Reps Invite CBN Governor Over Alleged Breach of Pension Agreements

By James Adamu

The House of Representatives has resolved to summon the Governor of the Central Bank of Nigeria, Olayemi Cardoso, to answer questions on alleged violations of pension agreements and the failure to pay retired staff of the apex bank their benefits.

The decision came after lawmakers adopted a motion on Tuesday seeking an investigation into the CBN over what was described as a breach of approved pension agreements, the non-implementation of the harmonisation policy and the exclusion of pensioners from general pension increases.

The motion was sponsored by Hussaini Jallo, the lawmaker representing Igabi Federal Constituency of Kaduna State.

Jallo told the House that the CBN had allegedly failed to honour contractual agreements covering the pension entitlements and welfare of its retired employees.

He warned that the flawed implementation of the harmonisation policy may have created disparities in pension benefits and led to a build-up of unpaid arrears, leaving retirees in financial distress.

“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.

The lawmaker also flagged allegations that some pensioners were shut out of general pension increases because of extra-statutory demands that may not align with the law, binding agreements or approved pension policies.

He disclosed that the number of CBN pensioners had fallen from 5,104 in 2011 to about 3,000 — a loss of more than 2,100 — averaging 140 deaths a year, with the mortality rate likely to rise as the remaining retirees grow older.

Jallo cautioned that continued delays in pension payments could push elderly and vulnerable retirees into poverty, ill health and avoidable death, insisting that those who served the country deserved fairness, transparency and the prompt payment of all benefits lawfully owed 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 was overwhelmingly supported when put to a voice vote during plenary presided over by Speaker Tajudeen Abbas.

Following its adoption, the House asked 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 line with relevant laws.

Cardoso and other relevant officials, alongside pension administrators, regulators and representatives of affected pensioners, are to appear before the House to explain the situation and submit relevant documentary evidence.

The House mandated its Committee on Pension to investigate alleged non-compliance by the CBN with contractual agreements on 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 is also to examine the non-implementation of the harmonisation policy, including the circumstances surrounding its approval, the reasons for the delay, the amount of outstanding arrears and the consequences for affected pensioners.

It is further 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.