Retirees from Ebonyi, Anambra, and Enugu States in Nigeria are frustrated over ongoing Pension payment delays. These delays are caused by administrative hurdles that prevent timely disbursement to several retired government workers nationwide. As a result, many individuals expecting financial Security in Retirement find themselves in difficult situations due to extended waiting times. Despite dedicated service and consistent pension contributions during their careers, some retirees report waiting for years after retirement only to receive partial lump sums or, in some cases, no payments.
In a recent News Agency of Nigeria (NAN) survey, retirees expressed frustration with their benefit delays. Some revealed they have waited up to two years without receiving their entitlements despite filing the necessary applications during their retirement period. The escalating problem is particularly noticeable in Ebonyi State, where former civil employees in the capital city of Abakaliki demand prompt changes to the National Pension Commission (PENCOM) to enhance the processing of annuities, making it more effective and streamlined. Dr. Mathew Odono, the Director of the National Orientation Agency (NOA) in Ebonyi State, expressed that this extended delay has rendered life extremely difficult for individuals who depend on their benefits after years of dedicated service.
Stakeholders expressed frustration over delays in senior disbursements.
Having retired in March 2024, Odono disclosed that he has yet to receive any benefit payments or severance, having adhered to all necessary procedures. Annuity payment delays can be traced to multiple reasons, such as the slow transfer of funds to administrators and PENCOM’s internal inefficiencies. Many stakeholders contend that the ultimate disbursement of funds adds extra pressure on retirees’ finances and demands a revision of the Pension Reform Act 2024. Mrs. Happiness Okonkwo, an attorney, advocates for this revision, underscoring that retirees’ savings accumulated over 35 years of work should be made available without delay.
Okonkwo views the circumstances as inequitable, emphasising that public employees are entitled to the assurance that their benefits will be received on time following many years of dedication. Dr. Arinze Udechukwu, the Zonal Coordinator for Leadway Pension Administrator, provided additional insights into the matter, linking the government’s persistent delays to slow remittances to annuity fund administrators. He clarified that under the Pension Act, seniors are entitled to withdraw a portion of their benefit as a one-time payment at retirement, with the remainder disbursed through monthly instalments.
Udechukwu advised pensioners to gain skills while still in employment.
However, the disparity between laws and their real-life applications puts many seniors in financial uncertainty. Udechukwu recommended that civil servants approaching retirement take the initiative to secure their financial well-being by enrolling in annuity programs that provide advice on savings and investment. He additionally urged them to acquire skills or take up a Trade while still working, cautioning that finding a profession after retirement could be difficult, particularly due to the monetary pressures resulting from postponed benefit payments.
Julius Ezema, a prominent civil rights advocate, joined the increasing calls for reform. He proposed that annuity fund administrators initiate benefit processing six months before a civil servant’s retirement. Ezema contended that this strategy would ensure prompt benefit disbursal and alleviate many former workers’ difficulties. Ezema emphasised that the challenges caused by postponed payments are serious, with some elderly individuals passing away before they can access their benefits. He underscored the urgency of timely disbursements to ensure seniors can enjoy a respectable retirement and reduce the hardships inflicted by administrative delays.
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Meanwhile, a recent finding from PUNCH indicates that the benefit debts owed by federal and state governments have exceeded #193 billion, worsening the fiscal difficulties for retirees. While states such as Zamfara, Benue, Kaduna, Kano, and Nasarawa have tried to alleviate their benefit deficits, the federal government still has a remaining #88 billion in annuity contributions to fulfil. Additionally, other states are struggling with an extra #105 billion in unpaid liabilities. This accumulation of delays intensifies the distress for seniors, who witness their rightful benefits postponed even more as debts pile up at the federal and state levels.