A STATE’s public servant is anyone who works in the public service of the state and local government in any capacity. The state public service is responsible for the implementation of policies, programmes and projects of any government in power. It daily administers government’s activities and sees to the determination and realisation of state goals; it provides various services to citizens to meet their needs, which include health, education, public utilities as well as registration of births, marriages and deaths; it also generates revenue for the state, among other services.
“Nineteen years into pension reforms in Nigeria and the introduction of the CPS under the Pension Reform Act 2004, which repealed the Pension Act 1990 that was of universal application in the federal and states public services, Abia State government enacted a law on the CPS in 2017 and stopped at that level.”
The framers of the Federal Republic of Nigeria 1999 Constitution, as amended, taking into consideration the important roles public servants play in the administration and development of the state, guaranteed their pension to enable them to leave a life in retirement that is closer to what they were used to during their active service.
Section 210(1) of the Constitution provides that: “Subject to the provisions of subsection (2) of this section, the right of a person in the public service of a state to receive pension or gratuity shall be regulated by law.
Subsection (2) provides that: “Any benefit to which a person is entitled in accordance with or under such law as is referred to in subsection (1) of this section shall not be withheld or altered to his disadvantage except as is permissible under any law, including the code of conduct.”
Subsection (3) provides that: “Pension shall be reviewed every five years or together with any State Civil Service salary reviews, whichever is earlier.”
Nigeria in 2004 carried out a comprehensive reform of its pension schemes, with the promulgation of Pension Reform Act 2004, which was repealed by and replaced with the Pension Reform Act 2014, effective on 1st July, 2014. The Act established a Contributory Pension Scheme (CPS) for employees in the public service of the federation, Federal Capital Territory (FCT) and the private sector. Employees of the public service of states and local governments were excluded from the coverage of the Act because state governors opposed their inclusion on the grounds that pension is not one of the items that is in the exclusive legislative list of the Constitution.
In 2006 or thereabout, the National Council of States decided that every state should enact its own pension law, adopting the CPS model already in operation in the federal public service and the private sector using a draft bill presented to the Council for that purpose by the National Pension Commission (PenCom).
The decision of the Council was based on the fact that the Pension Act 1990, which was of universal application in the public service of the federation, states and local governments had been repealed by section 99(1)(a) of the Pension Reform Act 2004, leaving states public servants with no law guaranteeing their pension, contrary to the provision of section210(1) of the Constitution.
We are going to be discussing the status of implementation of the CPS in states, in alphabetical order. Today we will be starting with ABIA STATE.
Abia State enacted the Abia State Pension Reform Law, 2017 on March 20, 2017.
The state is state is yet to implement any other milestone towards full implementation of the CPS, including the following:
- Yet to establish a Pension Bureau to oversee the process of implementation of the CPS;
- Yet to commence the registration of its employees with Pension Fund Administrators (PFAs;
- Yet to commence the remittance of pension contributions;
- Yet to conduct an actuarial valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;
- Yet to open Retirement Benefits Bond Redemption Fund Account;
- Yet to commence funding of Accrued Rights, and
- It has no Group Life Insurance Policy.
(This information is available on the website of the National Pension Commission (PenCom)).
“The level of poverty, destitution and deprivation that has been foisted on pensioners in Abia State and members of their families as a result of the failure of successive state governments to comply with the provisions of the Constitution by putting in place appropriate structures for the payment of pension to retired public servants of the state has become a matter of great concern to Abia state public servants, who are not sure of what will be their fate, when they retire. Meanwhile Abia state is reported to be among the 22 states that are currently paying life pension to their former governors and deputy governors.”
Nineteen years into pension reforms in Nigeria and the introduction of the CPS under the Pension Reform Act 2004, which repealed the Pension Act 1990 that was of universal application in the federal and states public services, Abia State government enacted a law on the CPS in 2017 and stopped at that level.
The following persons have ruled Abia State from the introduction of the CPS in 2004 to 29th May, 2023.
- Orji Uzor Kalu from May 29, 1999 – May 29, 2007
- Theodore A. Orji from May 29, 2007 – May 29, 2015
- Okezie Ikpeazu from May 29, 2015 – May 29, 2023
All these former governors of Abia State as well as their political office holders, collected their salaries and enjoyed benefits attached to their respective offices regularly.
Former Governor Orji Uzor Kalu is currently a senator of the Federal Republic of Nigeria and a chieftain of the ruling party, APC. Theodore Orji was a member of the 9th National Assembly as a Senator of the Federal Republic of Nigeria. Okezie Ikpeazu, on his part, made a failed attempt at moving from Umuahia Government House to the Red Chamber of the National Assembly in the last National Assembly election.
The level of poverty, destitution and deprivation that has been foisted on pensioners in Abia State and members of their families as a result of the failure of successive state governments to comply with the provisions of the Constitution by putting in place appropriate structures for the payment of pension to retired public servants of the state has become a matter of great concern to Abia state public servants, who are not sure of what will be their fate, when they retire. Meanwhile Abia state is reported to be among the 22 states that are currently paying life pension to their former governors and deputy governors.
Comrade Takor was a two term President of NASU, a two term National Treasurer of NLC and an inaugural member of the Board of PenCom. Comrade Takor retired as a Director in federal service and is now a Lagos-based legal practitioner. He is an alumnus of the National Institute of Policy and Strategic Studies (NIPSS), Kuru-Jos, Plateau State.
