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Nigerian Police proposal to exit from contributory pension a huge risk

The Pension Fund Operators Association of Nigeria (PenOp), has expressed concerns over proposals from the Nigeria Police Force (NPF), to exit the Contributory Pension Scheme (CPS) to Defined Benefits Scheme (DBS).

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Mr Oguche Agudah, the Chief Executive Officer of PenOp, voiced the concern on Tuesday in Abuja during a public hearing on a bill for an act to establish a police pension board.

He said that the CPS operates on a pre-funded model with both employees and employers contributing a mandatory percentage of the employee’s salary.

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Agudah said that usually, a minimum of eight per cent from the employee and 10 per cent from the employer, totaling a minimum contribution rate of 18 per cent, is usually gathered.

He said that either party had the latitude to contribute a higher percentage, which allows pension funds to accumulate and be invested for future payouts.

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Agudah said that the National Pension Commission (PenCom), as of September, had a total pension assets, under the CPS, that had exceeded ₦20 trillion (approximately $12 billion),

He said that PenCom had ensured that the funds were not solely reliant on government budgets, thus reducing vulnerability to fiscal constraints.

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Agudah said that the transitioning to the DBS would not solve the police’s concerns.

“It will, rather, create deeper financial and operational challenges for the country,” he said.

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He said that the CPS had proven to be a transparent, sustainable and resilient system for managing pensions, benefiting both retirees and the broader economy.

Agudah said that reverting to the DBS model, which relies on government budgetary allocations, would lead to fiscal unsustainability and delayed payments for pensioners.

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“Moving the police out of the CPS will require a staggering N3.5 trillion annually to fund pensions for approximately 400,000 personnel, in a budget already burdened by deficits. This is simply unsustainable.

“It will also divert resources from other critical needs, including minimum wage adjustments and public services,” he said.

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Agudah said that pension funds under the CPS are currently invested in bonds, infrastructure and other critical sectors that contribute to the country economic growth.

He said that unwinding the investments to accommodate a DBS for the police would erode the value of assets and destabilise the financial system.

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Agudah said that the CPS currently holds over N21 trillion in assets, and remains a critical component of the country’s economic infrastructure.

He said that maintaining the police within the CPS would ensure long-term sustainability, equity and economic stability.

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Agudah said that setting a dangerous precedent was not good.

“If the police exit the CPS, other public sector groups may demand similar transitions, fragmenting the pension system and undermining reform efforts.

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“And our key aim and our key goal is to ensure that all pensioners are paid on time, all pensioners have a living pension, and everybody gets their pension on time.

“What we heard at the hearing is actually a joy to us because what we are seeing is that even the sponsor of the bill is on the path that it is not really the CPS that is the problem of the police. It is the welfare.

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“So, what we have said is, if your salary is small, your pensions will be small,” he said. (NAN)

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BREAKING ; Atiku’s Son dumps PDP defects to APC, vows to work for President Tinubu’s reelection

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BREAKING ; Atiku’s Son dumps PDP defects to APC, vows to work for President Tinubu’s reelection

The Son of Abubakar Atiku Abubakar, former Vice President and 2023 Peoples Democratic Party (PDP) presidential candidate, Alhaji Atiku Abubakar, dumped the PDP and pledged to work for President Bola Ahmed Tinubu’s re-election in 2027.

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Abubakar, popularly known as Abba, formally announced his defection to the APC at the National Assembly, where he was received by the Deputy President of the Senate, Senator Barau Jibrin, with APC leaders from the North-East.

Party leaders described the move as a significant boost to the APC’s consolidation efforts ahead of the next general election, given Abba’s political network and grassroots organisation.

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Announcing his resignation from the PDP, Abba said the decision was informed by his conviction in the leadership style of Senator Barau and the policies of the Tinubu administration.

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Eight persons killed, others injured in another fatal road accident

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Eight persons killed, others injured in another fatal road accident

Eight persons died while three others were injured in a road traffic crash along the Potiskum–Dogon Kuka carriageway in Yobe.

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The Yobe Sector Commander of the Federal Road Safety Corps (FRSC), Mr Andrew Longkam, confirmed the incident on Thursday.

He said the crash occurred around Gaggaba on the Potiskum–Dogon Kuka axis at about 12:40 hours.

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“Preliminary reports from Dogon Kuka Unit Command show the incident was promptly reported to the corps,” Longkam said.

FRSC operatives arrived within five minutes, enabling swift rescue, evacuation of victims, traffic control, road clearance and prevention of secondary crashes.

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The crash involved a white Howo trailer, registration DAL 963YY, and a white Mitsubishi Canter, registration NNR 437XA.

“Twelve adult males were involved, with eight fatalities and four rescued, including three injured and one unhurt,” he said.

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The injured and deceased were taken to Government General Hospital, Dogon Kuka, where the injured received prompt medical attention.

Longkam said the FRSC tow truck cleared the obstruction, restored traffic flow and notified the Police Motor Traffic Division in Dogon Kuka.

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“Preliminary findings indicate the Mitsubishi Canter, suspected to excessive speeding, committed a route violation and crashed into the trailer,” he said.

He said excessive speed and route violation were suspected causes, adding that investigations were ongoing to determine the exact circumstances.

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The sector commander urged motorists to avoid speeding, route violations and unsafe practices, assuring continued enforcement, emergency response and public education across the state. (NAN)

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Atiku finally breaks silence after his Son defects to APC

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Atiku finally breaks silence after his Son defects to APC

Former Vice President and Peoples Democratic Party (PDP) presidential candidate, Atiku Abubakar, has addressed his son Abba Abubakar’s decision to join the All Progressives Congress (APC), describing it as a personal choice.

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In a statement posted on his X handle, Atiku said, “The decision of my son, Abba Abubakar, to join the APC is entirely personal. In a democracy, such choices are neither unusual nor alarming, even when family and politics intersect.”

He added, “As a democrat, I do not coerce my own children in matters of conscience, and I certainly will not coerce Nigerians.”

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The former vice president also highlighted his concerns about the ruling party, saying, “What truly concerns me is the poor governance of the APC and the severe economic and social hardships it has imposed on our people.”

“ I remain resolute in working with like-minded patriots to restore good governance and offer Nigerians a credible alternative that brings relief, hope, and progress.”

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