City Crime
New Pension Scheme: What Hope For Retirees?
With the different re
ports emanating from the Contributory Pension Scheme (CPS), there is palpable fear and doubt among Nigerian workers and retirees over the payment of their pensions. Reports from various quarters are beginning to cast fears in the minds of the retirees and those who are still in service. This is because Federal Government that introduced the scheme has not shown commitment in the process of ensuring its success while employers in both private and public sectors are not complying with the pension contributory policy.
The National Pension Commission (PENCOM) recently decried the non-compliance of pension contributory policy by employers in both the private and public sectors. According to a report released on its website, teh commission said only 73,403 companies have so far embraced the contributory pension scheme and that 43,913 of the companies have largely complied with the provisions of the Pension Reform Act.
The commission added that seven million employees working in the public and private sectors have registered with Pension Fund Administrators (PFAs) for the management of their pension contributions. The report stressed that the numbers of companies whose employees had so far registered is 73,403. Of this number, 43,918 employers have complied, whereas the remaining 29,485 are yet to comply.
The commission said since the Pension Regulatory Administration (PRA) 2004 became law, the Federal Government has yet to comply with the reduction of 18 per cent contributory pension of workers.
Percentage figure, according to the commission, was revisited upward from the PRA 2004 where both the employers and employees contribute 7.5 per cent each to add up to 15 per cent monthly, while the PRA 2014 was revisited upward to 18 per cent, yet the federal government is not complying with the reduction and remittance to the Pension Fund Administration on behalf of the workers in the federal service.
The 2014 Pension Reform Act stipulates that, “The contribution for any employee to which this act applies shall be made in the following rates relating to his monthly emoluments: a minimum of 10 per cent by the employer and 8 per cent by the employee”.
The PENCOM, in its one decade of operation as the regulator of pension industry has made reasonable achievements in alleviating the sufferings of Nigerian workers and making Nigerians see retirement as another phase of life that should not be feared. The challenge of getting some employers to be sincere enough to ensure that their employees enjoy the benefit of the contributory pension scheme as well as ensuring that the interest of many retirees who migrated from the old scheme are protected in the contributory pension scheme is staring the commission in the face and also affecting the retirees, thereby giving less hope to prospective retirees.
The Tide investigations show that many pensioners and workers are still not happy with the contributory pension scheme as they are at present lamenting that the commission and the various governments seem not to be mindful of their sufferings. Findings by The Tide show that in 10 years of experimenting the CPS, many private and public sector employers only deduct and remit 7.5 per cent of their workers’ salaries but fail to contribute their own 7.5 per cent to the employees’ Retirement Savings Account as stipulated by the law. There are also findings that till date, some employers deduct workers’ salaries but do not remit same to their RSAs.
However, PENCOM had some years ago sanctioned some employers for the negligence but current indications are that they have gone back to their usual way and their employees have made up their minds to accept things as they are to save their jobs. Some workers are demanding for the refund of their salaries so far deducted.
A cross-section of civil servants interviewed in Rivers State want the state governor, Barrister Nyesom Wike to phase out the Contributory Pension Scheme and refund the monies so far deducted from their salaries, saying it is a fraud on the workforce. They appealed to the governor to repeal the law establishing the scheme as it was an imposition on the workers by former Governor Chibuike Amaechi who allegedly failed to fulfil the government’s part of the scheme.
In separate interviews, many civil servants stressed the need to face out the contributory pension scheme, describing it as fraudulent on the workforce.
According to one of them, a director in the state civil service, the labour should approach the Rivers State government to demand the reversal scheme should be reversed to the old one and give people what is due them on retirement. The director, who preferred to be anonymous, was of the opinion that government should cancel the whole idea as it has failed from the very first day it was conceived while the monies so far deducted should be refunded.
Another civil servant, Friday Badon asked the state government to repeal the contributory pension scheme by sending a bill to the State Assembly for the revocation of the law establishing it in the state, saying “as it is now, we don’t know what is happening and the scheme is not favourable to workers. Badon advised the government to continue with the old pension scheme, pointing out that a situation whereby workers’ pension is being contracted does not augur well for the workers.
In his own view, Mr Nwachukwu Igwe said, “we have been kept in the dark as regards the operation and success of the scheme and don’t know how efficient the scheme will be.”
