PENSION COMMISSION: AS NIGERIAN PENSIONIER’S ALBATROSS

On the 25^th Day of June, 2004, the Nigerian Pension Reform Act 2004 was signed into law, by former President Olusegun Obasanjo.

The objective of the law, is to among other things, ensure that every person who worked in either the Public Service of the Federation, the Federal Capital Territory or Private Sector receives his or her retirement benefits as and when due.

Sub-section (h), of section 2 of the Pension Reform Law specifically stated that the scheme is to “assist improvident individuals by ensuring that they save in order to cater for their livelihood during old age”. “Improvident individuals” in my own interpretation, are people who refuse to plunder state resources kept under their supervision or use their offices to aggrandise wealth. Exactly eight years after this scheme came into effect; there is hardly any evident to show that the scheme is leading Nigeria towards the right direction. The numerous scandals that have trailed the pension scheme, in recent times, is an attestation to the fact, that a lot still need to be desired, with regard to the effective management of the country’s pension scheme.

The first evident, that indicates that all is not well with the Nigerian Pension Law, is noticed, in the embarrassing and avoidable errors, that litter the entire Pension Reform Law 2004. For example, in the second schedule supplementary provisions relating to the commission, which is just three pages of the law, there are seventeen mistakes. The name of the former President, Olusegen is misspelt as (Owesun) Obasanjo, one therefore wonder how Ibrahim Salim, the former Clerk to the National Assembly who was a co-signatory to this law, could sign and forward such a document to the former president for his assent, without first noticing these mistakes. Sadly, for Nigeria, this is the document presently on the internet. However, this is a matter for another time.   

As a pensioner who falls under the present scheme, it being  exactly two years and eight months after I voluntary retirement from the public service of the Federation, I am yet to be paid whatever is due me as a pension. My personal experience to date, has been most discomforting. Hence, my resolve now to go public on this matter. In my neighbourhood in Baragia a suburb of  Lagos, I have watched with heavy heart and helplessness as people who retired from both the state and Federal Service die daily; in a miserably circumstances due to minor and preventable illnesses without earn their pension.  Most of the pensioners remaining are living under extreme hardship. As they daily look forward to relatives and friends for handout. Some have been ejected from their accommodation to go on the street of Lagos with their family and die. Very many can no longer afford three sequel meals and their medication at old age; this is not a good testimony for our dear country Nigeria. This hardship is occasioned by the unkind verification procedure and the unnecessary lent of time it takes for PenCom to complete work on a pensioner entitlement. This act of wickedness must no longer be allowed to continue, if for no other reason, but for the survival of our country.

 The Nigeria Senate, sometime early this year, alluded to this fact, when it condemned the subjection of the nation’s pensioners to harsh verification exercises before the collection of their entitlements.
The Senate also urged President Goodluck Jonathan to direct relevant government agencies to desist from the subjection of pensioners to limitless verifications.
The upper legislative house mandated its committee on Establishment and Public Services and States and Local Governments to conduct a public hearing into the management and administration of pension funds.
The resolution followed a motion moved by Senator Heineken Lokpobiri on the plight of pensioners in the country and the need for the Senate to investigate the payment of pensioners.
Lokpobiri said it took some pensioners as many as three years after retirement to process their papers while they were often owed arrears of payment for several years.
He argued that the dexterity in the administration of pensions and gratuities would add impetus to the fight against sharp practices in the country.
The lawmaker said the plight of the nation’s senior citizens after serving the country meritoriously was not only worrisome but unacceptable.
He stressed ``the pensioners are often made to loiter and sleep in public places for several days for the purported verification exercises that have become endless and persistent,’’.
Senate Leader Victor Ndoma-Egba described the undue subjection of pensioners to harsh verification procedures as `` institutionalized wickedness. ’’

 As earlier stated, I voluntary retired from the service of the Federal Republic of Nigeria on the 18^th of December 2009. Granted that I could not immediately do my verification exercise that year, because I was in school for a Master degree programme at old age, I finally had the opportunity to participate in the verification exercise on the 14^th June, 2011 in Lagos, for me to complete that exercise, it took me three days. A year and some months after the so-called verification, I am still been told by Pension Commission Officials in Abuja, that work has not yet been completed on my pension. What is most disappointing is the arrogance and unpleasant behaviour of some of the commission’s officials. Most of PenCom officials both junior and senior operate as people who have sworn to an oath of secrecy, never to allow a pensioner know what the exact position is, with regard to their pension.

A critical look at the pension reform act 2004 shows, that there is no time frame stipulated for PenCom to complete work and ensure that a pensioner is paid. This open clause, I presume the commission’s officials are taken as a license to carry out institutional wickedness; this must stop for God sake. I also heard from a reliable source, that the officials in the office of the Accountant-General of the Federation, who are expected to issue pensioner bonds, are not helping matters either, as bonds are kept for months unattended to in their offices on flimsy excuses. One therefore wonders, if these people will one day get to retire from the service. Presently, staff from PenCom and the office of the Accountant-General of the Federation of Nigeria, are behaving in a manner most unacceptable, not knowing that the pleasure of life are short-lived, and that more often than not, life itself is full of ups and down. Life means responsibility, a journey wherein change is constant and difficulties are many.

One is however, worried if the Federal Government ever get to realise the adverse effect and security challenges that could result from the shabby treatments of it pensioners. Already the country has it handful of crimes.

 According to the National Bureau of Statistics NBS, in 2010 65% of Nigeria's wealth is owned by just 20% of the population. This effectively means that 80% of the population share between them only about one third of the nation's wealth. This income inequality manifests itself in conspicuous consumption by a few side by side with abject poverty experienced by the many.

Income inequality, refusal to pay pensioner their entitlements as at when due, unemployment and poverty have been shown to correlate strongly with increases in violent crimes in societies. This cocktail is what US Assistant Secretary of State for African Affairs, Johnnie Carson referred to when he stated that Nigeria's Boko Haram was capitalizing on popular discontent with bad governance in Nigeria in general and the North in particular. The fact that virtually all indices of development and progress have been deteriorating from 2007 in spite of being a period of high oil prices and production should make every thoughtful person to question what is happening.

Among the Public Sector Employee retirees in Nigeria, we have a large concentrate of well trained personnel that could further compound the nation’s security challenges, one only hope, those in authority are reasonable enough, to know how best to manage these group of people, so as not to forced them to deploy their vast experience and training to negative use, at the detriment of the country, if the present maltreatment of pensioners is not stopped. Also the Nigerian government has a lot to benefit, if they henceforth chose to dignify their retirees. I, like most retirees, wants our pension paid before death come calling. PenCom as a matter of urgency most improve on it service to the Nigeria Public, and most be open to all inquiries if it want to be taken seriously.

As the saying goes “the labourer deserves it wages”. I honestly can no longer wait; I am looking forward to the prompt payment of my entitlements without any further excuse from PenCom.

 Mr. Omonhinmin is a Media Consultant based in Lagos.