The House of Representatives has resolved to invite Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), to explain alleged breaches of pension agreements and the non-payment of outstanding retirement benefits to former employees of the apex bank.
The lawmakers also urged the CBN and other relevant authorities to verify and pay all pension arrears lawfully owed to affected retirees within a clearly defined period, while extending applicable general pension increases to all eligible pensioners.
The resolutions followed the adoption of a motion sponsored by Hussaini Jallo, representing Igabi Federal Constituency of Kaduna State, during plenary on Tuesday.
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The motion, titled “Need to investigate the Central Bank of Nigeria for alleged breach of approved pension agreements, non-implementation of harmonisation policy and exclusion of pensioners from general pension increases,” raised concerns about the administration of retirement benefits and the alleged failure of the apex bank to honour agreements with its former employees.
Presenting the motion, Jallo said the alleged non-implementation and faulty execution of the harmonisation policy had created disparities in pension benefits and resulted in the accumulation of arrears, leaving some retirees struggling financially.
“The House is concerned that the alleged non-implementation and faulty execution of the harmonisation policy may have led to disparities in pension benefits and the accumulation of unpaid arrears, ultimately denying rightful entitlements and imposing severe financial hardship on affected pensioners who depend on these funds for their livelihood,” he said.
The lawmaker also raised concerns over allegations that some retired CBN employees had been excluded from general pension increases because of additional or extra-statutory demands which might not be supported by existing laws, binding agreements or approved pension policies.
He argued that such exclusions, if established, could amount to a denial of benefits due to eligible pensioners under the applicable arrangements.
Jallo disclosed that the number of CBN pensioners had fallen from 5,104 in 2011 to approximately 3,000 currently, representing a decline of more than 2,100 retirees.
He said this translated to an average reduction of about 140 pensioners annually, warning that the situation could worsen as the surviving retirees advanced in age.
The lawmaker cautioned that delays in the payment of retirement benefits could leave elderly and vulnerable pensioners exposed to poverty, ill health and avoidable loss of life.
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He said people who had devoted years of service to the country deserved fairness, transparency and prompt payment of their lawful entitlements.
“The House acknowledges the need for legislative oversight to establish the facts, determine the extent of any breaches or administrative failures, and ensure that all eligible pensioners receive their lawful entitlements,” Jallo said.
The motion received overwhelming support from lawmakers and was adopted through a voice vote during plenary presided over by Speaker Tajudeen Abbas.
Following its adoption, the House urged the CBN and other relevant authorities to establish the full extent of outstanding pension arrears and pay all verified amounts due to affected retirees within a reasonable and clearly defined timeframe.
It also called for the extension of applicable general pension increases to eligible former employees of the apex bank in accordance with relevant laws.
The House further resolved to invite Cardoso, relevant CBN officials, pension administrators, regulators and representatives of affected pensioners to appear before it, provide explanations and submit documentary evidence.
It mandated its Committee on Pension to investigate the alleged non-compliance with contractual agreements governing the administration and payment of pension benefits to retired CBN employees.
The committee is expected to examine the terms and obligations contained in the agreements, as well as the circumstances surrounding the approval and non-implementation of the harmonisation policy.
It is also to establish the reasons for the delay, determine the amount of outstanding arrears and assess the consequences for affected pensioners.
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The committee will further investigate the alleged exclusion of eligible retirees from general pension increases on the basis of extra-statutory demands and determine whether the practice is consistent with applicable laws, contractual obligations and approved pension policies.
As part of its assignment, the committee is to scrutinise relevant pension agreements, policy circulars, payment records and actuarial reports to establish responsibility for any administrative failures or breaches.
It is expected to recommend corrective measures, including the extension of applicable general pension increases to all eligible retirees without discrimination.
The committee is to report back to the House within four weeks for further legislative action.
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