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WHO WANTS NIGERIAN PENSIONERS DEAD?
By Comrade Gbenga Olowoyo milr fcia fimpa JP
“Count your life by smiles, not tears. Count your age by friends, not years”.
The life of Nigerian pensioners after service to their fatherland in whatever capacity or at whatever level is expected to depict above quoted perspective from an anonymous but in the Nigeria epicentre , work after service , the reverse is always the case
In Nigeria, life after Service be it in the Public or Private sectors, it is always very miserable, entangled unimaginably tough , full of despair , disappointment and disillusionment due to total collapse in our societal ecosystem that supposed to look after the life of retirees after serving their fatherland with younger active part of their lives.
The wide range of research carried out on this critical sector of human existence revealed a very high rate of people that occupied this space, had attested to the fact that our system has a very wicked heart and distasteful disposition to retirees in terms of their rights, privileges and Welfare.
There is no doubting the fact that Federal Government has not pretended not to have fair love and deeper thoghts for pensioners which culminated into the movement from defined benefits scheme to Contributory Pension Scheme (CPS) policy.
We are not oblivion of the fact that Federal Government enacted the Contributory Pension Scheme in 2004 via Act of Parliament to replace the defined benefits scheme and it was further re- enacted vide Pension Reform Act 2014 to ensure a fair deal for pensioners by increasing the payable contributions of employer from 8% to 10% and retain contributions by employees at 8%
The increasing concerns of workers are premised on the insincerity of the employers in the proper deductions from employees salaries and improper contribution from employers and non remittance of deductions from workers to appropriate Pension Fund Administrators (PFAs) which has bedeviled majority of the state governments and private sector players .
For instance , at the beginning of the implementation of CPS scheme in 2004 from the old defined benefits scheme, many state governments did not show sincere commitment to the scheme.
As at 2024 to 2025 majority of the states across the country are in default and non compliant to the scheme in line with the provisions of the pension reform Act 2014.
Sadly, findings revealed by available records that only 11 States have fully implemented the CPS scheme , leading this set of states is Lagos State Government which has continued to be a role model and good reference point, other 25 states across the country are in default, either still operating under old defined benefits scheme without adequate and steady funding or operating the contributory pension scheme and decided not to pay required counterpart contributions, and even refused to remit the portion deducted from workers, the leading states in this category by available findings are :Abia,Adamawa, Bauchi, Bayelsa, Enugu, lmo,kogi, Niger, Ogun and Rivers States ( these facts can be controverted by the listed States)
As matter of fact, the standard of living of Nigerian pensioners is that of delusion and hopelessness because many state and local governments pensioners received as low as (N3,000) three thousand Naira monthly which is very unbelievable even with the present economic realities in Nigeria.
*The death rates of pensioners*
As a matter of serious concern, the value of life in Nigeria has abysmally gone awry with metaphysical fear, why has it reduced to this level where and when all tiers of governments in Nigeria has no value for the lives of all strata of Nigerians?
For instance, the Bureau of Public Service Reforms (BPSR) revealed in recent time that over 49% of Public Servants die after retiring from the Public Service across the country, the reasons for this high rate of death are not far fetched and are not limited to the underlisted reasons:
*Economic distress
*Severe psychological and emotional trauma
*Non payment of Gratuities and retirement as and when due
*Non payment of outstanding pensions as high as over (80) eighty months in some states
*Total collapse , outright inadequate and non availability of health support to retirees
*Lack of finances for basic needs for their survival
*Untimely death while waiting in queues during physical verifications of the frail pensioners and to travel long journeys for this purpose
*Poor management of pension fund generally by those appointed to manage the fund.
*Bad sentiment on pensioners by our Leaders*
In recent past, a governor in one of the states in the country, , in the full glare of television cameras, said that it was better for him to take care of current workers in his state than to devote state resources to pay gratuities to those who were already retired from service. This governor never had any paid employment in his life; neither did his parents nor siblings.
