Features
Casualties And Lessons From PH Collapsed Building

Friday, November 23, 2018 is one date that will linger in the minds of Rivers people, particularly residents of Port Harcourt, as well as those living and doing business there for a long time. It may be described as the most tragic news of building collapse in the annals of the oil and gas-rich city.
Lately, just when the usual crowd that trooped daily to the site of the unfortunate incident such as families of trapped victims, sympathizers and passers-by have reduced as hopes of finding more bodies dimmed, the unexpected happened. Rescuers pulled out two more decomposing bodies from the rubbles, precisely on Friday, December 7, 2018.
This brings the number of deaths, so far, to 12 while more than 31 persons were rescued alive since that ill-fated incident which affected the mood of the state.
According to Monday Kalio, coordinator of the volunteer works at the site, who confirmed the recovery, the decomposing body of a middle-aged man was found about 3 am, last Friday and deposited at a mortuary in Port Harcourt.
Kalio said, “We have recovered 41 bodies. Ten are dead and 31 are alive,” even as he asked that more hand gloves and nose masks should be provided for the rescuers. But a day after Kalio spoke to newsmen, two more decomposing bodies were found same day, one in the wee hours of the morning, the other in the night.
Rescuers who have been having a hectic time searching for remains of victims complained that some of the equipment used for the rescue operation have gone bad, in addition to not having access to food and water which they said was hindering rescue efforts.
However, about nine heavy-duty equipment remain at the scene where rescue operations are still on-going with workers digging two large holes to the collapsed building in order to gain access into the underground area where some trapped workers are expected to be.
Two of the workers who did not want their names mentioned appealed to the state government and companies to provide more equipment to enhance the rescue operations.
Families of workers still trapped in the collapsed building remained hopeful as some of them who spoke to The Tide commended the rescue work done so far, saying the work attitude of the rescue workers have improved. Although 12 lifeless bodies have been removed from the rubbles, more persons may still be trapped inside the wreckage. But at this stage it might take more than a miracle or another world wonder to find more survivors as rescuers and volunteers are still undaunted in their task of clear, search and hopefully find….
Members of the Rotary Club of Port Harcourt Gateway have been on hand providing social services like food and water for rescue workers and volunteers, assuring that it would continue to give necessary aid to rescuers at the scene of the collapse building.
President-elect of Rotary Club of Port Harcourt Gateway, Arinze Akupue, while speaking to newsmen urged the rescuers to double their efforts in ensuring that more trapped workers, including one of its members, Rotarian Morgan Ekene Ihionu, are rescued.
Akupue said it was disheartening that some family members of those trapped in the rubble were yet to leave the scene several days after the 7-storey building caved in.
The state Governor, Chief Nyesom Wike, said recently that initial investigations had shown that the building permit obtained by the owner of the structure in 2014 was for a 5-storey building, but that in September 2018, a permit for a 7-storey building was issued by a government official. Already, the state Commissioner for Urban Development and Physical Planning, Dr Reason Onya, had stepped aside to allow for unimpeded investigation into the cause(s) of the incident.
Despite digging two large holes, rescue workers have not been able to gain access to the underground parts of the collapsed building, though most of the rubbles have been cleared by the worker, even as the perimeter created at the scene have been reduced to allow business owners within the area to have access to their shops and stalls.
Chairman, Port Harcourt Division of the Nigerian Red Cross Society, Mr. Yibotemeka Kalio, said rescuers have two more floors to crack in order to gain access to the underground parts of the failed building believed to be housing more trapped workers.
Kalio said, “The site has been divided into three. The first site we have cleared and we have done searches. On the second side they are cutting off the iron rods. What we have left here now are two floors. That is why they (workers) are cutting off the iron rods so that they can crack and we can go in and do our search and rescue.
Asked about the possibility of finding more victims alive, he retorted, “Honestly and sincerely we are still hopeful. The possibility is still there that we may see some living cases to rescue and then possibly some other cases to recover.”
