NLC flays government, employers for jeopardising pension scheme

… Commends FG over suspension of SGF, NIA DG

The Nigeria Labour Congress (NLC) has berated the violation of sections of the Contributory Pension Scheme (CPS) which is capable of derailing the entire scheme to the disadvantage of pensioners in the country.

NLC through its National President accused the Federal Government of its inability to remit accrued pension funds of its retirees under the scheme which came into force in 2004.

It warned that the future of the CPS was under threat if the government did not move fast to remit the cash.

Speaking at the congress of the Nigerian Union of Pensioners (NUP), NLC President, Ayuba Wabba, said the CPS was being threatened by the non-compliance of its major stakeholders, especially employers.

He decried the prevailing situation whereby retirees under the scheme suffer alot of hardship to access their funds.

According to him, if the challenges in the scheme were not addressed, the scheme would hit the rocks soon.

Ayuba said: “Issues of payment of benefit in Nigeria have become a nightmare. This needs to be addressed.”

NUP President, Dr. Abel Afolayan, highlighted some of the challenges confronting the scheme.

He said the failure of the Federal Government to release funds had made pensioners to suffer deprivation, lamenting that no retiree had been paid since October 2015.

Many next of kin of deceased pensioners, he said, had not been able to access the entitlements of their relations, and that this has made life unbearable for the beneficiaries.

He said: “Many organisations of government and employers have been defaulting on the regular remittances of contributions of workers to their pension fund administrators; this is affecting the philosophy of the scheme.

“Non-compliance with Section 173 (3) and Section 210 (3) of the 1999 Constitution (as amended) and section 15 of the 2014 Pension Reform Act (as amended) stipulates that pension shall be reviewed after every five years or whenever workers’ salaries are reviewed, whichever one that is earlier.

Non-compliance with the provisions of this law by government has made the contributory pensioners lose 15 per cent pension increase of 2007 and 33 per cent increase in 2010.”

In another development, the Nigeria Labour Congress (NLC) has commended the Federal Government over the suspension of the Secretary to the Government of the Federation (SGF), Mr Babachir Lawal, over allegations of financial impropriety.

Dr Peter Eson-Ozo, NLC General Secretary, gave the commendation in an interview with newsmen on Thursday in Abuja.

Eson-Ozo said that the move showed that there were no sacred cows in the fight against corruption by the present administration.

“Even though President Muhammadu Buhari has just taken the decision at this point in time, it was a good one as a lot of people and the NLC have wondered why no concrete steps had been taken.

“The matter had gone back and forth and the nation was informed that the president had received the report clearing him.

“We know that for the purpose of transparency and for the image of the anti-corruption fight, it was like a test case.

“So, it was clear that something more open and transparent needed to be done to ensure that the fight against corruption was thorough.

“In fact, at this stage, Mr President has now found enough cause to suspend him; we think it is a step in the right direction, even though it is a little delayed.

“We hope that at the end of the investigation, the nation would be clearly informed of the outcome,” he said.

Eson-Ozo also called on the Federal Government to continue to ensure proper and conclusive handling of investigations in the fight against anti-corruption in the country.

“This is not a matter of who, it is a matter of process and procedure; once there are allegations and evidences against an official of government or public officer on corruption, the correct steps should be taken.

“Such people should be asked to step aside and proper investigation conducted quickly based on what the true evidences are; there should be no `sacred cows’.

“The idea that because somebody is high up in government, he or she cannot therefore be touched is not good for the growth and image of the country,” the NLC General Secretary said.

Recall that President Muhammadu Buhari had on Wednesday suspended, indefinitely, the SGF and Amb. Ayo Oke, the Director General of the National Intelligence Agency (NIA) over allegations of financial impropriety.

President Buhari had also ordered an investigation into the allegations of violations of law and due process against the SGF in the award of contracts as the Chairman, Presidential Initiative on the North-East (PINE).