A retirement benefit to him was more or less an unwarranted distraction. In that state.
“Also , another State Governor publicly said that he will rather pay those in active service than those that are closer to their graves”
Many retirees died without collecting their entitlements. Current workers are also not that hopeful that they would be receiving their entitlements as and when due on retirement.
This heartless sentiment represents the disposition of various tiers of government in Nigeria with regard to the need to prioritize pensions and Gratuities payment.
*The position of the Nigeria Union of Pensioners (NUP) over the insensitive disposition of government to their plights*
The grievances of the pensioners in Nigeria was further amplified by the Chairman of Nigeria Union of Pensioners, Southwest Zone, Waidi Oloyede, and the Public Relations Officer of the union, Dr Olusegun Abatan at the press briefing held during the union bi-monthly meeting in Abeokuta recently where they lamented the worsening hardship, attributing it to rising energy costs linked to the United States–Iran conflict, which they said has further strained their livelihoods.
They noted that the increase in the price of petroleum products has triggered inflation in the cost of goods and services due to higher transportation expenses, thereby worsening the country’s economic situation.
The pensioners said apart from Oyo State Governor, Seyi Makinde, who approved a N10,000 monthly palliative for workers and pensioners to cushion the effects of the energy crisis, no other state government or the Federal Government has taken concrete steps to alleviate their hardship.
They warned that they might be compelled to institute legal action against some South-West governors over the non-payment of gratuities, which they said have remained outstanding for 15 years or more in some States.
The South West Zone of the Nigeria Union of Pensioners further stated that , “The U.S.-Israeli war has done quite a lot of damage to the global economy, and it has affected us in Nigeria tremendously.
“As I speak, the rate of inflation has skyrocketed as a result of an increase in energy, that is, an increase in petrol, to the effect that many people are finding it more difficult to have a means of livelihood.
“Before the Iranian war, Nigerians were suffering. There is nothing we can put on the table that Nigerians are enjoying from this government. Our situation has now been exacerbated by the war between Israel and Iran.
“It is quite unfortunate that the Nigerian government has not woken up to what should be done for the citizens of this country.
Abatan said the union expected other state governments and the Federal Government to emulate the gesture by supporting pensioners to ease the impact of the economic situation.
“But for those governors who are not taking care of us, we have also decided to take them to court and fight for our rights.
“We have been doing it as elderly citizens, begging and appealing to them, but as far as they are concerned, they don’t care whether the pensioners live or not. So we will soon take them to court,” he said.
*Commendation to the National leadership of Nigeria Union of Pensioners*
It is very expedient to appreciate the commitment of the present National President of the Nigeria Union of Pensioners Comrade Mazi Godwin Abumisi who has shown high level of commitment to the plight of pensioners in Nigeria through his consistent agitation and pursuance of policy that will better the life of pensioners
Consequent upon the efforts of the National leadership of NUP Federal Government approved ₦32,000 monthly minimum pension payment and 20% pension increase
Comrade Abumisi has consistently and actively demands that state governors should settle outstanding pension arrears
It is gratifying to note that Rivers State has commenced the payment of the N32,000 monthly pension payment to pensioners in the consequential adjustments and free medical services.
It is to be acknowledged that President Tinubu’s approval of ₦758 billion in bonds for pension liabilities to clear accrued pension rights, with the above approval which is targeted at 2021 retirees.
The commitment of Kano State government to pay ₦42bn inherited pension debt can not go unmentioned and other State governments
*Reminiscent and Realties on the pensioners experience, expectations and plights*
In the Public Sector, the failure of government to meet the expectation of the pension payment for the retirees has shattered the plans of many as well as inducing economic trauma, which in some cases have led to fatalities.
Stories abound of senior citizens who had collapsed and died while on queues while waiting for their pensions.
while battling debilitating changes to their health and lack of funds to attend to their most basic needs.