But who are the casualties of this hapless incident. Like prominent Nigerian author, John Pepper Clark, wrote in one of his celebrated poems ‘The Casualties’ were he made reference to the many casualties (victims, if you like) of the Nigerian Civil war. Indeed the casualties are not only those who died. Neither is it only families of diseased persons nor their loved ones. Though the circumstances seems dissimilar, but war, like accident, the latter been the case of that Port Harcourt collapsed building, usually results in ‘weeping, wailing and gnashing of teeth’ if the scale of a 7-storey building collapse with many workers on site is anything to go by.
Some of the lines of that classic poem in no particular order read thus: ‘The casualties are not only those who are dead. ‘They are well out of it. ‘Though they await burial by installment.
‘The casualties are not only those who have lost Persons or property, hard as it is To grope for a touch that some
May not know is not there.
‘The casualties are many, and a good member as well
Outside the scenes of ravage and wreck.
We are all casualties!”
Indeed, the casualties are many! For nothing else, the serenity of Port Harcourt, Nigeria’s Garden City was shattered by news of the collapsed building under construction with many workers trapped in it. People made distress and frantic calls depending on which side of the divide. One needed to have seen how many a resident of the metropolis trooped there from far and near to ascertain if what they heard was true. Indeed, the casualties are many.
Without a doubt, Dr. Onya should be commended for rising to the occasion by stepping down to ensure an unimpeded investigation into the incident. Like the rest of us, he too is a casualty.
Governor Wike himself is a casualty, having cut short his trip abroad in response to a call of duty in his immediate vicinity as the chief security officer of the state, not minding that he has able hands such as his deputy, Dr Ipalibo Harry-Banigo, who in the governor’s absence led relevant members of the state executive council daily to the scene with strong assurances that the state government would institute a probe into the cause of the tragedy.
The state Commissioner for Special Duties, Dr. John Basia, his Environment counterpart, Dr Roselyn Konya, as well as the Commissioner for Health, Prof. Princewill Chike, temporarily relocated to the site of the collapsed building as they were seen there daily attending and responding to issues.
It was gathered that when the governor returned from his trip, he immediately dashed to the scene of the incident with his wife, Justice Eberechi Suzzette Nyesom-Wike, where upon he commiserated with the families of those who lost their loved ones, who, according to him, had gone there to work in order to provide for their families.
Wike described the building collapse as a sad development, saying, “I feel so pained that we have to face this kind of calamity at this time. I commiserate with the families that have lost their loved ones who came to seek their daily bread. Government will do all it can to give them the necessary support.
“I have directed the Attorney-General of Rivers State to ensure that all legal steps are taken to do what is right within the ambit of the law,” the governor stated, even as he ordered the immediate arrest of the owner of the collapsed building, saying that the State Government will bring all culprits to book.
“Whoever is involved, from the owner or the contractor to the officials of the state, they will face the full weight of the law. Government will take steps to acquire this property. We cannot allow this illegality. If you look at the master plan of this area, a 7-storey building is not allowed here,” he said, and commended the construction giants, security agencies and non-governmental organizations for working with the Rivers State Government in carrying out rescue operations at the site of the incident.
Some 24 hours after the governor’s arrest order, spokesman of the State Police Command, Nnamdi Omoni, confirmed the arrest of the owner of the structure, adding that any official of the state government found to have been involved in the incident, one way or the other, would be invited for interrogation and possible arrest.
In the same vein, leader of the Rivers State House of Assembly, Hon. Martins Amaehule, who led other lawmakers to the site of the incident, stated that the state legislature will resume plenary immediately to look into the matter and enact laws that will monitor construction of buildings in the state.
“Investigations need to be carried out and I can assure you that the Rivers State House of Assembly will reconvene to carry out proper investigation to ascertain what happened here. Be assured that in the coming days we will sit and review the situation,” the House leader said.
Already, the governor on Tuesday, December 4, made good his promise of instituting a commission of inquiry led by Justice Adolphus Enebeli to investigate the collapsed 7-storey building during a brief ceremony in Government House, Port Harcourt, with a charge to identify the owner of the building and the holder of the certificate of occupancy, according to a statement issued by the Special Assistant to the Governor on Electronic Media, Simeon Nwakaudu.