Mr Godwin George in his own comment said.” Please, they should reimburse me my money they have deducted, I don’t need the scheme.” George, an accounts officer, alleged that the government is not remitting its part of the counterpart funding, pointing out that in Nigeria, such scheme cannot be well managed. He appealed to the present Rivers State government to revert to the old pension scheme which makes it easier for retirees to access their pensions as at when due and promptly too.
Also speaking to The Tide, Mrs Josephine Amadi said; “they should refund me my money because we are not sure of the contributory pension scheme which is like the National Housing Scheme that does not benefit workers”. The pension administrators are using our money to do business and at the end, we will not benefit from it and we will be short-changed.”
She called on the government to look into the issue and save the state civil servants from the impending trauma they will face in the future.
Another civil servant, Mr Donatus Nwiueh in his reaction, said that government should abolish the contributory pension scheme in Rivers State as workers were forced to go into it by the immediate past administration.
As he put it, “the government is not contributing its quota and the money deducted from workers’ salaries are not being remitted into their Retirement Savings Accounts. All the monies so far deducted should be refunded.”
“The last administration lured us into the scheme, so this administration should rescue us by asking the pension managers to refund our money so that we go back to status quo”.
The Rivers State Chairman of the Trade Union Congress (TUC), Comrade Chika Onuegbu in an interview with The Tide called for the repeal of the scheme in the state in order to avoid short-changing the worker Onuegbu said government should quickly review the state pension laws to conform to the Pension Reform Act 2014, adding that the state pension law as amended was essentially a domestication of the 2004 Pension Reform Act now repealed and replaced with the 2014 Pension Reform Act which came into effect from July 2014.
He noted that the contributory pension scheme in the state is totally being abused as many deductions from the workers’ salaries were not remitted into their Retirement Saving Accounts.
“The congress is constrained to take such decision to call on the state government to repeal the pension laws due to the capricious manner the subsisting pension law in the state is being administrated across ministries, departments and agencies (MDAs). The union will not accept the imposition of pension administrators on the civil servants by the state government,” Onuegbu stressed.
Shedie Okpara
Rivers State Governor, Sir Siminalayi Fubara, has presented N1.188 trillion as budgetary estimate for the year 2025 to the State House of Assembly for consideration and approval.
This figure is an increase from the 2024 budget of N800 billion that was presented in 2023 to the Assembly.
Governor Fubara presented the 2025 Appropriation Bill shortly after delivering his address to lawmakers at the Assembly Auditorium, Administrative Block of Government House in Port Harcourt on Monday.
He said the 2025 budget christened: “Budget of Inclusive Growth and Development”, will be implemented to achieve sustainable economic growth, accelerate the development of the State, while improving the living standards of all residents in the State.
Governor Fubara explained that with the set out objectives, the 2025 budget will strengthen the capacity of the State to weather possible external shocks from the volatility of the national economy while building a resilient economy that will advance the collective development and prosperity of the people.
He said, “The total projected revenue for Rivers State for the 2025 Fiscal Year is N1,188,962,739,932.36.
Two components of the budget are constituted as follows: Recurrent Expenditure of N462,254,153,418.98; Capital Expenditure of N678,088,433,692.03; Planning Reserve of N35,688,864,931.16; and a closing balance of N12,931,287,890.1935. This gives a Recurrent/Capital Expenditure ratio of 44:56%, indicating the sincere commitment of our administration to both infrastructural and human capital development of our people and state.”
Governor Fubara said nearly N31 billion has been allocated to support interventions in agricultural development to ease the implementation of a comprehensive agriculture transformation and support programme for Rivers youths in order to significantly resolve issues of youth unemployment and poverty.
He emphasised that the commitment is also to address food insecurity in Rivers State, provide land preparation, farm inputs and extension services, including training, tractors, and access to improved seedlings and fertilizers to farmers to enhance their productivity and farm yields.
In education, Governor Fubara assured that his administration will continue to provide access to quality education at all levels, enabling Rivers children have the knowledge and skills they need to excel in their careers and contribute to the development of the State.
The Governor said, “Consequently, we have proposed to spend over N63 billion, representing 9.3% of the budget on education in fiscal year 2025. With this, we shall access all outstanding matching grants from the Universal Basic Education Commission to rehabilitate, equip and furnish dilapidated public primary and junior secondary schools, and continue to provide free basic education to our children.
“We will also rehabilitate, equip and furnish as many senior secondary schools as possible across the State, including the provision of new classrooms, perimeter fencing, water and electricity, to provide a conducive environment for effective teaching and learning to take place.
