Reps summon CBN governor Cardoso over unpaid pension arrears

Retired staff of the Central Bank of Nigeria (CBN) may finally get answers on their unpaid pensions after the House of Representatives on Tuesday asked the bank's governor, Olayemi Cardoso, to appear before lawmakers and explain the delays.

The decision followed a motion by Hussaini Jallo, who represents Igabi Federal Constituency in Kaduna State. Lawmakers adopted it by voice vote at a plenary presided over by Speaker Tajudeen Abbas, according to reports from Abuja.

Jallo told the House that the CBN is accused of failing to keep to agreements on how its former workers' pensions are handled. He said the bank's harmonisation policy was either not applied or applied poorly, which may have created differences in what retirees earn and left arrears piling up.

He also raised claims that some pensioners were left out of general pension increases because of extra demands that may not be backed by law or by the agreements the bank signed.

Why it matters to retirees

For the pensioners, the arrears are not small change. Jallo said many of them rely on the money for daily living, and that long delays could push elderly people into poverty and poor health.

He put the fall in the number of CBN pensioners in stark terms: from 5,104 in 2011 to about 3,000 now. That is more than 2,100 retirees gone in roughly 15 years, an average of about 140 a year. Jallo warned that the figure could rise faster as the remaining retirees grow older.

"The House acknowledges the need for legislative oversight to establish the facts," he said, adding that the aim is to make sure every eligible pensioner gets what the law says is due.

The House did not stop at inviting Cardoso. It asked the CBN and other relevant bodies to confirm exactly what is owed and pay the verified amounts within a clear, reasonable timeframe. It also wants general pension increases extended to eligible former staff in line with the law.

Cardoso is expected to appear alongside other CBN officials, pension administrators, regulators and representatives of the retirees. They are to explain the situation and hand over documents to back it up.

What happens next

The House Committee on Pension will lead the investigation. It is to look at the pension agreements, policy circulars, payment records and actuarial reports, and work out who is responsible for any failures.

The committee will also examine why the harmonisation policy was approved but not carried out, how much is outstanding, and whether leaving some retirees out of pension increases breaks the law.

It is expected to recommend fixes, including extending increases to all eligible pensioners without discrimination. BusinessDay reported that the committee has four weeks to report back to the House.

The CBN has not publicly responded to the allegations. Nothing in the motion amounts to a finding of guilt, and the claims are still to be tested by the committee.