To be cont’d.
The governor’s charge reads, “To ascertain/identify the owner, developer and/or holder of the certificate of occupancy over and in respect of all that piece or parcel of land situate and lying at 119 Woji Road, (Plot 80), GRA Phase 2, Port Harcourt.
“Ascertain whether the construction of the 7—storey building on the said 119 Woji Road is covered by any valid or approved building plan and/or whether requisite approvals were issued by the appropriate ministry or agency of the Rivers State Government prior to the commencement of construction “.
The governor also charged the Commission of Inquiry to ascertain whether the architectural, engineering and structural designs of the said building were undertaken by competent and licensed experts in relevant fields.
He further charged the commission to ascertain whether appropriate/necessary tests, including soil tests, were carried out to ascertain the suitability of the site for construction of a building of that size.
Responding, Justice Adolphus Enebeli assured the governor that the commission will execute its assignment with the needed timeliness and in line with the law; adding that they will not disappoint the Government and people of Rivers State because the assignment touches the essence of humanity.
Meanwhile, stakeholders in the built industry all supported the governor’s decision to probe the incident, even as they have gone a step further to give expert advice to forestall future occurrences; in addition to commending the state government for its quick response to the incident which according to them saved many lives.
One of such is the Nigerian Institute of Town Planners (NITP) in a nine-point statement jointly signed by Tete Inameti and Emmanuel Ikechukwu, chairman and secretary of the body in Rivers State respectively and obtained by The Tide, as they called for regular audit of building structures in the state to authenticate their integrity.
While noting that though building approval agencies have always been the immediate targets of blame, the NITP said it that the public should realise that approval of building plan is a joint responsibility of all the relevant professionals in the built environment. You see, they too, like other relevant professionals bodies, are casualties.
The statement reads, “We (NITP) have been inundated with distress calls as a result of the collapse of a 7-storey building under construction along Woji Road in GRA, phase 2, Port Harcourt.
“While appreciating the calls from the public and the print and electronic media, the institute commiserates with the Governor of Rivers State, the people of the state and the families of victims of the collapse building.”
The institute noted that the tragic incident is a wake-up call to all professionals in the built environment to demonstrate the requisite professional standards and commitment to put a stop to quackery in the state, even as it called for strict penalties for those responsible for the sad incident no matter how highly placed to deter future occurrences.
The statement reads, “That town planners should be adequately staffed and equipped with professionals in the construction industry for effective routine supervision and monitoring of project sites during and after construction.
“Government should implement the Rivers State Physical Planning and Development Law No 6 of 2003 by establishing Local Planning Authorities in all 23 local government areas of the state, as well as a physical planning board at the state levels of plan approval so as to reduce the workload on the Ministry of Urban Development.
“Construction work should only be carried out by registered contractors and supervised by registered architects, engineers and builders rather than engaging unskilled contractors, while clients should obtain approvals before they begin construction and should not develop at variance with the approved plan,” the state NITP said.
On their part, the Nigerian Institute of Builders called on the State Government to set up a building control agency that will oversee building constructions in the state.
Rivers State Chairman, Nigerian Institute of Builders, Akinola Bammeke in his reaction to the November 23, 2018 tragedy further said, “What has happened is very unfortunate. One of the ways to check this kind of incidents is for the state government to set up a building control agency that will monitor building projects all through the various stages of construction,”
Bammeke also said the State House of Assembly needs to review ‘existing’ obsolete building laws to ensure that only professionals engage in construction of houses in state to avert such incidents.
In the same vein, the Nigerian Institution of Architects (NIA) led by the Rivers State Chairman, Egbuonu Asomba said only a proper probe can unravel the circumstance behind the incident.
Asomba said, “When a building collapses there are so many possible reasons for building collapse. You have to start looking at whether a proper soil test was conducted from the outset.
“Then you should also ensure that the proper design by professionals are involved at the design process. From the design of the building up to sending it for approval.
“I expect a lot more diligence, a lot more participation by every section of the brick environment. The professional architect, the professional structural engineer and every other professional must be involved to ensure that the right thing is done,” the State NIA boss said.
