The Pension Fund Operators Association of Nigeria (PenOp) has raised concerns over the Federal Government’s prolonged delay in disbursing accrued pension rights to retired civil servants. This issue, which has persisted for nearly 18 months, has left many retirees facing significant financial hardship.
Oguche Agudah, the CEO of PenOp, highlighted the problem during a recent interview. He explained that accrued rights are pension benefits earned by public servants who worked for the Federal Government before the 2004 pension reform. These rights are separate from the regular pension contributions made to Retirement Savings Accounts.
Despite assurances from the Federal Government, the payment of these accrued rights remains stalled. No disbursements have been made since the start of President Bola Tinubu’s administration.
The delay has severe consequences for retired civil servants who rely on their pensions for survival. Many are struggling to meet their basic needs due to the prolonged lack of payment.
The Federal Government has allocated funds to clear the pension arrears, but the actual disbursement has been slow. Frustrated retirees recently staged a protest at the Federal Ministry of Finance, demanding immediate payment of their entitlements.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, acknowledged the issue and assured the protesters that the government is committed to resolving it. He stated that N22 billion had already been disbursed, with the remaining funds to be paid by the end of the year.
While the government’s promises are encouraging, the reality for retirees remains grim. The 18-month delay in paying accrued rights is a serious problem that requires urgent attention. PenOp and other relevant stakeholders are urging the Federal Government to expedite the process and ensure that retired civil servants receive their rightful entitlements without further delay.
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