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
The Nigeria Football Federation has defended the recent quarter-finals draw for the 2025 President Federation Cup, saying it was conducted in line with best global practices.
A member of the NFF Executive Committee Board, George Aluo, stated that criticism over venues for the quarterfinals was unfortunate.
Going by the fixtures released on Saturday by the football body, Abakaliki FC will take on Nasarawa United in Benin, Wikki Tourists will clash with Ikorodu City in Bwari, Abuja, Akwa United and Kwara United will fight it out in Enugu, just as Area 3, Abuja, will host the encounter between Rangers International and Plateau United. All matches are scheduled for May 3rd for the emergence of semifinalists in a leg affair.
However, there have been criticisms over the Ikorodu United vs Wikki Tourist tie billed for Abuja, with a section of the press saying the venue is skewed in favour of the Bauchi team.
Aluo, also the Chairman of the Nigeria National League (NNL), said: “Some of our media men need better education, and newsmen should not be like the fans out there on the streets. In the English FA Cup, it is always a one-legged pairing that can see a club like Arsenal host Manchester United at home”.
Rivers State Governor, Sir Siminalayi Fubara, has said that the other party to the Supreme Court judgment; Rivers State House of Assembly, needed to know that they are also to comply with the ruling, and do so with commitment that prioritises the interest of the State.
The Governor maintained that such resolve must engender collective action towards achieving peace in the State because it serves as the potent medium through which all the arms of Government can function properly while creating public goods that benefit everyone.
Governor Fubara, who spoke at the inauguaration of the 85-year-old Okrika Grammar School in Okrika Local Government Area on Thursday, emphasised that without an enduring peace, sustainable development will be hampered practically, while the sense of security, respect, tolerance, stability, and well-being to pursue goals will suffer.
The Governor said: “Let me thank everyone, and also say this, it is important at this stage that we all embrace peace. The Supreme Court has made its judgment, we don’t have any option than to abide by it.
“And, by the special grace of God, we have started the process. We are appealing to other parties, consider the interest of Rivers State, it is important. The only thing that we owe this State is peace and development. I am open any day, any time for total peace in our State, because if I have to govern well, there is need for peace to prevail.”
Commenting on the project, Governor Fubara recalled how the planning committee of the 20th Anniversary of the Diocese of Okrika Anglican Communion visited, and appealed to him to give the school, dilapidated for a long time, a facelift.
Governor Fubara said he considered their request on the premise of the place the school filled in history and the importance of quality education in addressing some social vices among idle and uneducated youths.
The Governor stated: “I felt the least, as a government, we can do is to uplift the standard of this school. And, it is not out of place, because it is part of our agenda. The key things in this administration’s agenda are healthcare, education and food sufficiency (agriculture).
“So, we immediately keyed into it, and to the glory of God, we are here today to unveil one of the things that we have done, even in the face of these situations confronting our administration, which we didn’t bring upon ourselves. But we give God all the glory.”
Governor Fubara assured the Anglican Church that whatever that is remaining, within the scope of what has been approved in the institution, will be completed, stressing that education has remained the bedrock of development in any society.
He added that if the key ingredients (facilities) to boost education are properly managed, crime will be reduced drastically, saying: “So, I believe that when all the facilities put in place in this school are put into full use, the level of crime, the level of criminality would definitely reduce, not just in Okrika but other neighbouring communities that will benefit from this school.
“I want to assure you that we will continue to do our best because the interest of our State is the most important thing to us. This school is being managed by the church. I believe the church would protect every facility that we have put in this place. The church should see the facility as its own. As a matter of fact, the school belongs to the church, it is not government anymore. What government is doing today is to compliment their effort.”
The Rivers State Governor assured the leadership of the Anglican Church in the area that he will send experts to assess the shore protection concerns expressed by the Bishop, and see what can be done to safeguard the surrounding land of the school from being washed away.
Governor Fubara also challenged the Old Boys of the school to be bold and courageous to take up some strategic projects, especially those they had listed in their address, including establishing a centre for computer-based examinations for external examinations.
Providing the project description, Rivers State Commissioner for Education, Dr Ovy Orluideye Chukwuma, pointed to the massive remodelling and reconstruction work achieved, which has restored the cherished glory of Okrika Grammar School to confirm the commitment of Governor Fubara to quality education of children.
He said, “The construction and equipping of Okrika Grammar School, Okrika in Okrika Local Government Area of Rivers State was awarded in April, 2024 to various contractors, and was duly funded to completion by the Rivers State Government under the administration of Sir Siminalayi Fubara.
“The project consists of an Administrative Block, 24 Classroom Blocks, Laboratory, ICT Library Block, Assembly Hall, 100-bed Male Hostel, 100-bed Female Hostel, Kitchen and Dinning Hall, Matron’s Quarters and Sickbay, Principal’s Quarters, Senior Staff Quarters, Junior Staff Quarters, perimeter fencing, gate, generator house and power supply with extension of electricity, including solar-powered streetlights.
“There are also Vice Principal’s Quarters, sports facilities such as lawn tennis, basketball and school field. Revamping for facelift some of the old buildings such as the old dinning hall, repainting of various old structures and buildings within the premises.”
Dr Chukwuma also said: “There is road network and landscaping of about 1.8kilometers with 1.5kilometer drainage, interlocking connecting buildings, completed road pavements and parking lots, water supply to all the buildings within the compound.
“There is also furnishing and equipping of the entire 14 structures with standard students’ desks, hostel beds, quality and standard furniture, electronics such as 86 air conditioning, both inverter and 1.5 horsepower and 75 smart television sets, 60 computer sets and standard science laboratory.”
In her welcome address, Head of Local Government Administration, Okrika Local Government Area, Mrs Obianime Appollos, said the Okrika Grammar School in Okrika, established in 1940, had remained an iconic institution known for academic excellence, and thanked Governor Fubara for remodelling structures and restoring the status of the institution after years of neglect of all facilities, which demonstrates his commitment to providing quality education, investment in the future of Rivers children and improving the well-being of the people.
Speaking for the Old Boys Association, Mr Golden Iruayenama, said the years of neglect and dilapidation of structures at Okrika Grammar School were worrisome with promises to fix them never materialized until Governor Fubara changed the narrative.
Also speaking, Bishop of Diocese of Okrika Anglican Communion, Rt. Rev. Enoch Atuboyedia, said it will be remembered that it was when the school attained 85 years of existence that Governor Fubara, magnanimously remodelled and resuscitated Okrika Grammar School to help the shaping of the future of Rivers children, educationally.
Gunmen, who recently abducted the winner of the National Qur’anic Recitation Competition, Abdulsalam Rabi’u are demanding the sum of N30million ransom as condition for his release.
The Tide’s source recalled that the criminal elements had on Tuesday kidnapped Rabi’u along with his father and brothers near Labin Bangori in Katsina State.
Rabi’u, an indigene of Katsina State and a medical student at Ahmadu Bello University, ABU, Zaria emerged winner of the competition, Hizb 60 with Tajweed, earlier held in Kebbi State.
He was kidnapped after Governor Dikko Umar Radda invited him and his father to the Government House for a special recognition ceremony.
The gunmen reportedly picked Rabi’u alongside his father and other members of his family while returning home after the ceremony.
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