While the various steps taken by the state government so far in getting to the root of the matter are noble, the myriad of professional advise given by stakeholders in the built industry are very important lessons and instructions to the relevant authorities. For now, everyone should hold their horses and heave a sigh of relief, while awaiting the findings/report of the Justice led panel of inquiry; for we are all casualties of Friday, November 23, 2018, one way or the other.
By: Dennis Naku
Features
Vocational Education And Nigeria’s Economy
The importance of vocational training to the development of any nation cannot be over emphasised. Technical education experts define vocational education as any form of educational program or course that focuses on teaching the specific skills and knowledge required for a particular job or trade. Unlike traditional academic education, which is often broader and theoretical, vocational training is practical, hands-on, and tailored to prepare individuals for specific careers or industries. They also argue that the dearth of trained vocational and middle-level technical manpower represents a very serious gap in the development of third-world countries, including Nigeria. This argument, perhaps, underscores the Federal Government’s bold move towards educational reforms in Nigeria which includes the inculcation of vocational education into the schools curriculum as a way of equipping students with practical skills and enhancing their employability.
A recent statement released by the National Orientation Agency (NOA), indicated that the government has added 15 vocational subjects to the Basic Education curriculum. These additions which take effect from January, 2025, they said, are designed to promote hands-on learning and better prepare students for the job market. The new subjects include: Plumbing, tiling and floor works, POP installation, Event decoration and management, Bakery and Confectionery, Hairstyling, Makeup, Interior Design, GSM Repairs, Satellite/TV Antenna Installation. Others are: CCTV and intercom installation and maintenance, solar installation and maintenance, garment making, agriculture and processing, which covers crop production, beekeeping, horticulture, and livestock farming (e.g., poultry and rabbit rearing) and Basic Digital Literacy, incorporating IT and robotics.
The former Minister of Education, Prof Tahir Mamman, who earlier hinted on the new curriculum for basic schools during a meeting with stakeholders in Abuja, last October, said under the new curriculum, pupils in basic schools will be required to acquire at least two skills. According to the former minister, “The idea is that by the time children finish school, they should have at least two skills. Students should be able to finish school with a minimum of two skills so that they can have a very productive life. “The basis for the curriculum is the National Skills Framework, and it has been approved. It’s a very big project; it affects all schools in Nigeria, public and private.“Whether in the public sector or private sector, all schools are going to implement it. So, this is already determined. It doesn’t require anybody’s consent or any institution can depart from it.
Speaking on implementation, the Mamman said, “We do not expect comprehensive, full implementation from January because, when you roll out something new, there’s a lot of preparation that has to take place by the schools, acquiring new things, equipment, and small things that they will need,” adding that plans were underway to ensure teachers were well-equipped for the new curriculum. He also spoke on the benefits of the curriculum, noting that it would rekindle the desire of parents and students to acquire formal education. Hear him, “Some parents do not want to send their children to school. Right now, part of the problem why schooling has become unattractive is because people finish and there’s no change in their lives. “They cannot be employed. They can’t do anything on their own. So, parents question the value of spending money to send their children to school. “Now it’s going to change that game altogether.
And we have seen how these things resonate with parents. When they are successfully implemented, you will see students will want to run to school every morning. Parents want to take their children to school because they are learning practical things while in school.”The Acting Executive Secretary of the Nigerian Educational Research and Development Council, Dr Margret Lawani, had also disclosed during the same event that the newly introduced subjects fell under the vocational and entrepreneurship studies framework, which has been designed to expose pupils to various trades across multiple sectors. In the views of some vocational training experts, the decision to include vocational education into the basic school curriculum is plausible as it comes at a time when the nation’s education system is facing mounting criticism for its inability to adequately prepare students for real-world challenges.
They opined that by introducing vocational training at an early age, Nigeria has an opportunity to bridge the gap between formal education and practical skill acquisition. They however noted that the success of this initiative hinges on thoughtful implementation and sustained support. “The problem of Nigeria has never been a dearth of ideas or policies on how to move the country forward. In the past some educationists came up with the idea of 6-3-3-4 system of education whereby Students would be taught introductory technology and other forms of vocational skills at the junior secondary school level to better equip them for the real world in future. What happened to that brilliant idea? How many schools have well-equipped laboratories and well-trained teachers to handle these technical and vocational subjects? “The idea of setting up technical schools and polytechnics across the country is for them to serve as a grooming ground for young Nigerians in the area of technology.
