A recent protest by retired Nigerian police officers outside the Police Force headquarters in Abuja, the country’s capital, has drawn attention to a major challenge that has rocked the country’s Police force for years and has been the subject of many debates. The officers gathered to voice their discontent over what they describe as “peanut” pensions and gratuities.
One of the protesters was Godwin Tom, a Deputy Superintendent (DSP) and a 35-year veteran of the force. He and the other protesters have exposed the deep-seated issues within Nigeria’s pension system, particularly for public servants in the security sector.
Speaking to news reporters amidst raised placards and uniformed officers, he articulated the plight of many retirees. “I served for 35 good years, and I was given N1.7 million ($1,097). I am not happy any longer. I am pushed to the wall. I cannot go home because of the meagre thing that is given to me on a monthly basis. It is unacceptable. I am pleading that Nigerians should come to our help,” he said, as he struggled with his emotions.
Some of the placards read “We Dedicated Our Lives to Serve Our Fatherland” and “NASS Exit Police from CPS,” clearly expressing the protester’s frustrations and their demand to be removed from the country’s Contributory Pension Scheme (CPS) and to be returned to the older Defined Benefits Scheme (DBS). According to retirees from the Police, the CPS, which was introduced as part of wider pension reforms, has failed to provide adequate retirement benefits, especially for long-serving officers like Tom.
The CPS is part of the country’s pension reforms, which was introduced 11 years ago to address major challenges, like corruption, within the previous pension system. The scheme mandates employees and employers to contribute to a retirement savings account, which is managed by Pension Fund Administrators (PFAs). It was designed to ensure a pre-funded model for pension administration that would create a pool of funds to be invested in the country’s economy.
The implementation of the CPS has been criticised by public sector workers, especially Police officers, who say the transition has been very contentious. It is not the same for other security agencies such as the military and the Department of State Services (DSS), who operate under different pension arrangements.
The Nigeria Police Force Pensions Limited, a registered pension administrator, manages the pension funds for police officers. The contributions are invested in various financial instruments, including bonds and stocks. However, retirees like Tom argue that the returns are insufficient, especially given the rising cost of living and the economic challenges facing Nigeria. Inflation, currently hovering around 34.19% as of July, has cut the value of their pensions. This it harder for them to meet their basic needs.
The protest is part of a larger wave of discontent among public sector retirees. Other retired civil servants, teachers, and health workers have also spoken out about inadequate pensions. The unease exposes flaws in Nigeria’s pension management, which is made worse by economic policies that have not kept pace with the needs of many Nigerians.
The reason for calls to exit the CPS and return to the DBS, some say, is because the DBS allowed payment of pensions directly from government coffers. Different from the CPS’s lump-sum payment and periodic pensions, depending on the Retirement Savings Account balance, benefits under the DBS are predetermined based on a formula considering years of service and final salary, and retirees receive a fixed monthly pension and a gratuity that are not tied to individual contributions.
In spite if this, the process experienced delays and corruption. The CPS was designed to be more transparent, but its inadequacies have led many to call for a return to the old system, in spite of its flaws. Critics of the CPS call for a pension arrangement that recognises the specific needs of different sectors, especially those in security. They say Police retirees should enjoy benefits similar to those enjoyed by the military and intelligence agencies.
The Nigerian government has come under heavy fire for its economic policies, especially the removal of fuel subsidies and the floating of the Naira. The protest is clearly a response to the effect of these policies on many lives, including retirees living on fixed incomes.
Many retirees, like Tom, have given decades of their lives to public service, often at great personal risk. Many face dire financial straits, unable to afford basic needs. The story of a retired woman who finally received a N1.4 million (about $ 900) gratuity after waiting over two years, and now lives on a monthly pension of just N22,000 (about $14), highlights the struggles many retirees endure.
The protest is a reminder of the challenges facing Nigeria’s pension system. The voices of the Police retirees have drawn public attention to the urgency of the situation and the pressing need for a resolution that honours the service and sacrifices of Nigeria’s public servants.
