FG And Four States Face Pensioner Protests Amid N193bn Owed

FG And Four States Face Pensioner Protests Amid N193bn OwedThe backlog of pensions owed by the federal and state governments has surpassed N193 billion, according to findings by The PUNCH. While states like Zamfara, Benue, Kaduna, Kano, and Nasarawa are working to reduce their arrears, the Federal Government still owes over N88 billion in contributory pensions, with many states facing pension backlogs totaling more than N105 billion.....KINDLY READ THE FULL STORY HERE▶

Bunmi Ogunkolade, spokesperson for the National Union of Pensioners, confirmed that the Federal Government has not cleared N88 billion in accrued rights under the Contributory Pension Scheme (CPS) from March 2023 to the present. The CPS, established by the Pension Reform Act of 2004, requires both employees and employers to contribute to a Retirement Savings Account, enhancing the sustainability of pensions.

The 2014 amendment to the law increased the minimum combined contributions from 15% to 18% of monthly earnings. Ogunkolade stated, “The accrued rights of contributory pensioners stand at N88 billion. This is a government debt that needs to be settled.”

A source from the National Pension Commission, who wished to remain anonymous, mentioned that efforts are underway to address the payment of these accrued rights, although the process is not yet advanced. They acknowledged that the delay is due to the government not releasing the necessary funds.

In response to the ongoing delays, pensioners have organized a one-day rally in Abuja on October 23. In a letter dated October 17, 2024, they urged all state chapters and branches to participate in the demonstration at the Unity Fountain, calling for the release of funds and the settlement of outstanding pensions.

Zamfara State has made progress by settling N9.3 billion in pension arrears. Governor Dauda Lawal initiated payments in February and has since disbursed N4.86 billion in nine batches, with additional payments made to local government pensioners.

In Plateau State, the local chapter of the NUP expressed frustration over unpaid pensions and gratuities. Chairman Yimusa Ishaku criticized the state government for not fulfilling Governor Caleb Mutfwang’s promise to clear a N30 billion backlog. He noted that many pensioners are owed significant arrears, some for up to four years.

Meanwhile, the government stated it is working to clear the backlog, with a plan to allocate funds monthly for pension payments. In Benue State, retirees are also awaiting payment of approximately N70 billion in arrears, primarily owed by previous administrations, though the current administration has begun paying current pensions and gratuities.

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