How has the government, both federal and states, supported these schools to succeed? So, our problem is lack of implementation, fragmented policies and lack of sustenance not lack of ideas”, posited one expert. He advised that for the new curriculum to bear positive fruits, the government must take time to sensitize heads and owners of schools, teachers, parents and pupils of both public and private schools on the importance of the subjects and assist the schools in acquiring the necessary equipment and tools for the smooth running of the curriculum. “These subjects being introduced cannot be taught only theoretically as we are used to in this country. They require regular practical classes which will cost some money. Government, via the ministries of education, must vote out money for these practical classes and be ready to supervise schools to ensure that they are doing the right thing,” he added
Noting the importance of vocational training in today’s Nigeria where the rate of unemployment is high, Mr. Abel Ikiriko, a basic technology teacher in a Private School at Trans Amadi, Port Harcourt, regretted that vocational training is often seen as a last resort for those who fail academically, leading to low enrolment. He said, “I say this because I am a teacher and I know what we see in school every day. When these vocational subjects are introduced, you will see parents who will go to their children’s schools to make trouble because the children are compelled to learn maybe Hairstyling or something like that. Every parent wants their children to be doctors, lawyers, engineers and other professions and never skilled persons because for our society, skilled jobs are for the dullards.” “One of the most pressing issues in our labor market is the skills gap. Employers often struggle to find workers with the right skills, despite high unemployment rates. Yet many youths are not willing to be trained in a vocation. They prefer to search for the unavailable white-collar jobs. So unfortunate,” he continued.
Ikiriko said that the inclusion of vocational training in primary schools has benefits that extend beyond future job prospects. “Hands-on activities help children develop critical thinking, problem-solving, and creativity—skills that are essential in any field. Vocational subjects can also provide an alternative pathway for students who may not excel in traditional academic subjects, ensuring that no child is left behind in the education system. Moreover, these subjects can instill a sense of dignity in manual labor and shift societal perceptions about the value of skilled trades.”He advocated for public awareness campaigns so as to change perceptions about vocational education, and showcase its potential to lead to successful careers. Mrs. Meg Amadi, a mother of three pupils is concerned about the curriculum of the primary schools being overloaded, stressing that that is a potential risk.
According to her, primary school students are at a formative stage of their development, and overloading them with too many subjects could lead to cognitive fatigue. She maintained that careful planning is required to ensure that the new vocational subjects complement rather than compete with core academic learning; that they are seamlessly integrated into the broader curriculum without overwhelming students. To maximize the impact of this initiative, she offered the following suggestions: the government must invest in training and retraining teachers to deliver vocational subjects effectively, collaborating with vocational training institutes and NGOs for better result; government should begin with pilot programs in select schools to identify best practices and address challenges before scaling up nationwide; the private sector should be engaged to provide funding, equipment, and expertise for vocational training in schools.
Nonetheless, some analysts are of the view that the addition of 15 vocational subjects to the basic school curriculum is a visionary step toward transforming the nation’s education system and improving the nation’s economy. they hold that if implemented effectively, the initiative will equip young Nigerians with the skills needed to thrive in a rapidly changing world while fostering a culture of innovation and self-reliance. They said that with collaborative effort, strategic planning, and unwavering commitment from all stakeholders and the right execution, this bold move could serve as a model for other nations seeking to align education with the demands of the 21st century.
Calista Ezeaku
Features
A Farewell To Arms In Ogoni
For three decades or more, there has been a cessation of oil production activities in Ogoni land. But recent meeting of President Bola Tinubu with notable sons and groups may return Ogoni to renewed oil-production once again. Ogonis are weary of perennial neglect. Days after the meeting, President Tinubu gave a nod to the establishment of a University of Environmental Technology in Tai in the Ogoni area. He had earlier-on approved appointments into some federal boards in which some notable Ogonis were among the beneficiaries. The President’s actions and speeches so far have indicated good faith and good intentions. This has urged hard-nosed and irrepressible resistant leaders like Attorney Ledum Mitee, one-time President of the Movement for the Survival of Ogoni People (MOSOP), to be in complete agreement with the return to oil production.
