Pensioners in Anambra, Ebonyi and Enugu states have bemoaned delays in the payment of their pension even as they appealed to the Federal Government to remove red tape causing delays affecting retired civil servants in Nigeria.

In a survey conducted by the News Agency of Nigeria (NAN), retirees expressed frustration over the long wait for their pension, with some waiting up to two years after retirement.

Many retirees have reported receiving only partial lump sum payments – 50% or 25% – after several years of waiting, despite consistent pension contributions during their service.

The struggle of pensioners

Mr. Julius Okafor, who is set to retire in 2022, has shared his struggles, saying he is yet to receive his gratuity or monthly pension.

“I submitted all the necessary documents, but the pension administrator still hasn’t paid me. It was my friends and relatives who supported me and it is painful that senior citizens like us are treated like this,” he lamented.

• “After serving my country for 35 years, I was left to live hand to mouth,” Okafor lamented, calling on the government to remove bureaucratic hurdles causing delays in the payment of pensions.

• Another pensioner, Mr Emmanuel Nwaiwu, who retired in 2024, urged the Federal Government to establish a system where pensioners are paid immediate lump sums on retirement followed by regular monthly pension payments.

• He pointed to the growing backlog as more workers retire, further complicating the payment process.

PENCOM review

In Ebonyi, some stakeholders in Abakaliki, have called for the need to overhaul the National Pension Commission (PENCOM) to effectively improve the contributory system and overcome the delay in payment of benefits to pensioners in the country.

Dr. Mathew Odono, a retired director of the National Guidance Agency (NOA), Ebonyi Office, said the situation of getting the payment is worrisome.

Odono, who retired in March 2024, said he has yet to receive either his gratuity or his monthly pension.

“It is a worrying situation, I retired in March 2024 and as I am talking to you, I have never received a kobo. I applied during my retirement but until today I have not received anything.

“The federal government should look into this matter and review all processes, especially PENCOM, to save the pensioners,” the former director said.

• Mrs Happiness Okonkwo, a legal practitioner, supported the call for the review of the pension commission and called for the review of the Pension Reform Act 2024 for the future of civil servants.

• Okonkwo condemned the situation, saying it was wrong to hoard one’s savings after 35 years of meritorious service.

The cause of the delay

The Zonal Coordinator of Leadway Pension Trustee, Dr Arinze Udechukwu, attributed the delays to the slow remittance of pension funds by the government to trustees.

• He explained that according to the Pensions Law, pensioners are entitled to receive part of their pension as a lump sum, with the rest distributed as monthly payments.

• Udechukwu further advised civil servants to take proactive measures by joining pension schemes that provide guidance on savings and investments to secure their financial future.

• He also recommended that civil servants learn a trade while working, as it would be difficult for them to find a vocation after retirement.

• Lawyer and rights activist Mr. Julius Ezema has called on government to mandate pension fund administrators to process pensions six months before a civil servant retires, ensuring prompt payment of benefits.

Ezema stressed that timely pension payments will prevent pensioners from enduring undue hardship and suffering, noting that many pensioners face severe financial hardship – or even death – while waiting for their entitlements.

What you should know

• In 2004, the Federal Government of Nigeria enacted the Pension Reform Act (PRA 2004) which introduced the Contributory Pension Scheme (CPS).
• The act made it mandatory for public and private sector employers and employees to contribute to employee pension benefits.
• Pension administration in Nigeria has since faced inadequate funding, poor management, low coverage, lack of awareness and weak regulatory framework.

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