The House of Representatives has summoned the Governor of the Central Bank of Nigeria, Olayemi Cardoso, to explain alleged breaches of pension agreements and the non-payment of benefits to retired employees of the bank.
This followed the adoption of a motion moved by Hon, Hussaini Jallo representing Igabi Federal Consitituency of Kaduna state.
Presenting 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”, Hon. Jallo expressed concern over alleged non-compliance with contractual agreements governing the pension entitlements and welfare of retired CBN employees.
The motioned noted that “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.
He alleged that some pensioners had been excluded from general pension increases on the grounds of additional or extra-statutory demands that might not be consistent with applicable laws, binding agreements or approved pension policies.
Jallo further disclosed that the number of CBN pensioners had declined from 5,104 in 2011 to approximately 3,000, representing a reduction of more than 2,100.
He said the figures translated to an average loss of 140 pensioners annually, adding that the mortality rate was likely to increase as the surviving retirees advanced in age.
The lawmaker warned that prolonged delays in pension payments could expose elderly and vulnerable retirees to poverty, ill health and avoidable loss of life.
He argued that retirees who had served the country deserved fairness, transparency and the prompt payment of all benefits lawfully due to them.
“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,” he said.
The motion received overwhelming support from lawmakers when it was subjected to a voice vote during plenary presided over by Speaker Tajudeen Abbas.
Following its adoption, the House urged the CBN and other relevant authorities to verify and pay all outstanding arrears lawfully due to affected pensioners within a reasonable and clearly defined period.
It also called for the extension of applicable general pension increases to eligible pensioners in accordance with relevant laws.
The House further invited Cardoso and other relevant officials, alongside pension administrators, regulators and representatives of affected pensioners, to appear before it and provide explanations, as well as submit relevant documentary evidence.
It mandated its Committee on Pension to investigate alleged non-compliance by the CBN with contractual agreements concerning the administration and payment of pension benefits to its retired employees, with particular attention to the terms and obligations contained in the agreements.
The committee was also directed to examine the non-implementation of the harmonisation policy, including the circumstances surrounding its approval, reasons for the delay, the amount of outstanding arrears and the consequences for affected pensioners.
It is also expected to investigate the exclusion of eligible pensioners from general pension increases on the basis of extra-statutory demands and determine whether such actions comply with applicable laws, contractual obligations and approved pension policies.
The committee will review relevant documents, including contractual agreements, policy circulars, payment records and actuarial reports, to establish responsibility for any administrative failures or breaches.
It is expected to recommend appropriate corrective measures, including the non-discriminatory extension of applicable general pension increases to all eligible pensioners in line with relevant laws and approved policies.
Credit: Punch Except the Headline