He was heard on the news calling on all well- meaning sons and daughters of Ogoniland to accept the offers coming their way. Many Ogonis however, are still doubtful about the President’s intentions. They have said it is all geared towards the Federal Government having access to the rich oil and gas deposits in Ogoni soil. There is also distrust by some who have yet to heal from past injustices inflicted on the land by previous governments in cahoots with the oil majors. Since 1993 when oil production stopped in Ogoni land following intensive protests from the Ogoni people, the Nigerian government and the oil majors stopped reaping from millions of dollars in proceeds from the oil and gas. Lawson Hayford, a veteran journalist, who has reported the Niger Delta for over four decades, particularly the Niger Delta and the Ogoni crisis, said Nigeria has lost revenue amounting to over N30 trillion for the 32 years that oil has not been mined in Ogoni land.
Writing in the Southern Examiner, Hayford said, “While oil exploration and production in the Niger Delta region began in the late 1950s, operations were suspended in Ogoniland in the early 1990s due to disruptions from local public unrests with oil fields and installations remaining largely dormant for about 34 years, leading to a loss of revenue of over N30 trillion. “There are a total of 96 oil wells connected to five flow stations across the four local government areas of Khana, Gokana, Tai, and Eleme in Ogoniland. They were being operated by the Shell Petroleum Development Company, SPDC of Nigeria, a subsidiary of the Royal Dutch Shell.” That story is presently being rewritten by the remediation efforts of the Hydrocarbon Pollution Remediation Project (HYPREP) and the work of Prof Nenibarini Zabbey, its Project Coordinator.
“Over 50 communities are now enjoying potable water.” As though this was not magic enough, contractors are working hard toward mangrove regeneration not to leave out empowerment programmes for women and people with disabilities. These are stories too good to be true. In addition, the Petroleum Industry Act has also been introduced to take care of some basic needs of the oil communities, especially by tying development of the communities to the operational budgets of the oil companies. The establishment of a host community development trust as a condition for oil mining license holders regarding community development, may well be the magic wand required to turn things around for the Ogonis. A trying present is most likely to give way to a prosperous future. The future of the land and peoples of oil-bearing communities appear brighter with possibilities within this framework.
Environmentalist and lawyer, Iniro Wills, however, strongly thinks that the community-friendly clause in the PIA is only a tiny drop that cannot quench the thirst of the people’s appetite. Only time will tell. A lot of work needs to be done to bring every party in the Ogoni scenario to the table. Some groups are yet to agree with the return of oil production in Ogoniland, while others do not quite agree with the modus operandi adopted to initiate the process. They would all need to be brought together to ventilate their positions so that everyone is taken along together. Last Saturday, the committee that emerged to kickstart a process of the consultations initiated by President Tinubu convened a meeting at Freed Centre, Bori in the heart of Ogoniland. Though it was well attended, proceedings had to be hurried as a group of protesters stormed the venue.
Blessing Wikina, a long time public communications expert from Ogoni however, noted that the Bori meeting was a good landing. He said he was there. He dismissed the slanted reports about the meeting which he said were done to create social media content. He said in his social media handle that the committee deliberately avoided founding the consultations along old ‘loyalty blocs’ and ‘groups of people with entitlement blood.’ “Every Ogoni was to attend as an individual, not as a member of a camp. This approach meant no one would claim success or failure.”
Several factions exist in Ogoniland, including the leading pressure group, MOSOP, and they all need to get involved in the consultations, including those sulking for not being invited to the Abuja parley with the President.
