The ‘next week’ Sanwo-Olu referred to in his tweet started on February 11, 2024. However, in the midst of this good news, it is sad to remember that in many other states and even in the private sector, many workers do not have a pension or are sure of any pension. Prior to the Contributory Pension Scheme (CPS) which began in 2004 with the Pensions Reform Act (PRA 2004), nearly all Nigerian pensioners suffered. The workers, many who had spent the most useful part of their lives in paid employment often ended as the dregs of society. Seeing them queue in the sun and rain in some sort of verification exercise posed a sad sight. It was sadder that some pensioners actually died on such queues while others died elsewhere because of lack. All for a pittance. 

Hence, when this present scheme made it mandatory for employers and employees in both the public and private sectors to contribute towards the retirement benefits of employees, it was viewed with relief. According to the Nigeria Pension Commission (NPC), employees are expected to contribute a minimum of 8% of the sum of their basic salary, housing allowance, and transport allowance while employers are to contribute 10% of the same sum. Sadly, not many employers, including some state governments have been contributing their own quota towards the scheme. 

According to an October 2023 national newspaper report, NPC listed only six states – Lagos, Osun, Kaduna, Ekiti, Edo, and Ondo – and the Federal Capital Territory as fully implementing the Contributory Pension Scheme as of the end of June 2023. Others continued under the old pension scheme called Defined Benefits Scheme (DBS).

“In some states, pensions are being owned for upward of 35 months,” said the Director of the Centre For Pension Rights Advocacy, Ivor Takor, in the same report, expressing concern that 19 years after the pension reforms, there were still states in the country that had no laws in place to protect the pension rights of their civil servants.

“The backlog of gratuities is almost a forgotten case, while death benefits payable to the next-of-kin of the deceased public servants are not mentioned.

“The sad and disheartening situation is that some of these states have life pension laws in favour of former governors and former deputy governors, which guarantee that these former political office holders maintain lives of luxury through generous pension and other benefits.”

Hence, the recent news from Governor Sanwo-Olu that the state would begin payment of N3.1 billion to over 1000 pensioners under the CPS is cheering.

Ordinarily, what Sanwo-Olu did in Lagos should not warrant any media exposure. It should be a given. But for a country that is grappling with the basics in the midst of plenty being misappropriated, it is exceptional what the Lagos State government has achieved. Hence, the vuvuzela. It is common knowledge that few states have more or less neglected pensioners, leaving them to their fate and a slow and hard death. This is not right. But that is the sad reality.

In many states across the country, it is one tale of woe or the other concerning the plight of pensioners. For instance, in Abia State, Governor Alex Otti in January 2024, had apologised that his administration could not pay the pensioners their arrears by December 2023 as promised because a digital verification had unfolded that the state owed about twice the pension that was thought as at May 2023 when he assumed leadership of the state. As at today, the Abia pensioners have still not been paid. Also, according to a Vanguard newspaper report in October 2023, 21 states owed N790bn inherited pensions and gratuities. In the report, Rivers State led the states with a backlog of unpaid pensions and gratuities to the tune of N119 billion while Benue State was second with N100 billion. Though as at that time, the report said that in Lagos, “no fewer than 10,000 retired civil servants are yet to receive their pension rights worth over N10 billion,” it also stated that, “the state government has disbursed N52 billion to pensioners in the state civil service from 2019 till date.” It is however, instructive that in June 2022 PenCom report, Lagos committed to paying N2bn monthly to clear the outstanding accrued rights of its pensioners. And excepting time lags for checks and verifications of retirees, the state has religiously paid gratuities and pensions to its retirees.

In fact, it has become a tradition in Lagos to take seriously the welfare of her retirees. In a February 2022 report published on www.pensionnigeria.com, the Director-General of Lagos State Pension Commission (LASPEC), Mr. Babalola Obilana, said just this.

“In spite of numerous local and global challenges, Lagos State government has made continuous monthly payments a priority to ensure that retirees access their benefits as soon as possible,” said Obilana, during the 91st batch Retirement Benefit Bond Certificate presentation to Lagos State retirees.

“The state government, in appreciation of its dedicated workforce, has consistently prioritised pension contributions in the state’s annual budget. We are happy to note that Lagos State is one of the few states that does not owe monthly pension contributions.”

Of course, given the rocky economic frontier of the country over time, it cannot be rosy for all states, especially the less viable ones, to pay retirees as at when due, but they must be financially creative and strive to copy Lagos in doing the best they can to ameliorate them from the vagaries of age-related conditions and an ever- uncertain economic knock. Retirees should not have their gratuities or pensions delayed or denied. Here’s kudos to Lagos for showing a good example.

Akinmosa writes from Lagos