The Federal Government has released about 25 per cent of the total amount allocated for pension arrears this year, with a commitment to settle the full N88 billion earmarked for pension arrears in the 2024 budget.
The pledge was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Tuesday following a protest by hundreds of retirees from Nigeria’s Contributory Pension Scheme.
The retirees, frustrated by delayed payments, blocked the entrance of the Federal Ministry of Finance in Abuja, demanding an audience with Edun.
Speaking to the crowd, Edun revealed that N22 billion of the N88 billion allocated for pension arrears in 2024 had already been paid.
He reassured retirees that the remaining balance would be settled by the end of the year, with payments set to begin next week.
Edun explained that the pension backlog was a result of issues within the previous system, but emphasized the government’s determination to address and resolve the problem.
“What has happened is that there is a backlog in terms of contributions, the backlog under the old system and there is a solution. There has been a committee under the Head of Service, which has met the Minister of Budget, and we have a plan for dealing with the backlog under the Contributory Pension Scheme.
“In addition, under the current budget (2024), there is about N88bn of which N22bn has been paid. And that balance, we are committed to paying it. It has to be paid this year. We are committed to doing that starting next week”, he said.
For a sustainable long-term solution, Edun revealed that the government is considering raising funds through the capital market to clear the backlog entirely.
“In terms of the longer term, it is a huge amount, and we have to have a solution that takes care of everybody. That is being worked on. It’s going to be a question of going to the capital market and raising an instrument that allows that backlog to be cleared once and for all.
““In the immediate term, there will be payment for what is under the current budget and we are working, and we are going to present to Mr President a viable solution using the financial market to take care of the huge backlog under the contributory pension scheme.
“Your funding under the budget will be paid. We will start next week and pay for everything that we can under the current budget as approved by the National Assembly,” Edun said.
The minister’s assurances were made amid growing concerns from retirees across the country, who have called for urgent action to address the delays and ease their financial burdens.
Earlier in his address, the National Chairman of Nigeria Union of Pensioners Contributory Pension Scheme Sector, Sylva Nuatawu, called for consequential adjustment in pension, arising from the implementation of the National Minimum Wage (Amendment) Act, 2024.
Nuatawu stated that the union had sent several letters to the ministry without receiving a response, prompting members to gather at the ministry’s entrance gate.
The NUPCPS chairman called on the Federal Government to implement a N32,000 pension increase for pensioners.
He also highlighted that Nigerian workers who retired from the Contributory Pension Scheme over 20 months ago (from March 2023 to the present) had yet to receive their retirement benefits.
“CPS retirees were excluded from the three pension increments paid or approved by the present administration to retired public servants.
“Also, the release of funds for accrued rights to retired workers accumulated to over 20 months, however, three months of accrued rights were released after a peaceful rally by the union at the Office of the Accountant-General of the Federation on Oct. 23.
“We still have a backlog of 18 months yet to be released and this unfortunate present development cause for concern and worry to us as retired workers under the CPS,” Nwaiwu said.