Factional MOSO President, Fegalo Nsuke, recalled how MOSOP championed the Ogoni struggle from the beginning and wondered why MOSOP was not invited to Abuja or the Bori meeting. Hayford said, “sidelining MOSOP in the move to re-enter Ogoniland for oil and gas production could create distrust in the hearts of the Ogoni people, cautioning against rushing the process in order not to generate tension, anxiety and crisis in the landscape of Ogoni area.” Certain that the current process led by President Tinubu would yield good fruit for the Ogoni, Wikina says, he silently prays that “this oil resumption comes sooner, so that our people will participate in productive ventures around our oil economy…..and get benefits like our brothers in Orashi area, Bonny axis, etc.”
He cast a glance at the Bodo-Bonny road that will link mainland Nigeria with the vital island port of Bonny that is passing through Ogoniland. “Shall we wait, watch, as vehicles drive through here, to where lucrative oil businesses are happening…without our involvement? Every party will have to sheathe their sword and embrace the ongoing consultation process that will lead to a prosperous future for the land and the people.
Dagogo Josiah, Olayinka Coker and Emmanuel Obe
Josiah, Coker and Obe wrote in from Port Harcourt.
Features
Contributory Pension Scheme: Time For Review
For decades, Nigeria grappled with a pension crisis that left countless retirees in financial insecurity and despair. The unfunded pension system led to delayed payments and inadequate retirement funds, especially for public sector employees. In response, the federal government, under the leadership of former President Olusegun Obasanjo, enacted the Pension Reform Act of 2004, introducing a contributory pension scheme (CPS) designed to overhaul the system and secure a dignified retirement for Nigerian workers.
According to the Pension Reform Act, 2004, Contributory Pension Scheme (CPS) is an arrangement where both the employer and the employee contribute portions of an employee’s monthly emolument towards the payment of the employee’s pension at retirement. The CPS covers employees in the public service of the Federation, Federal Capital Territory, States, Local Governments and private sector organisations with three or more employees.
Only Judicial Officers, members of the Armed Forces, the Intelligence and Secret Services of the Federation; retirees under any pension scheme existing before 30 June 2004; and employees who had three or less years to retire as at June 30, 2004 were exempted from the scheme.
The objectives of the CPS according to Section 2 of the Pension Reform Act, 2004, are to ensure that every retiree of the Nigerian Public Service receives his/her retirement entitlements as and when due; assist an improvident person to save against old age; and ensure a uniform set of rules and regulations on issues relating to the administration and payment of pension to retirees.
According to Section 85 of the Pension Reform Act, 2014, which effectively repealed the 2004 Act, “All contributions made under this Act shall be invested by the Pension Fund Administrators with objectives of safety and maintenance of fair returns on amount invested”.
Analysts and some retirees have questioned the usefulness of this section of the Act when the retirees are kept in the dark about the investments made with their contributions and hardly reap the dividend of the investment. A group of retirees known as Contributory Pensions Retirees Forum, recently described the CPS as a “modern day slavery; an instrument of economic annihilation of workers to death in abject poverty after retirement.”
According to them, the CPS denies retirees of a lump sum of their money after retirement and dispenses a paltry monthly pension to retirees across the board. They narrated the case of a retiree who served the Federal Government from July 15, 1981 and retired on July 15, 2016 on salary grade Level 14, having worked for a mandatory period of 35 years and attained the maximum age of 60 years.
For all the years he put in, the total balance standing to his credit was N6,745,823.34. Out of this, he was paid 25 per cent which amounted to N1,686,455.84 while the balance of 75 per cent was retained by Pension Fund Administrator (PFA) for investment in the capital market and other large institutions. The retiree has been receiving a paltry sum of N26,703.15 monthly since 2016 till date despite the huge profits declared every year from the investment.
“Unfortunately, the sad part of this is that every day prices of goods and services are on the increase. While workers and retirees under the old scheme – Defined Benefit Scheme had their salaries and pension increased across all levels, we in the CPS are abandoned to our fate. We do not get increase”, lamented a retiree.
A public affairs analyst, Bonny Harrison, described such treatment of the retirees, who spend their active years serving the country as unfair and inconsiderate, noting that such attitude will discourage the people still in service from putting in their best. “They may be lured into bribery and corruption, knowing that the country will not cater for them when they retire”, he opined.