It was in a bid to address the non-payment of pensions that the Pension Reforms Act of 2014 was enacted. The act covers both public and private sector employees. The Contributory Pension Scheme (CPS) was introduced to replace the Defined Benefit Scheme (DBS). Under the new regime, both the government/companies industries and the workers themselves are to save up a given amount of their earnings towards building up an accumulated funds reserve which they could fall back on after retirement.
*Sadly, 22 years after the CPS was introduced (2004-2026), only fewer states including – Lagos, Osun, Kaduna, Delta, and the Federal Capital Territory (FCT) among others are paying pensions under the scheme.*
While it is noteworthy that PENCOM has helped to grow the funds as well as a more prudent management but PENCOM is still far from meeting the expectations of retired workers both in the Public and Private sectors,
As of the first quarter of 2025, the total pension assets under the Contributory Pension Scheme (CPS) in Nigeria have grown significantly, with total pension contributions from inception to March 2025 reaching ₦12.24 trillion.
The total assets under management exceeded N20 trillion as of early 2026, driven by high returns on investment.
Regrettably, there are still issues that are yet to be resolved by the government regarding many retired Public Servants. For instance, complications in meeting up with the pension obligations had arisen failure to link those in the old scheme (DBS) with those in the new scheme (CPS). But even after it seems to have been done, the federal and many state governments have failed in remitting deducted sums from workers’ salaries to the Pension Fund Administrators (PFAs). The result is that neither government contributions nor workers’ deducted sums are credited to their accounts with the PFAs. This anomalies is even more prevalent in the private sector where many companies do not remit their counterpart deductions to the PFAs as required by the Pension Act.
While many obstacles have stood in the way of pensioners to access their retirement benefits, the PFAs have been the ultimate beneficiaries of the growing pension assets.
At this juncture, majority of the state government should be very extra careful while listing workers that have spent ten or more years before introducing the scheme on their respective states
In a very clear language, the Pension Reform Act 2014 must be domesticated at the respective states across the country and ensure that workers that have spent ten and above even lesser years must be critically looked into so that the backlash of such action on pension will not be unimaginable.
*Need to increase lump sum payment from 25% to 50% to retired contributors/workers*
The contributors should be allowed to receive lump sum of at least 50% of their money after retirement as against the present 25% as contained in the Pension Reform Act 2014
Those who own the money cannot continue to live in penury while intermediaries feed fat on their sweat. It is therefore time for Pencom to make the pension scheme truly beneficial to the greatest number of pensioners, to enable them plan very well and invest profitably with their money without begging to prevent miserable and untimely deaths after retirement.
*Nigeria Labour Congress NLC, Trade Union Congress (TUC) and Joint National Public Service Negotiating Council (JNPSNC)*
The two Labour centres NLC and TUC should escalate achievable actions that will move Nigerian pensioners from death trap to decent and sustainable long life living .
This year 2026 May Day should be a veritable platform to present an actionable blueprint that will assist Nigerian pensioners to live a better life more than ever before.
Fortunately, this year 2026 May Day theme; “insecurity and poverty: bane of decent work” is very apt, appropriate contemporary and must delve into critical levels of human existence and survival.
Retirement from active service is a sequential phenomenon that must and will be experienced by any mortal be it Public Servants, Private sector workers, small scale industrialists players, political office holders and even “professional politicians”
The Public sector unions under the Joint National Public Service Negotiating Council JNPSNC Trade Union Side should equally give technical support to the two Labour centres in order to address the fundamental sensitive issues affecting pensioners in Nigeria.
*New pension Policy for Federal Public Servants*
At this juncture it is very desirous to appreciate the recent approval granted by the Federal Government via Federal Executive Council approval for the payment of annual salary to retiring Public Servants
The reason behind the approval was to give retiring workers a soft landing in the first year of their post one year retirement life
This policy needs to be domesticated by all the State and Local Governments in Nigeria in order to allow transitional arrangements for workers to move seamlessly from active workers to retiring life experience.
