It is not uncommon for Nigerian government agencies to work at cross purposes, but we may have entered a phase in which the National Assembly is working against itself and wilfully tearing its own laws into shreds.

The passing of the Bill for the Establishment of a Police Pension Board by the National Assembly is the latest act. By excluding the personnel of the Nigeria Police Force (NPF) from the Contributory Pension Scheme (CPS), the lawmakers have just contradicted a legislation they made nine years ago. Section 5 of the Pension Reform Act, 2014, says in unambiguous terms that there will be no exemption to the CPS apart from members of the Armed Forces and the intelligence and secret services of the Federation.

It also excludes “any employee who is entitled to retirement benefits under any pension scheme existing before the 25th day of June 2004 being the commencement of the Pension Reform Act, 2004, but as at that date had 3 or less years to retire”.

Despite the clearly spelt-out provision, the lawmakers earlier this year trampled on its own laws and undermined itself when it passed the National Assembly Service Pensions Board (Establishment) Bill establishing the National Assembly Service Pensions Board, thereby exempting the personnel of the service from the CPS.

Former President Muhammadu Buhari signed it into law on the eve of his departure from office. This is one of the most damaging moves in Buhari’s eight years, but he could be excused on the ground that he did not understand what he was doing. The word in town was that the only way to prevent Buhari from signing a document was to make sure it did not get to his desk. Except the people around had a different motive and dissuaded him, it was usually a done deal. The day it was reported that the National Assembly Service Pensions Board (Establishment) Bill had been transmitted to Buhari, those who knew him were sure he would not as much as query it. He didn’t.

If Buhari understood the implications, he would have known that he had just started a journey that would plunge the government into trillions of naira of liabilities in the years ahead. For a man who left Nigeria in debt of over N46 trillion, he could hardly be bothered that he had just opened a floodgate for other agencies of government to seek to be excluded from the CPS (which shares the responsibility of saving for pensions between the employers and the employees) and return to the Defined Benefit Scheme (DBS) which places the entire responsibility on the employer.

With the National Assembly Service Pensions Board (Establishment) Bill signed into law, the next step was not surprising: the Senate passed the Pension Board Bill to transfer the full burden on pension payment to the Federal Government. According to media reports, personnel of the Nigeria Drug Law Enforcement Agency (NDLEA), Nigeria Immigration Service (NIS), Federal Fire Service (FFS), and the Nigeria Customs Service (NCS), among others, are now gearing up to be exempted.

Although Buhari left a huge national debt behind when he returned to his Daura country home on May 29, 2023, the damage his assent to the National Assembly Service Pensions Board (Establishment) Bill will do to Nigeria in the future will be far worse.

First, there will be no end to exits from the CPS. All it takes is to lobby the National Assembly by any means possible. Second, Nigeria will return to the era of owing arrears of pensions as we witnessed for decades before the pension reform. Third, we will return to seeing images of pensioners on queues waiting for their benefits.

It is very clear that government will not be able to meet the new obligations. Nigeria is suffering from revenue inadequacy and pension payment always gets relegated on the list of priorities. By and large, one of the most successful reforms in the history of Nigeria is now being destroyed by the actions of a few individuals who do not give a hoot about the national interest.

Those who are not familiar with the Pension Industry may not understand the harm that the lawmakers have been doing in their chambers in recent times. In 2004, the Federal Government embarked on one of the most ground-breaking reforms ever with the enactment of the Pension Reform Act, 2004 (re-enacted in 2014). Before then, employers used to run riotous schemes that did not inspire confidence in the employees.

In the private sector, there were schemes that were less than beneficial and were often implemented in ways that gave too much room for discretion and often short-changed would-be beneficiaries. The public service operated the DBS under which retirees were entitled to life pension based on years of service and hierarchy. However, economic challenges and fiscal crises caused arrears of public pension payments to accumulate. Pensions were budgeted for annually but were only paid if there was funding. Pensioners were dying in penury and frustration while waiting for their entitlements. This was the situation when the Olusegun Obasanjo administration introduced the pension reform in 2004.

To be continued tomorrow

Mrs. Abayomi, an economist, lives in Akure, Ondo State.