By Ivo Takor, mni.
(C) Google.
The Former National President of NASU, Now Vice Chairman/Chairman, Human Rights Committee, Nigerian Bar Association (NBA) Epe Branch.
A pension is a type of retirement benefit, a system designed to provide people with income and financial security after they stop working, usually due to age, disability, or long service. It’s part of a broader concept known as social protection or social security. The purpose is to ensure that workers do not fall into poverty after their working life ends and can live with dignity even when they are no longer earning wages.
Pension systems are not just optional benefits, they are legal and moral obligations under labour and social protection laws. The main reasons are: Protection Against Old-Age Poverty: Without pensions, retirees lose their primary source of income and can easily fall into poverty. Laws ensure that workers have sustained income security after retirement. In Nigeria, the legal framework for pension are the Constitution and the Pension Reform Act 2014; Social Justice and Dignity: Work is a contribution to society; therefore, workers deserve to retire in dignity. Pension laws reflect the principle of social justice, that economic progress should also ensure the welfare of those who contributed to it.
ILO promotes pensions as part of the right to social security. Key conventions include: ILO Convention No. 102 (1952) – Social Security (Minimum Standards) Convention, which sets minimum standards for old-age, invalidity, and survivors’ benefits. ILO Convention No. 128 (1967), that deals with Invalidity, Old-Age, and Survivors’ Benefits Convention, reaffirms the right of workers and their dependents to receive income in old age or in case of invalidity or death; and ILO Recommendation No. 202 (2012) – Social Protection Floors. This Recommendation urges all countries to guarantee at least a basic level of income security for the elderly.
These instruments obligate states, and through national laws, employers, to contribute to systems that prevent vulnerability and social exclusion among the aging population.
Nigeria’s pension reform was heralded in 2004 as a turning point in safeguarding the dignity and welfare of retirees. The Contributory Pension Scheme (CPS) was introduced to correct the inefficiencies, corruption, and unsustainable liabilities of the old Defined Benefit Scheme (DBS). Yet, over two decades later, thousands of federal public service retirees remain trapped in a cycle of neglect, unpaid entitlements, and diminishing livelihoods.
At the heart of this failure lies successive federal governments persistent unwillingness or inability to comply with extant pension laws. This deliberate noncompliance has undermined the objectives of the Pension Reform Acts of 2004 and 2014, violated constitutional guarantees, and inflicted severe economic and psychological hardship on retirees who served the nation with commitment and integrity.
The CPS was designed to ensure transparency and sustainability by mandating joint contributions from employers and employees into individual Retirement Savings Accounts (RSAs). However, a critical component of the transition, the settlement of accrued pension rights under the old DBS, was mishandled. These accrued rights, representing pre-2004 entitlements, were to be redeemed through pension bonds, as established under Section 39 of the Pension Reform Act (PRA) 2014, via the Federal Government Retirement Benefits Bonds Redemption Fund.
Successive administrations have failed to fund this redemption mechanism adequately. As a result, retirees are often compelled to wait for one to two years, sometimes longer before receiving their earned benefits. This delay not only violates the PRA 2014 but also offends the principles of equity and social justice enshrined in the Nigerian Constitution. For many retirees, these delays translate into hunger, inability to afford medical care, and premature death.
This recurring failure is not merely an administrative lapse, it constitutes a breach of statutory duty and a profound betrayal of the social contract between the state and its workers.
Psychological Trauma: The anxiety, humiliation, and hopelessness associated with unpaid pensions inflict deep emotional and psychological wounds on elderly citizens.
Erosion of Trust in Government: Continued noncompliance with pension laws undermines public confidence in both the CPS and the sincerity of government reforms.
Demoralization of the Workforce: Serving public officers now view retirement with dread, not dignity, knowing that their years of service may end in neglect.
Beyond the PPF, the ₦758 billion pension bond also includes ₦253 billion to settle accrued pension rights for retirees from treasury-funded MDAs, as well as ₦388 billion to clear outstanding pension increases dating back to 2007. These measures affirm the administration’s resolve to make pension payments fair, up-to-date, and responsive to prevailing economic realities.
In a further step toward comprehensive pension reform, on June 13, 2025, the Head of the Civil Service of the Federation (HCSF), Mrs. Didi Esther Walson-Jack, met with the Director-General of PenCom, Omolola Oloworaran, to discuss a proposed Gratuity Framework for civil servants in treasury-funded MDAs under the CPS.
This initiative aligns with Section 4(4)(a) of the Pension Reform Act (PRA) 2014, which provides for the design of additional benefits (such as gratuity) to supplement retirement savings. If successfully implemented, this framework will restore a crucial benefit that many civil servants have long desired and will further demonstrate the administration’s genuine concern for the welfare of public servants.
While these policy pronouncements are commendable, it is imperative that the ₦758 billion pension bond be issued and implemented without delay. Pensioners and retirees continue to await the settlement of arrears from pension increases and accrued rights.
To prevent this initiative from becoming another rhetorical promise, the Federal Government must prioritize the immediate disbursement of the bond proceeds and ensure that all administrative and regulatory bottlenecks are removed.
Furthermore, it is essential that the Federal Government institutionalizes regular budgetary provisions for pension liabilities in subsequent fiscal years. Sustainable pension funding should be embedded in the national budget framework to prevent the reemergence of backlogs. The inclusion of pension obligations as a statutory expenditure line will help maintain the current momentum and secure retirees’ confidence in the long term.
The Tinubu administration has taken bold and commendable steps toward restoring the dignity and economic security of Nigeria’s pensioners. By addressing long-standing arrears, introducing protective mechanisms for low-income retirees, and initiating reforms toward a gratuity framework, the administration has indeed rekindled renewed hope for pensioners and retirees.
However, the fulfillment of these initiatives will ultimately be measured by timely execution, sustained fiscal discipline, and continued prioritization of retirees’ welfare. The issuance of the approved pension bond and the consistent funding of pension obligations will ensure that this renewed hope is not only felt but also sustained across generations of Nigerian public servants.
Ivo Takor, mni is a former National President of NASU, Now Vice Chairman/Chairman, Human Rights Committee, Nigerian Bar Association (NBA) Epe Branch.
