A FORMER director with the Bureau of Public Enterprise (BPE), Malam Ibrahim Babagana, has called for an upward review of pension of Nigerian retirees.
Mr Babagana made the call in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday following organised labour’s demand for a living/minimum wage for Nigerian workers.
He said that such upward review would enable the retirees to face the present economic challenges in the country.
NAN reports that organised labour is demanding N250,000, while the government negotiating team proposed N62,000.
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Babagana said there was need to accommodate the retirees in the organised labour demand for increase in the workers’ salary considering the level of hardship.
“The reality on ground is that things are no longer the same; I retired in 2019 and the stipend I was getting then is the same stipend I am still getting in 2024.
“The level of inflation has deepened over the years and the purchasing power of the average Nigerian has changed over the years.
“In real terms, there is a need to improve the stipends retirees are getting because they have worked for the country before they retired.’’
According to him, there should also be a retirement fund for retirees to access, to enable them to establish Small and Medium Enterprises (SMEs).
“This solution should not be left for the government alone; it is a stakeholder thing; it will help but how do you start the process?
“As a public servant, the environment itself has psychologically prepared someone, that in the next couple of years he or she will exit; it has to also be clear that a retiree cannot completely rely on the government.
“During my time, they started preparing us for retirement a year before time but I am postulating that we should prepare people for retirement five years before they exit.
“This will ensure that the person does not become too close to his or her seat but we should not create a scenario where he is psychologically thinking of exiting and going out, then, he will not give his best.
“When you prepare the ground for retirement, it should be done in collaboration with the private sector; it is a combination of public and private sector.’’
Babagana urged the government to show compassion on workers and retirees as the present earnings were no longer sustainable in the present-day Nigeria.
“I observed that when my father retired from service, he already built a house through the loan scheme.
“So, he didn’t have a problem with accommodation; the state took care of the education of his children and he didn’t have challenges with hospital bills because the state took care of that.
“Now, the story is quite different because most of the retirees have to create things by themselves and if you are not opportune, you will be at the receiving end and that is why most retirees die prematurely.
“Imagine a retiree chasing his or her entitlement at the age of 70 because in some organisations, these retirement funds have been misplaced or mismanaged,” Babagana said. (NAN)
