Forgotten Heroes: Who Will Save Nigeria’s Retirees From Pension Woes?

How can a nation inspire motivation, ethics, and commitment in its workforce when retirement brings so much uncertainty and neglect?
This pressing question hangs over Nigeria’s civil service, leaving employees feeling increasingly anxious as they near the end of their careers.
For years, Nigerian retirees have endured hardship from a failing pension system.
This predicament undermines workforce morale and fosters corruption, as some employees resort to unethical practices to secure uncertain futures.
In contrast, developed nations like the United Kingdom boast about a structured, transparent, and reliable pension systems.
According to the most recent data from the National Pension Commission (PenCom), Nigeria’s pension industry regulator, around 10 million people currently hold pension accounts.
This represents roughly 15-17 per cent of the country’s workforce, greatly falling short of PenCom’s target set in 2007.
It aims to cover at least 30 per cent of the working population with pension plans by 2024.
In comparison, more than half of the working-age population in the U.S participate in some form of retirement plan, and this number exceeds 70 per cent in the United Kingdom.
According to Mr Bright Lucky, a civil servant in the UK, the clarity and predictability of pension schemes there serve as morale boosters, giving workers the confidence to plan for life after retirement.
“In the UK, I’ve monitored my pension from the start. The transparency and efficiency make all the difference,” he said, noting the contrast with Nigeria’s opaque system.
The plight of retirees in Nigeria predates the return to democratic governance in 1999.
For example, in the military era, it was common to see retired officers camping under bridges in Abuja, staging protests to demand unpaid pensions and gratuities.
Tragically, many of these retirees died without ever receiving their entitlements.
Even after two and a half decades of democracy, this crisis persists.
Bureaucratic inefficiencies, widespread corruption, and poor management of pension funds continue to plague retirees.
As a result, delays in payments, irregular disbursements, and inadequate pension amounts remain the norm, eroding retirees’ dignity and plunging them into poverty.
In an attempt to address these inefficiencies, Nigeria introduced the Contributory Pension Scheme (CPS) through the Pension Reform Act.
However, in spite of its good intentions, implementation challenges and rampant corruption have undermined its effectiveness.
For instance, Mrs Elizabeth Ajibola, a retiree from Ahmadu Bello University, exemplifies this reality.
Having retired in March 2023, she has yet to receive her pension or gratuity nearly two years later.
Despite being managed by a prominent Pension Fund Administrator (PFA), she remains trapped in a cycle of endless waiting, unable to afford basic necessities.
Ajibola’s story is far from isolated.
Across the nation, retirees share similar tales of neglect, mismanagement, and exploitation by PFAs.
Consequently, many have turned to platforms like the popular ‘Brekete Family radio show’ in Abuja to voice their grievances, exposing fraudulent practices and the indifference of pension administrators.
The consequences of Nigeria’s failing pension system extend beyond financial hardship.
According to Mr Mohammed Suleiman, a retiree from the News Agency of Nigeria (NAN), the fear and anxiety associated with retirement have taken a severe toll on retirees’ mental and physical health.
“The rate of deaths among retirees is alarming. Many die not because of old age but from stress, neglect, and the degradation they face in their final years,” Suleiman explained.
Furthermore, he added that the uncertainty surrounding pensions has driven many public and private sector employees into corrupt practices, as they scramble to secure their futures and provide for their families.
Unsurprisingly, the pension crisis has drawn the attention of concerned stakeholders.
Suleiman, for instance, called on the National Assembly to enact decisive reforms, urging pension administrators to prioritise retirees’ welfare.
In addition, he appealed to the media to amplify retirees’ voices, advocating for a system that honours their contributions to the nation.
Similarly, Mr Bunmi Gabriel, a former pension administrator, highlighted systemic flaws in the Pension Act.
He observed that the legislation often favours PFAs and the National Pension Commission (PENCOM), leaving retirees vulnerable and marginalised.
Additionally, Gabriel pointed out that many retirees suffer because their employers fail to remit housing savings or provide repatriation allowances.
These gaps, he argued, exacerbate the struggles retirees face, even for those who eventually receive pensions.
Meanwhile, Mrs Chinyere Nwachukwu, a serving civil servant, warned that the government’s neglect of retirees undermines the social contract between the state and its citizens.
She explained that the absence of a robust post-retirement plan discourages ethical behaviour in the workforce, as employees resort to self-serving practices to secure their futures.
“The plight of Nigeria’s retirees is not just a financial crisis; it is a moral and humanitarian failure,” Nwachukwu stated.
She further argued that pension payments must be timely, consistent, and reflective of retirees’ years of service.
Anything less, she asserted, constitutes a betrayal of their sacrifices and a stain on the nation’s conscience.
Experts and stakeholders have outlined actionable solutions to address Nigeria’s pension crisis, emphasising the need for a comprehensive strategy.
For example, Dr Ahmed Yusuf, a financial analyst specialising in pension management, suggested that the National Pension Commission (PENCOM) be empowered with greater regulatory authority.
“PENCOM must have the tools and autonomy to enforce strict compliance among PFAs. This will ensure transparency and accountability in managing retirees’ funds,” Yusuf stated.
In addition, Mrs Grace Eze, a retired teacher, called for urgent reforms to guarantee prompt and consistent pension payments.
She noted that many retirees experience severe financial strain due to delayed payments.
“It’s heartbreaking to see people who served their country left without basic means of survival. Timely payments are not just a financial issue; they are a matter of dignity,” Eze emphasised.
Furthermore, stakeholders advocate for the establishment of robust social welfare programmes.
For example, Mr Kunle Adebanjo, a labour union representative, stressed the importance of affordable healthcare and housing for retirees.
He argued that these measures would ease the financial burden on pensioners and improve their quality of life.
These recommendations reflect a broad consensus among experts and stakeholders that the government must act decisively.
In conclusion, stakeholders stress that resolving the pension crisis is about restoring trust in governance and ensuring retirees live with dignity. NAN