“We shall work with the school-based management boards, administrators, parents and teachers to fix our broken school system, improve enrollments, keep learners in school, promote effective teaching, and improve learning outcomes.”
Governor Fubara said with the proposed N97.750 billion for the health sector, representing 14.4% of the budget, all zonal hospitals, the upgraded neuropsychiatric hospital, and the new general hospital at Rumuigbo under reconstruction will be completed to provide quality and affordable healthcare services to the people of the State.
He also assured of rehabilitating more general hospitals, health centres across the State, ensure the procurement of essential drugs, medical supplies and equipment for effective and efficient healthcare delivery, while also providing more infrastructure to strengthen the capacity of the Rivers State University Teaching Hospital for quality, effective, and efficient tertiary healthcare services.
On Road and Transport Infrastructure, Governor Fubara said over N195 billion has been earmarked to complete all ongoing road projects and initiate new ones, support and facilitate the modernization of the public transport system through necessary incentives to improve the quality of public transportation services in the State.
Governor Fubara assured that all ongoing electrification projects, including delivering transformers and replacing the generator-powered streetlights with solar energy-powered streetlights across Port Harcourt and Obio/Akpor Local Government Areas will be concluded, and restated the determination to ensure the passage of the Rivers State Electricity Market Bill to regulate and open the State’s energy sector for private sector investments in order to achieve energy security and accelerate the industrialization of Rivers State.
He said, “In Social Development and Investments, Mr Speaker, we have proposed to spend N15.4 billion for the social development subsector of our economy to advance youth and gender empowerment, jobs and wealth creation, sports development, and social inclusion.
“We will collaborate with Local Government Councils to establish youth resource and digital transformation centres to enable access to digital tools, Internet services and training programmes for our youths to become economically successful and sufficiently self-reliant.
“We will also continue to support and strengthen the capacity of State-owned sporting teams, especially Rivers United, Rivers Angels, and the Hoopers to enable them excel and win more laurels in both national, regional and international contests.”
Governor Fubara, who said the 2025 will be funded from FAAC, Internally Generated Revenue, Statutory Allocations, Mineral Funds, Valued Added Tax, Refunds/Escrow/ECA and others, explained that the 2014 budget performed excellently with IGR figure hitting N100billion increase over the 2023 figure.
In his speech, Speaker, Rivers State House of Assembly, Rt Hon Victor Oko-Jumbo, applauded Governor Fubara for recording over N100 billion increase in IGR, which shows high level of transparency and accountability in governance, with the plugging of financial leakage, adding that it is also a testament to how attractive Rivers investment climate has become.
Rt Hon Oko-Jumbo pledged the continual support of the Legislature to the Excutive to ensure that the Governor remained focused, sustain financial prudence, deliver democratic dividends, and make life better for the people.
Rivers State Governor, Sir Siminalayi Fubara, has explained that he is guided by the commitment to deliver projects that are strategic and significant towards improving the lives of people in the State on an enduring scale.
The Governor made the explanation during the inauguration of the remodelled Government Girls’ Secondary School in Ahoada Town, Ahoada East Local Government Area on Friday.
At the event, Governor Fubara was conferred with the traditional title of Eze Yawe Ugo of Ekpeye land (The King who brings happiness and joy to Ekpeye land) by the Ekpeye Council of Traditional Rulers.
Governor Fubara stated that he inherited the school project when he assumed office on May 29, 2024, and decided to continue with the three contractors because education issue is a top priority in his administration.
He said that the investment made will definitely translate into providing quality educational training for the girl-child in the area to become bold, resourceful and responsible citizens.
The Governor noted, “So, we will not celebrate things that will not have meaning. That is why we are here today to inaugurate this school, a special school for people that are going to be mothers in this great nation.
“They are people that will be wives to great men. And if you don’t produce a quality girl-child, it means the nation is gone. So, you can see, everybody can attest that we are strategic; it is not just doing, but doing what is right.
“I assure our people that we will not do anything that we cannot stand and be proud of ourselves that we did something right.”
Governor Fubara said when he declared, last Wednesday, that he will be the first Governor, in the last eight years, to deliver pro-people projects in Omuma Local Government Area, most people did not understand the import of his revelation.
But Governor Fubara insisted that what his administration is doing is separate from what has happened in the past, as according to him, projects’ delivery is not for mere fanfare but strategically provided to address critical development needs of the people.
