The Central Bank of Nigeria (CBN) has revealed that the Federal Government spent N356.12 billion on pensions and gratuity in the 2021 financial year.
Apex bank revealed this in its report, ‘Federal Government recurrent expenditure’. The amount was N3.48 billion below the N359.6 billion recorded in 2020.
However, in spite of the huge yearly allocations, federal retirees have said they were being owed, among other issues.
Pension Transitional Arrangement Directorate (PTAD) in charge of the Defined Benefits Scheme under the Federal Government, had earlier claimed it inherited pension liabilities of N129.48 billion.
In a capacity workshop where a presentation titled ‘Parastatals Pension Department’ was delivered, it said PTAD inherited an estimated amount of N32.77bn, N28.96bn and N67.75bn owed pensioners of the Treasury Funded Parastatal, Ex-PHCN and defunct agencies respectively.
Dr. Chioma Ejikeme, the Executive Secretary of PTAD, held a meeting with the executive members of the Nigeria Union of Pensioners and the Federal Civil Service Pensioners Branch.
The directorate said in a statement that, “PTAD boss informed the union executives that following the expanded computation project embarked on by the directorate in 2020, and going through the career documents submitted by pensioners during verification, it was discovered that 14,836 pensioners in the Civil Service Pension Department were being overpaid.
“At the end of the meeting, both parties agreed that the affected pensioners will be contacted and informed of the directorate’s plan to properly place them on the right monthly pension from the month of July 2022, while the modalities to recover the overpayment will be worked out in due course.”
Pension Fund Administrators Channel N130 Billion into Infrastructure Investments
Pension Fund Administrators (PFAs) have strategically invested N130.18 billion from the Contributory Pension Scheme into infrastructure projects by the end of September 2023.
The data from the National Pension Commission reveals the commitment of PFAs to diversifying their investment portfolio while maintaining compliance with the Pension Reform Act of 2014.
As of the reporting period, the total assets under the Contributory Pension Scheme amounted to N17.35 trillion.
In addition to infrastructure investments, PFAs directed funds into various avenues, including domestic and foreign ordinary shares, federal and state governments’ securities, and money market instruments.
The investment strategy aligns with the amended investment regulation introduced by the commission.
The regulation outlines stringent requirements to ensure prudent and compliant investment practices in line with the provisions of the Pension Reform Act.
It emphasizes that pension fund custodians should adhere to written instructions from licensed PFAs regarding the investment and management of pension fund assets.
The regulation also sets guidelines for allowable investments outside Nigeria, and PFAs are cautioned against contracting out the custody of pension fund assets to third parties without prior approval.
This strategic approach not only upholds regulatory standards but also serves the long-term interests of contributors, ensuring a balanced and diversified investment portfolio.
Federal Government Completes N1.02 Billion Payment to Power and Transport Pensioners
The Federal Government announced the successful disbursement of N1.02 billion to 7,091 pensioners from the Power and Transport Sectors of the Parastatals Pension Department.
This vital step to fulfill pension obligations was revealed by Olugbenga Ajayi, the Head of the Corporate Communications Unit at the Pension Transitional Arrangement Directorate (PTAD), in a statement released on Sunday.
The allocated sum accounts for 39% of the accrued pension arrears owed to retirees in these sectors for the period spanning from August 2015 to September 2023.
The process involved a meticulous calculation of each pensioner’s monthly pension based on their career details, salary structure, and applicable pension increments.
This commendable initiative stemmed from the realization that 7,091 pensioners in the power and transport sector were receiving inadequate pension payments due to discrepancies within the inherited payroll system managed by PTAD.
Dr. Chioma Ejikeme, the Executive Secretary of PTAD, reiterated the government’s commitment to upholding fairness, equity, and justice, ensuring that every pensioner receives their rightful pension under the Defined Benefit Scheme.
Dr. Ejikeme also assured federal pensioners that the payment of accrued pension arrears would continue until all obligations are satisfied, subject to the availability of government funding.
This announcement underscores the government’s unwavering dedication to the welfare of retirees and is a significant milestone in addressing outstanding pension liabilities in the country.
Nigeria’s Pension Industry Reaches New Milestone as 10 Million RSAs and N16.76 Trillion in Assets
The National Pension Commission (PenCom) announced that as of the end of the third quarter of 2023, the number of Retirement Savings Accounts (RSAs) under its Contributory Pension Scheme (CPS) has surged to 10 million.
What’s more, the pension assets under current management are now worth N16.76 trillion in today’s value.
During an interactive session held in Kano for the organized private sector, Dr. Umar Farouk Aminu, Commissioner of Administration at PenCom, delivered the news on behalf of Director General Aisha Dahir-Umar.
Aminu highlighted PenCom’s substantial strides in ensuring a seamless implementation of the CPS, emphasizing their focus on deploying the Enhanced Contributors Registration System (ECRS) within the pension industry.
Dahir-Umar acknowledged the rapid growth of Nigeria’s pension sector, underlining the introduction of the Data Recapture Exercise (DRE).
The DRE mandates all RSA holders who joined the CPS before July 1, 2019, to update their information with their respective Pension Fund Administrators (PFAs).
Furthermore, PenCom has successfully transferred contributions worth N10.20 billion to the RSAs of 142,486 NSITF Scheme contributors. They continue to prioritize the smooth transition of NSITF contributions into RSAs.
This milestone was celebrated at an interactive session in Lagos, where calls for collaboration among all stakeholders were reiterated.
The introduction of the RSA Transfer System (RTS) in 2020 was highlighted, showcasing its significant impact on improving service delivery by PFAs.
Adewale Smatt Oyerinde, the Director General of NECA, expressed optimism that these developments and deliberations would drive further advancements in Nigeria’s pension sector.
The achievements underscore the growing importance of prudent financial planning and management in the country.
Billionaire Watch4 weeks ago
MacKenzie Scott Sells Off $10.4 Billion Worth of Amazon Shares
Naira4 weeks ago
Dollar to Naira Black Market Exchange Rate January 26th, 2024
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Company News4 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024
Education4 weeks ago
WAEC: Over 8,000 Candidates Register for First Series of Computer Based-WASSCE in Nigeria
Banking Sector3 weeks ago
CBN Accuses Banks of Hoarding $5 Billion in Foreign Currencies
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 30th, 2024