Section 7, Sub Section 1, Paragraph (a) of the Pension Reform Act, 2014 provides that unlike the former Defined Benefit Scheme, the CPS is to be jointly funded by both the employer and the employee. Each worker has an individual Retirement Savings Account (RSA) with a Pension Fund Administrator (PFA).
It also made provision for state governments to migrate to the CPS and stipulates that employees contribute eight per cent of their monthly earnings, and employers add 10 per cent, totalling 18 per cent of the employee’s monthly income. The funds are managed under the oversight of the National Pension Commission (PenCom), with the aim of ensuring transparency and accountability.
Two decades down the road, getting the state governments to key into the scheme has been a Herculean task. Reports show that only about five out of the 36 states in the country have fully complied with the CPS Act. Some have not even enacted their CPS laws while some enacted the law without contributing anything to their workers’ RSA. PenCom and Pension fund operators have reportedly made frantic efforts to have them key into the scheme since 2014 but that yielded little or no results.
A recently retired civil servant in Rivers State narrated that the past governments in the states did not key in fully into the scheme. While the eight per cent of the employees’ salary was deducted, the government failed to contribute its own 10 per cent, thereby making retirees from the state ineligible to benefit from the CPS scheme.
The retiree was however glad that the total amount he contributed over the years was paid to him without any deduction and that the State government has put keying into the CPS on hold. He advised that the state government should not be part of the CPS as it is confusing and not favourable to government workers. “Contributory Pensions Scheme cannot work in our states where the governors run the states like their personal businesses. A governor today may decide to contribute and another governor tomorrow may choose not to. What happens to the retirees in such a situation? He queried.
Low compliance in the informal sector has also been noted as one of the challenges of the scheme. The informal sector, which represents over 80 per cent of Nigeria’s workforce, often lacks the structure or financial stability to commit to monthly contributions. Many informal workers are unaware of the benefits of joining the scheme, highlighting a gap in outreach and education.
Analysts have also observed that fluctuations, especially inflation, often erode the value of retirement savings. Although PFAs invest in various assets, ensuring inflation-adjusted returns remains challenging, impacting retirees’ purchasing power, they said.
They therefore, canvassed for a halt of the CPS or reforms and initiatives to make it effective and worth the while. These include:
Expansion of CPS outreach programmes and incentives, such as flexible contribution options to increase informal sector enrollment; improved awareness and education which will drive greater participation among self-employed and informal workers; increasing transparency in fund management and imposing stricter penalties for misconduct so as to improve public confidence; introducing innovative investment options like green bonds and infrastructure development projects to help pension funds achieve better returns.
Others are: a more aggressive investment strategy that offers inflation-protected returns, benefiting retirees in the long term by PenCom in order to mitigate inflation’s effects, and PenCom offering financial education to pensioners so as to help them manage their funds effectively. PenCom should offer financial planning resources, ensuring that retirees fully understand the structure and benefits of the CPS.
Analysts have also argued that for CPS to succeed and live up to its objective of being a cornerstone of economic stability and prosperity, embodying the hope of dignified and secured retirement for all, PenCom must wake up to her duty of ensuring that the retirees are not short-changed by the pension administrators and that non-complaint employers (that fail to make deductions) as stipulated in PRA 2014 are duly punished.
Calista Ezeaku
-
News5 days ago
Tinubu Appoints Ogunjimi Accountant-General
-
Rivers5 days ago
Rivers Judiciary Reacts Over Allegation of CJ Annual Vacation …Threatened Legal Action
-
Rivers5 days ago
Fubara Approves Building Admin Block, Hostels, Others For IAUE
-
Nation5 days ago
Group Honours DPO
-
Business5 days ago
Expert Highlights Blockchain Potential To Transform Africa’s Economy
-
Politics5 days ago
Withdraw Suit Against Akpabio, Ex-Senate Minority Leader Urges Natasha
-
Niger Delta5 days ago
IFAD, LIFE-ND Inaugurate Multi-million Naira Agric Projects In Delta
-
Nation5 days ago
NDDC Building Regional Integration Through Inclusive Conflict Management – Ogbuku