Pensioners threaten nationwide protests as Federal Govt,, States owe billion in backlog

The total pension backlogs owed by federal and state governments have exceeded N193 billion.

While states such as Zamfara, Benue, Kaduna, Kano, and Nasarawa have started to tackle these outstanding payments, the Federal Government still owes over N88 billion in contributory pensions. Moreover, several states are facing pension backlogs that surpass N105 billion.

Bunmi Ogunkolade, spokesperson for the National Union of Pensioners, confirmed to The PUNCH that the Federal Government still owes N88 billion in accrued rights under the Contributory Pension Scheme (CPS) since March 2023.

The CPS, established by the Pension Reform Act of 2004, mandates joint contributions from employers and employees into a Retirement Savings Account, aimed at creating a more sustainable pension system.

The initial combined contribution rate was set at 15 percent of an employee’s monthly earnings. An amendment in 2014 raised this minimum to 18 percent and introduced stricter compliance regulations.

Ogunkolade stated, “The total accrued rights for contributory pensioners since March 2023 is N88 billion. This is a debt owed by the government that needs to be resolved.”

A source from the National Pension Commission, who preferred to remain anonymous, indicated that steps are being taken to address the outstanding payments. They acknowledged the government’s failure to release necessary funds but noted that progress has not yet reached advanced stages. The government is reportedly finalizing processes to facilitate the payments to retirees.

In response to ongoing frustrations over delayed payments, pensioners have organized a rally set for October 23 in Abuja. A letter from the NUP to all state chapters announced this peaceful demonstration, aimed at pressing for the release of funds to cover outstanding payments.

The rally is scheduled to take place at key locations in Abuja, including the Office of the Accountant-General and the National Assembly.

The letter invited state and sector leaders to support the rally by sending delegates, particularly those who could contribute financially.

In Zamfara State, Governor Dauda Lawal has made significant strides in settling pension arrears, with N9.3 billion already paid.

His administration began addressing backlog payments in February and has processed payments to both state and local government retirees.

Zamfara’s government has cleared N4.86 billion in gratuities, benefiting over 2,600 verified pensioners from various retirement years. Meanwhile, N4.497 billion has been paid to local government pensioners.

In Plateau State, the NUP has criticized the government for its failure to address pension and gratuity payments, with union Chairman Yimusa Ishaku expressing disappointment over unfulfilled promises to clear a N30 billion backlog. He noted that many pensioners are owed substantial amounts, with some waiting as long as four years for payments.

However, the governor’s spokesperson, Gyang Bere, assured that the administration is committed to resolving these issues, explaining that while the N30 billion figure was mentioned, actual funds were not immediately available. A structured plan to allocate funds monthly for pension payments is in place.

In Benue State, pensioners face a staggering N70 billion in arrears from previous administrations. NUP Chairman Mike Vembe emphasized that while the current administration is paying ongoing pensions, it has yet to address the substantial arrears accumulated prior to its term.