Kaduna, Kano, Katsina retirees lament delay in payment of benefits

Some retired federal civil servants in Kaduna, Kano, and Katsina states have decried the non-payment of their retirement benefits.

The disappointed retired workers said that the situation was unbearable given the harsh economic circumstances in the country.

A survey conducted by the News Agency of Nigeria (NAN) reports that the civil servants who retired in March 2023 are yet to receive their accrued benefits.

In Kaduna State, Ahmad Kawure, a retired staff of the National Directorate of Employment (BDE), stated that he retired in October 2023 and has not received his benefits up until now.

“My pension administration has not called me to explain the reasons for the delay, but we heard that the delay was due to the Federal Government’s failure to pay the National Pension Commission (PENCOM). PENCOM will now pay pension funds administrators before retirees can get their money,” he decried.

Another retiree from a Federal Government agency who pleaded anonymity said the delay by the government in paying the pensioners was regrettable.

He stated that people who served the country for 35 years should be treated with respect and dignity and be paid accordingly so that they won’t suffer after retirement.

He recommended that the government pay accrued benefits to PENCOM even before retirement so that issues like delayed payment would be addressed.

“Most civil servants retire without a home of their own, and they rely on the money they have been saving for years to buy a house or venture into business. Unfortunately, most of them are now poor with no income and lots of family responsibilities; some get sick and cannot afford medical care. The government should prioritise the issue of pensioners or retirees and ensure all payments are done on time; this would encourage civil servants in service to be honest and hardworking,” he said.

In Kano State, some state and federal government retirees, as well as pensioners, have also decried the late payment of their monthly pensions and retirement benefits. The News Agency of Nigeria (NAN) reports that the Pension Reform Act came into effect on July 1, 2014, to govern and regulate the administration of the contributory pension scheme for both public and private sectors. Under the Act, both employer and employee are required to make a minimum of 10 percent and eight percent contributions, respectively.

Former President Olusegun Obasanjo’s administration had introduced the new pension scheme to address the problems associated with non-payment of pensions for several years by previous administrations.

A retiree, Baba Isa, told NAN that in spite of efforts made to collate, fill, and submit all necessary documents to his PFA after retirement, his PFA had failed to pay his money.

“I do not know why my PFA has not called me or paid any money into my account. I have filled all the forms they requested, but I have not heard from them,” he said. “It has not been easy living without a monthly income since I retired, and my little savings are gradually being depleted,” he explained.

Adamu Aminu, who also disengaged after 35 years in service, lamented that because of the delay in the payment of his pension, he could not afford some essential drugs for his ailment.

“I appeal to the PFA to release my money. I cannot understand why I have not been able to receive any money one year after I retired,” he explained.

Salisu Nura expressed frustration and distress over the severe economic challenges in the country and urged President Bola Tinubu to intervene. He also lamented the handling of fuel price hikes and hyperinflation, which disproportionately affected pensioners who were already struggling with meagre pensions. Nura said that he started receiving his pension one year after his retirement.

Malam Ali Musa, another pensioner, lamented that the situation had worsened the financial strain on pensioners. He appealed to the government at all levels to match the percentage rise in the minimum wage with that of pensions to ensure fairness and help pensioners cope with the rising cost of commodities. Musa also lamented that he started receiving his monthly pension 15 months after retirement.

In Katsina State, the Coalition of CSOs says the Federal Government pension scheme is just an exploitation of the workers at the weakest and most vulnerable cycle of their lives. The Chairman of the coalition, Alhaji Abdulrahman Abdullah, stated this in an interview with the News Agency of Nigeria (NAN) in Katsina.

According to Abdullahi, the scheme favours the pension administrators at the expense of the retirees. “The administrators make money from workers’ contributions right from the onset of their employment and continue to enjoy the same until their retirement age. Workers should be given 100 percent of their contributions a month before their retirement.

“However, the Federal Government needs to provide investment training for workers a year before their retirement so their gratuity can be used as seed funds to continue with their learned investment skills. At the age of 60, a worker is mature enough to manage his money,” the CSOs chairman said.

According to him, it is unfortunate that some retirees take up to six months to a year before they get their gratuity from their pension administrators. “The system is completely exploitative to the workers,” Abdullahi lamented.