Nigeria Pension Debt Hits N193 Billion Amid Rising Unpaid Arrears and Pensioner Protests

The federal and state governments in Nigeria have accumulated a staggering debt of N193 billion in unpaid pension arrears, sources familiar with the issue have revealed.

According to reports by The PUNCH, this massive debt has left countless pensioners in financial ruin, with some retired state workers being owed for up to 26 months. The Federation Account has a significant portion of this debt – N88 billion accrued rights under the Contributory Pension Scheme – still outstanding from March 2023.

Pension Reform and Inaction by State Governments

Spokesman for the National Union of Pensioners, Bunmi Ogunkolade, said that the delays in retirement fund distributions would only add to pensioners’ hardships. “It is government debt; they should settle it,” he emphasized.

The PENCOM (National Pension Commission) said it’s working to clear this debt but pensioners have lost patience and are preparing to voice their frustration. A protest in Abuja is scheduled for October 23.

Government Response and Initiatives

However, not every state government is failing in their pension responsibilities. Zamfara State Governor Dauda Lawal has made the greatest effort in paying off N9.3 billion pension debt. “The governor has shown commendable commitment towards resolving pension arrears backlog affecting beneficiaries of Zamfara state civil service,” according to Idris Suleiman.

Similarly, Governor Abdullahi Sule in Nasarawa State approved a N2 billion payment aimed at clearing arrears for local and state government retirees accumulated since 1999 to 2011.

Growing Economic Fear for the Elderly in Nigeria

As increasing job losses accelerate due to economic uncertainty in Nigeria, the retired workers now struggle in vain to collect their lawful pension benefits, with some facing bleak prospects.

Addressing the press from Enugu, Pension Union Chairman Ikechukwu Ekere described their condition as ‘very painful.'”

Meanwhile, the retirees from Kwara State believe their situation is dire. Their state chairman Saidu Oladimeji simply summarized it saying ‘rest is bitter after labor.’

Conclusion

Media Talk Africa urges all state governments to hasten their efforts and clear these impending arrears before long. In order to avoid a lot of anxiety and untold hardship for these senior citizens, our governments must guarantee safe financial prospects for millions of retirees in the country.

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