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Nigerian Retirees Suffer Amidst Government’s N250 Billion Pension Debt

Nigerian Retirees Suffer Amidst Government’s N250 Billion Pension Debt

Thousands of retired civil servants in Nigeria are enduring severe financial hardship as the Federal Government struggles to clear a N250 billion backlog in unpaid pensions. Many retirees, some of whom served the nation for over three decades, have been waiting years for their entitled benefits, leaving them in dire conditions.

Yomi Gbadamosi, who retired two years ago after 30 years in the federal civil service, says he regrets his years of service. He struggles daily to afford basic needs, relying on his children for support. “I served my country, but now I can’t even feed myself,” Gbadamosi lamented.

Mabel Adarabioyo, another retiree, has faced a similar ordeal. After retiring in 2021, she has yet to receive her pension. “It’s hard to believe this is the reward for serving Nigeria,” she said.

The delays are primarily due to the government’s failure to pay accrued pension rights—benefits earned before the Contributory Pension Scheme (CPS) began in 2004. Without these payments, Pension Fund Administrators (PFAs) cannot disburse pensions, leaving retirees without the financial support they were promised.

The Nigeria Union of Pensioners (NUP) has highlighted the gravity of the situation, revealing that some pensioners receive as little as N500 to N3,500 per month. Alhassan Musa, NUP Secretary for Kaduna State, described the plight of pensioners, particularly in the southern and oil-producing regions, as dire. Despite substantial federal allocations to these areas, pensioners are left to survive on meager payouts.

In contrast, some northern states, like Kaduna, have implemented a minimum pension of N30,000, providing some relief to retirees. However, the vast majority continue to suffer, with delays in pension payments exacerbating their hardships.

Efforts by the Federal Government to address these issues have been slow. In May 2024, the government ordered the computation of accrued pensions for current employees to plan for future payouts. However, with the 2024 budget allocation for pensions reduced by over 20%, there is growing concern that the delays will persist.

To alleviate the suffering, the NUP is advocating for a 50% increase in the minimum pension, ensuring that no retiree receives less than N70,000 per month. This adjustment, they argue, is crucial to meet the rising cost of living and align pensions with the national minimum wage.

As retirees continue to wait for their rightful pensions, their stories serve as a stark reminder of the urgent need for reform in Nigeria’s pension system. Without swift action, many who dedicated their lives to public service may face an uncertain and precarious future.

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