Federal Government retirees are facing mounting hardships as the government fails to release funds for accrued pension rights in the first half of 2024. This latest delay compounds the problem, with the FG’s indebtedness to retirees over the past 16 months estimated at a staggering N230 billion.
Experts attribute this delay to a 21.3% decline in pension provisions in the 2024 Appropriation Act. The situation is further exacerbated by the government’s failure to implement its policy on upward review of pension amounts under the Contributory Pension Scheme (CPS) for 15 years, despite legal requirements for reviews every five years.
Stakeholders, including PenCom and various pensioner groups, are calling for urgent action to address the plight of retirees. Some groups have even suggested boycotting investments in FG securities, given that the government’s borrowing comes mainly from pension assets while failing to meet its obligations to pensioners.
The delay in payments has dire consequences for retirees, many of whom rely solely on their pensions for sustenance. As the crisis deepens, there are growing concerns about the long-term sustainability of the pension system and the government’s commitment to the welfare of its retired workforce.
