By Dada Ahmed.
(C) Google.
All things being equal, coupled with the conscious efforts of the leadership of the National Union of Pensioners Contributory Pension Scheme,NUPCPS,and other stakeholders,pensioners under CPS are expected to receive their age long pension arrears in no distant future but not without a germain question.
This follows the National Assembly’s approval of a ₦758 billion bond for the payment of pension arrears owed to CPS retirees dating back to 2007 sequel to the delibration of the Federal Executive Council FEC and transmission to the National Assembly by President Ahmed Bola Tinubu for delibration and approval.
It is envisaged that the ₦758 billion bond has the potential to bring relief to thousands of these retirees nationwide, when fully implemented. For many, it will be the first real breakthrough after years of waiting for such promises to be fulfilled.
But even as the payments are yet to commence,and perhaps spark the expected celebrations,one big question that continues to trouble the minds of CPS pensioners is whether the much-talked-about ₦32,000 wage adjustment will be a permanent monthly increase, or just a one-time settlement folded into the arrears?
This single question now overshadows the joy that should accompany the expected payout from the bond.
CPS pensioners say they are eager to know whether their monthly pensions will rise by ₦32,000 going forward, or whether the increase will end once the ₦758 billion bond is disbursed.
According to media reports, the ₦32,000 increment was officially announced for pensioners under the Defined Benefits Scheme (DBS).
However, there are other reports suggesting that all federal retirees under the Contributory Pension Scheme (CPS) at the national level, will also benefit from the ₦32,000 baseline increase.
The increment is connected to the National Minimum Wage Amendment Act, 2024 and its consequential adjustments. Yet, the critical question remains: is this a permanent development, or merely a temporary relief?
The stakes are high. If the ₦32,000 is permanent, CPS pensioners will finally enjoy predictable relief against rising food prices, medical bills, and other living costs. But if it is a one-off, many of such retirees fear they will soon return to the hardship they faced before.
Officials from the National Pension Commission (PenCom) have spoken about reforms designed to clear accrued rights up to March 2025. To back this commitment, the Debt Management Office (DMO) floated the domestic bond of about ₦757 billion, approved by the National Assembly to finance the pension arrears.
Keen watchers of pension issues in the country observe that while the financial framework of the bond is clear, the status of the ₦32,000 adjustment remains uncertain. According to them, no circular or official document has publicly confirmed whether it is a permanent increase or part of the arrears alone. Most CPS retirees therefore remain largely in limbo on the issue of N32,000 increment.
Obviously,this clarity matters because of its implications to government expenditure. A permanent ₦32,000 monthly increase means that the government must budget for higher recurring pension liabilities year after year. Many inquisitive minds among retirees fear that such an arrangement may prove difficult to sustain, creating yet another cycle of arrears,if no strong fiscal framework is made for its sustainability.
CPS pensioners are therefore demanding answers to many key questions such as knowing if PenCom or PTAD has classified the said N32,000 as permanent or arrears. What more, they will also be interested to know if Pension Fund Administrators (PFAs) have been directed to adjust monthly payments of the retirees and what funding source will sustain. Better still, what complaint system is in place, if they do not see the increase reflected in their monthly pension,among other probing questions.
The absence of clarity on how CPS pensioners will continue to receive the ₦32,000, once the ₦758 billion bond is exhausted, has fueled rumours among retirees, particularly the CPS retirees. Many believe the uncertainty, if not resolved, could undermine the goodwill the government hopes to earn by clearing the arrears in the first place.
For transparency’s sake, experts suggest that PenCom and PTAD must urgently publish the implementing circular confirming the ₦32,000 status,release a Q&A document explaining eligibility, start dates, the complaints process and
commission an independent audit, within three months, to confirm how many pensioners actually are expected to receive the uplift and in what form.
Until then, pensioners will have to wait for what is being described as the “bank alert test.” If the ₦32,000 consistently reflects in their next two pension payments,all good and well as it can be considered as a permanent payment. If it does not, then it could mean that is only a one-time arrears adjustment.
Experts note that the lesson here goes beyond money. To them, it is about trust, dignity, among other factors. They argue that retirees who served the nation deserve certainty in their retirement years, and not guesswork.
As dust settles on the ₦757 billion bond and CPS retirees eagerly await the payment of their age-long arrears being pursued with vigor by their union leadership and other stakeholders, cos retirees the optimism is that they will receive their pension arrears, sooner than later.
Yet, the question on the lips of an average pensioner in Nigeria is not about promises made, but whether the ₦32,000 increment, promised by the government, can truly be made sustainable and predictable.
Ahmed, a CPS retiree, writes from Lokoja.
