By Taiye Baiyerohi
Pension rights advocates have welcomed the proposed reintroduction of gratuity payments under the Contributory Pension Scheme (CPS), urging that the initiative be grounded in law and guided by inclusive and equitable principles.
Mr. Ivo Takor, Director of the Centre for Pension Rights Advocacy, made this known in an interview with the News Agency of Nigeria (NAN) in Lagos
He was reacting to the recent collaboration between the National Pension Commission (PenCom) and the Office of the Head of the Civil Service of the Federation (OHCSF) to explore the return of gratuity for civil servants under the CPS.
Takor described the initiative as a step in the right direction but stressed that it must go beyond policy pronouncements to deliver meaningful and lasting outcomes for Nigerian workers.
“For this effort to yield sustainable and equitable results, it must transcend mere policy declarations,” he said.
To ensure its success, Takor proposed three key recommendations. First, he emphasized the need for legal backing, noting that the Pension Reform Act of 2014 must be amended to include gratuity as a statutory benefit.
“Relying solely on administrative directives or policy guidelines will render the initiative vulnerable to inconsistencies and potential reversal,” he cautioned.
Second, he advised a shift in terminology, stating that the use of the term “civil servants” is too narrow and may exclude other public sector workers.
“Referring to ‘public servants’ would be more inclusive, as it encompasses all employees in Ministries, Departments, and Agencies (MDAs),” he explained.
Third, he called for the extension of the initiative beyond the federal civil service to state governments and even the private sector.
According to him, many state workers are denied gratuity benefits, while political office holders enjoy lifelong entitlements after just eight years in office.
“In the private sector, we see top executives receiving generous severance packages, while ordinary workers are left with nothing. This disparity is unjust and must be addressed in the spirit of equity and social justice,” he added.
Takor emphasized that the 2004 pension reform was never intended to deprive workers of their existing entitlements but to enhance retirement security.
“Any reform that reduces workers’ benefits erodes public trust and undermines the purpose of social protection in retirement.
“Reinstating gratuity is not just a policy correction,it is a moral obligation and a reaffirmation of the dignity of labour,”he said.
Also reacting, Dr. Babatunde Raimi, a pension coach, praised the move, describing gratuity as both a financial buffer and a symbol of appreciation for years of dedicated service.
He noted that the absence of gratuity has contributed to the uncertainty and hardship many retirees face upon leaving service.
“While the CPS has introduced transparency and sustainability to pension management, the emotional and transitional needs of retirees must be addressed through additional measures like gratuity,” Raimi said.
He added that the move reflects the government’s broader commitment to improving pension and retirement systems.
“If some state governments and organisations still manage to pay gratuity alongside pensions, especially in the public sector, then this practice should be adopted across the board. “Doing so will promote equity, fairness, and dignity in retirement,” he said.
(NAN)
Edited by Dada Ahmed.
