


By Dada Ahmed.
James Ajayi,67,a retired federal civil servant in Nigeria says that he has spent his golden years battling a new, unforeseen challenge. After decades of dedicated service to his country, James is now confronting the harsh reality of living on a meager pension. With a little above N65,000 as his monthly pension, James,who retired on level 16, agrees that he must navigate life’s demands, but stress that his most pressing concern is his health. He laments that every month, a substantial portion of his pension,20,000 goes towards purchasing necessary medications. This,he notes with concern,leaves him with an increasingly smaller margin to meet other basic expenses, a development that forces him to make painful sacrifices.
James’ struggles are not unique. Many retirees under the contributory pension scheme (CPS) face similar dilemmas. Despite decades of service, this class of public servants who helped build the nation find themselves battling financial insecurity, compounded by the growing costs of healthcare.
Medical experts believe that the inadequate healthcare infrastructure only exacerbates this issue, leaving such retirees to fend for themselves, even after a lifetime of service.
For James, the N20,000 he spends on medications is a necessary burden, but he says it means skimping on essentials like food, transportation, and utility bills. Each month, James worries about his ability to maintain his health and whether his diminishing resources will allow him to afford the medicines he needs. This is a haunting thought for many CPS retirees who live on fixed incomes and face rising healthcare costs.
In Nigeria, many CPS retirees are often left to navigate a system where they must either deplete their pensions or rely on family and friends for support.
This system does not serve the needs of these retirees who have dedicated their lives to public service and now find themselves vulnerable in their old age.
It is essential for the government to ensure that retirees can live with dignity, free from the anxiety of whether they will be able to afford their healthcare needs. A comprehensive healthcare support system for retirees is needed, including subsidized or free medical care for those with chronic illnesses.
The government could also partner with private healthcare providers to offer affordable health plans for retirees. Implementing a national healthcare scheme for pensioners would alleviate some of the financial pressure on retirees like James and ensure that they receive the care they need without sacrificing their basic needs or dignity.
While the struggle for better healthcare is personal for many retirees, it also represents a national concern.Experience shows that the population of elderly Nigerians is steadily increasing with over 20 million people, aged 60 and above are expected to live in the country. Without intervention, the healthcare needs of this growing demographic expression could overwhelm the already overstretched health system. Therefore government investment in the health of retirees cannot be overemphasized as it represents an investment in the nation’s future.
Beyond healthcare, the government must also focus on improving the transparency and efficiency of the pension system. Many retirees, including James, regret that they find themselves entangled in bureaucracy when trying to access their pension benefits, creating additional stress and frustration. Therefore, a streamlined, transparent system will not be out of point as it will improve retirees’ quality of life and ensure they receive timely and adequate benefits.
Civil society organizations, healthcare professionals, and advocacy groups must also play a role in raising awareness about the plight of retirees.
Together, they can push for necessary reforms in the pension system and healthcare.
However,a glimmer of hope has emerged with President Bola Tinubu’s recent intervention. In a significant move, the federal government approved N758 billion to settle outstanding pension liabilities under the Contributory Pension Scheme (CPS).
This approval has been described by many CPS retirees as a landmark step in addressing their financial insecurity,particularly those who have faced delays in receiving their pension benefits.
The Director General of the National Pension Commission (PenCom), Ms. Omolola Oloworaran, announced that this approval would fully settle the accumulated pension liabilities, including N253 billion allocated to retirees of federal government ministries, departments, and agencies (MDAs).
She adds that the approval includes a N388 billion allocation to settle pension increases due since 2007, which had been unpaid for nearly two decades. This intervention aims to resolve longstanding arrears affecting over 250,000 retirees, signaling a much-needed shift in pension management in Nigeria. Furthermore, for the first time, N107 billion will be contributed to the Pension Protection Fund (PPF) to ensure that retirees, especially low-income earners, receive a living wage in retirement, according to her.
Certainly,this decision marks a turning point for Nigerian retirees. By addressing pension shortfalls, the government is not only fulfilling its obligations but also ensuring that pensioners can live with dignity in their retirement years. It is a positive step towards creating a more secure future for all retirees, and provide hope for individuals like James Ajayi, who have long waited for the government to act on their behalf.
However, this step should be just the beginning. More needs to be done to guarantee the long-term financial security and health of retirees in Nigeria. Moving forward, the government must continue to refine the pension system, improve healthcare access for retirees, and ensure that retirees like James no longer have to choose between their health and their survival. It is time to honor the service of Nigeria’s retirees by providing them with the care, respect, and security they deserve.
For James and other CPS retirees, their greatest hope is the swift disbursement of the N758 billion, dedicated to alleviating the years of economic hardships and the prolonged wait for their long-awaited retirement benefits.
Ahmed publishes The Reporters.
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