President of the Nigerian Labour Congress (NLC) Comrade Joe Ajaero has called for a return to the previous pension scheme.
Speaking at the 2024 National Pre-retirement Summit organised by XEM, Comrade Ajaero emphasised that the current pension system fails to fulfill its core purpose and urged for reforms to ensure retirees’ financial security.
Ajaero highlighted concerns over the alleged significant pension arrears owed by the federal government and federal parastatals, totaling nearly N300 billion.
“Retirement under the present scheme may therefore become a death sentence for many and this has many consequences for behaviour of workers in active service.
“The federal government it is alleged owes nearly N260 billion in pension arrears, with federal parastatals accounting for an additional N40 billion. Some states have arrears stretching up to eight years. In the private sector, reports indicate that many companies are in arrears of up to three years, deducting contributions from workers’ salaries without remitting them to the respective Pension Fund Administrators (PFAs)”, he argued.
The NLC President criticised the depreciation of the Naira, the currency in which pensions are stored, as a major issue contributing to the instability of pension values.
The summit, themed “Challenges, Strategies, Prospects, and Opportunities at Retirement in Nigeria,” brought together stakeholders including Dr Folashade Yemi-Esan from the Head of Civil Service of the Federation and Senator George Akume, who emphasised the government’s commitment to improving retiree welfare through various initiatives and partnerships.
Dr Eugenics Ndukwe, the summit’s convener, underscored the need for a supportive ecosystem to facilitate a smooth transition into retirement for Nigerians.
RN