He added, “I stand here to say that even if there was a project commissioned at that time (in Omuma), it was a farm road. It has no connection to anything.
“The project we are commissioning has significance, and that is what we should be talking about… We are talking about projects that will add value to the lives of the people that you have decided to govern with the support of your people.”
Governor Fubara took a swipe at someone he described as ‘a data boy and an online dog seller’ who knows nothing about governance despite being close to a Governor for eight years.
He wondered the impetus of the ‘data boy’ who, reportedly, reacted to the projects delivered in Etche-Omuma, without understanding the overarching impact of the project on the people.
He said, “On Wednesday this week, we inaugurated a project: an 11.8km Okehi-Umuola-Eberi link road. It is a road that connects Omuma and Etche Local Government Areas.
“And we made very bold statement there to say that, very soon, we will be going to Omuma to also inaugurate another project. And we challenged them that the project we are going to commission in Omuma will be the first project that they are seeing.
“A few days later, those people who felt that the only thing that they can do to survive is social media and to sell dogs. I wonder why you will go to school, your parents will spend money, and the only profession you chose is to be a data boy and to sell dogs.
“If they love you, the appointment they gave to one boy the other day, if you were good, why didn’t they give you that appointment? Go and check yourself, something is wrong with you.
“It is not about coming (on social media) to abuse people; think about your life. Are you living a quality life? Even if you are asked to abuse people, at times, you should ask: what will people talk about me, knowing fully well that what I will say is not true?”
Governor Fubara expressed appreciation to Ekpeye people for their unalloyed support to his administration in the face of harassment and intimidation.
He said that some of their traditional rulers: Eze Ekpeye Logbo, His Imperial Majesty, Eze Kelvin Anugwo; and Eze Cassidy Ikegbidi were harassed and arrested while the Chief of Staff, Government House, Dr Edison Ehie, was declared wanted by the Nigeria Police Force on trumped up charges.
He said, “When the Eze Ekpeye was talking, a lot of you didn’t understand what happened. Because of their support for me, he was arrested, charged on false accusations. He stayed in police custody for more than four months; himself and Cassidy.
“We are not even talking about my Chief of Staff. Because of the support that he has publicly displayed, he was even declared wanted so that they can, maybe, reduce our influence.
“But the truth is always very clear: enemy has a time, his team cannot last forever. And I can assure you with all boldness today that they are gradually coming to an end.
“What we just need is to be patient. We have promised that our tactics will be following this process with patience and the fear of God. And we will get there.”
Governor Fubara promised to grant the request made by the Eze Ekpeye Logbo and other traditional rulers to recognise some designated traditional stools.
He also said that when he drove on the access road during project inspection tour, he decided to reconstruct the road, which has started, and assured that with availability of funds, the remaining 1km and the bridge will be attended to.
Governor Fubara said the contract for the internal roads will be revoked and re-awarded to a competent contractor who will deliver the project in line with the mantra of the administration.
Providing the project description, Rivers State Commissioner for Education, Dr Ovy Chinedum Chukwuma, said there are three distinct buildings handled separately by three contractors: Mcaretrace Nigeria Limited – Lot A; Azunda International Company Nigeria Limited – Lot B; and Ketdeg Ventures – Lot C.
Dr Chukwuma explained that there are two blocks of 12 classrooms, making a total of 24 classrooms; common rooms; science laboratories fitted with computers for chemistry, physics, agriculture and biology.
There is a library; he said, an Assembly Hall; offices; stores; Principal Quarters of 3-bedroom semi- detached bungalow; Vice Principal Quarters of 2-bedroom block of 4 flats of one-storey building.
Dr Chukwuma also listed an administrative block of offices, staff common rooms and conveniences, generator house with 2 nos 40KVA sound proof generator, gatehouse, roads and landscaping, perimeter fencing, overhead water tank for supply, and sports facilities.
In his welcome address, Executive Chairman of Ahoada East Local Government Area, Chibudom Ezu, said that as the only girls secondary school, it had suffered neglect over the years with the structures becoming dilapidated, hideout for miscreants and unfit for academic activities, and thanked the Governor for his intervention.
Speaking on behalf of the three separate indigenous contractors, Engr Azubuike Odum of Azunda International Company Nigeria Limited, said in October, 2023, Governor Fubara had charged them to speed up the work while adhering to agreed specifications, and thanked the Governor for the opportunity given them to serve the State.