The House of Representatives on Tuesday mandated its Committee on Pension to investigate the Central Bank of Nigeria (CBN) over alleged non-compliance with contractual agreements concerning the administration and payment of pension benefits to its retired employees, with particular attention to the terms and obligations contained in the relevant agreements.
The lawmakers, consequently, resolved to invite the CBN Governor, Mr Yemi Cardoso, and other relevant officials, together with the appropriate pension administrators, regulators, and representatives of affected pensioners, to provide explanations and submit relevant documentary evidence.
The decision followed the adoption of a motion of urgent national importance sponsored by Hon. Hussaini Mohammed Jallo at the plenary.
The investigating committee is expected to also look into the non-implementation of the Harmonisation Policy, including the circumstances surrounding its approval, reasons for delay, ascertain the amount of outstanding arrears and consequences for affected pensioners, and the exclusion of eligible pensioners from general pension increases based on extra-statutory demands, to determine whether these actions and exclusions comply with applicable laws, contractual obligations, and approved pension policies.
It will also examine relevant documents relating to the Harmonisation Policy and general pension increases, including contractual agreements, policy circulars, payment records, and actuarial reports, to determine responsibility for any established administrative failures or breaches, and recommend appropriate corrective measures, notably the non- discriminatory extension of applicable general pension increases to all eligible pensioners in strict accordance with relevant laws and approved policies, and report within four (4) weeks for further legislative action.
Presenting the motion, Hon. Jallo noted that the payment of pensions, approved pension policies, and other retirement entitlements to former employees of the Central Bank of Nigeria (CBN) are causing severe hardship among affected pensioners.
He observed with concern allegations of non-compliance with contractual agreements affecting the pension entitlements and welfare of retired employees of the CBN.
According to him, the alleged non-implementation and faulty execution of the Harmonisation Policy may have led to disparities in pension benefits and the accumulation of unpaid arrears, ultimately denying rightful entitlements and imposing severe financial hardship on affected pensioners who depend on these funds for their livelihood.
“Also concerned by allegations that certain pensioners have been excluded from general pension increases based on additional or extra-statutory demands that may not align with applicable laws, binding agreements, or duly approved pension policies.
“Further concerned that the number of CBN pensioners has declined from 5,104 in 2011 to approximately 3,000 today, a reduction of over 2,100 individuals, which represents an average loss of 140 pensioners per year and that this mortality rate is likely accelerating as the surviving pensioners advance in age;
“Worried that prolonged delays in pension payments can expose elderly and vulnerable retirees to poverty, ill health and avoidable loss of life”, he submitted.
The lawmaker submitted that pensioners who have served the nation deserve fairness, transparency, and the timely or prompt payment of all benefits lawfully due to them.
He acknowledged the need for legislative oversight to establish the facts, determine the extent of any breaches or administrative failures, and ensure that all eligible pensioners receive their lawful entitlements.
In adopting the motion, the House urged the Central Bank of Nigeria and other relevant authorities to verify and pay all outstanding arrears lawfully due to affected pensioners within a reasonable and clearly defined period and recommend the extension of applicable general pension increases to eligible pensioners in accordance with the relevant laws.
The motion was unanimously adopted when Speaker Tajudeen Abbas put it to a voice vote.