To this end, sudden deaths by retirees will be prevented and equally form part of the strong and sustainable welfare policy for the pensioners by all the tiers of government.
*Suggested solutions to mitigate pensioner’s plight in Nigeria:*
It has become very imperative that Federal, State and Local governments in Nigeria should not relent in ensuring that pensioners are treated with dignity, respect and honour as senior citizens that have contributed unquantifiably to the overall development of the country in their respective callings.
Government should view pensioners as category of people that required unhindered social care for their survival after retirement from the active service
The underlisted solutions were empirically carried out to ensure that the solutions should serve expected purposes because the plight of Nigeria pensioners is not palatable because they live below decent living , especially for those that have served their fatherland with all their sweats,
To this end, all stakeholders in pension management need to critically evaluate the underlisted solutions in order to begin with actionable policy that will achieve the desired goals and objectives:
1. Ensuring Prompt Payment of Arrears & Regular Payments: Decisive executive action is needed to clear all verified, outstanding pension arrears. Ensuring consistent monthly payments and addressing the backlog of unpaid gratuities and pensions is paramount.
Federal government should make available special bail out fund to achieve this intervention purpose with meticulous action plan
2, There is dire and urgent need for the Enforcement of Pension Act & Penalties: Strict penalties must be enforced for organizations that fail to comply with the Pension Act, including failing to remit deductions.
Lip service action against defaulting states, organisations and private sectors have continued to encourage key players not to remit as and when due to PFAs
3, Regular Audits & Transparency: Regular forensic audits of the Pension Transitional Arrangement Directorate (PTAD) and other pension bodies are necessary to eliminate mismanagement, such as diversion of funds, embezzlement among others.
4, Standardization of Pension Rates: Harmonizing pension rates across all states and ensuring they comply with the mandatory 5-year review based on constitutional guidelines.
5, Transition to Sustainable Schemes: Encouraging the shift toward more efficient pension schemes and exploring hybrid systems that enhance security for retirees.
6, . Welfare and Health Support
Healthcare Coverage:
Enrolling all retirees into the National Health Insurance Scheme (NHIS) to address the high cost of healthcare.
Subsidized Services: Providing free or subsidized healthcare, specialized counseling services, and home care support to meet the physical and emotional needs of seniors.
7, Social Inclusion and Recognition:
Establishing social welfare programmes that will provide senior citizens with assistance, including support for basic needs and care for vulnerable elders.
8, Establishment of Welfare Homes: Establishing senior citizen homes in all 774 local government areas, as suggested by studies, to provide care and living facilities. This policy intervention is very common in advanced countries of the world
9, Pre-Retirement Planning & Economic Empowerment
Pre-Retirement Counseling: Implementing training and orientation programs 6–12 months before retirement to help workers understand the processes of accessing funds and prepare for life after work.
Financial Literacy
Training: Teaching, planning, and investment strategies to ensure retirees do not depend solely on their pension income.
10, Encouraging Investment: Encouraging workers to invest in assets and businesses to generate extra income after retirement.
11, Improved Communication Channels: Establishing better communication channels (like dedicated helplines or online portals) between pensioners and agencies to speed up the resolution of issues.
Strengthening Pensioner Unions: Strengthening the Nigerian Union of Pensioners (NUP) to effectively advocate for the rights of its members.
These solutions required a coordinated efforts between the Federal and State governments, organizations like the National Pension Commission (PenCom) National Union of Pensioners ( NUP) and to ensure that retirees are treated with dignity.
Who actually wants Nigerian pensioners dead?
Time to act is now!!!
Solidarity forever!!!
Comrade Olowoyo Gbenga milr fcia fimpa JP is a Trade Unionist, industrial relations practitioner, General Secretary (NCSU), National Secretary, (JNPSNC) and Public Policy Analyst
08033570338 gbengaolowoyo3@gmail.com
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