Reps summon CBN governor Cardoso over unpaid pension arrears

The House of Representatives has asked the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, to appear before lawmakers to answer questions about pensions owed to the bank's retired staff.

The decision followed a motion adopted by voice vote at Tuesday's plenary, presided over by Speaker Tajudeen Abbas. The motion was moved by Hussaini Jallo, who represents Igabi Federal Constituency in Kaduna State.

Jallo told the House that retired CBN workers may have been shortchanged in three ways: agreements on their pensions were allegedly not honoured, a harmonisation policy was allegedly not properly carried out, and some retirees were allegedly left out of general pension increases.

He said the flawed harmonisation may have created gaps in what different pensioners receive and left arrears piling up, pushing retirees who depend on the money into hardship.

On the exclusions, Jallo said some pensioners were reportedly dropped from general increases because of extra demands that may not be backed by law, binding agreements or approved pension rules.

Fewer pensioners, older survivors

The lawmaker also gave a figure that speaks to how long the matter has dragged. He said the number of CBN pensioners has fallen from 5,104 in 2011 to about 3,000 now, a drop of more than 2,100 people, or roughly 140 a year.

He warned that the pace could quicken as the remaining retirees grow older, and that long delays in paying them could deepen poverty, worsen health and lead to deaths that could have been avoided.

According to him, people who gave years of service to the country deserve fair treatment, openness and prompt payment of what the law says is theirs.

After the voice vote, the House asked the CBN and other relevant authorities to confirm all outstanding arrears owed to eligible retirees and pay them within a clear, reasonable timeframe. It also called for eligible pensioners to get the general pension increases that apply under the law.

Cardoso and other CBN officials, pension administrators, regulators and representatives of the affected pensioners are to appear before the House with explanations and documents.

The Committee on Pension was directed to investigate the alleged breaches of the pension agreements, including how the harmonisation policy was approved, why it was delayed and how much is owed. It will also look at whether barring some retirees from general increases is lawful, and review agreements, policy circulars, payment records and actuarial reports.

The committee is expected to establish who is responsible for any failures and recommend fixes, including extending general increases to all qualified pensioners without discrimination.

What happens next

The committee's findings and Cardoso's appearance will show whether the CBN agrees with the lawmakers' figures and allegations.

For the roughly 3,000 retired CBN staff, the immediate question is whether the arrears are confirmed and paid, and whether those left out of past increases are brought back in.