The Federal Government has announced plans to begin clearing the pension backlog for retired employees under the Contributory Pension Scheme (CPS) starting next week.
Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, disclosed this during a peaceful demonstration by the Nigeria Union of Pensioners Contributory Pension Scheme Sector (NUPCPS) held at the Federal Ministry of Finance in Abuja on Tuesday.
Edun stressed the government’s commitment to addressing these payments within the limits of 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.
Acknowledging the severe impact of the backlog on retirees, Edun assured that addressing their concerns is a government priority.
Edun said there is a coordinated approach involving the Office of the Head of Service, the Minister of Budget, and other stakeholders to systematically reduce the backlog, adding that the government might turn to the capital market to raise funds that would clear the backlog entirely.
“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
“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 emphasised 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.
Mr. Sylva Nwaiwu, National Chairman of NUPCPS, listed ongoing challenges faced by the union, including the exclusion of pensioners from adjustments to the National Minimum Wage.
He added that accrued rights have not been paid for over 20 months, calling on the government to urgently address these issues to alleviate retirees’ hardship.
Mrs. Christiana Ubah, a retiree since 2015, expressed frustration over unpaid pensions despite reports of growing pension fund assets. She said that the Nigerian constitution mandates salary and pension increases every five years, urging the government to honour these adjustments in pension 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,” she said.
Daily Sun
