GOVERNOR Alex Otti of Abia State on Thursday, March 22, 2024 signed the Abia State Governors and Deputy Governors Pension Repeal Bill 2024 into law. Abia State House of Assembly had earlier passed the bill to stop the payment of pension to former governors and their deputies in the state for life after their tenures.
The governor had made it clear even before he assumed office that he was not going to continue to implement the law because he was going to utilise the money towards offsetting the backlog of pensions owed Abia State pensioners since 2014.
Governor Otti should not just stop at repealing the law. He should immediately start the implementation of milestones towards full implementation of the CPS
Governor Otti has been receiving praises and accolades for the repeal of the 2017 life pension law for former governors of the state and their deputies, which guaranteed that they maintained lives of luxury through generous pension and other benefits.
It is necessary to bring to the attention of those who may not understand or would be wondering why the governor is receiving such praises and accolades from within and outside the state for that act.
Nigeria, in 2004, carried out a comprehensive reform of its pension administration, with the promulgation of the Pension Reform Act 2004. Section 99(1)(a) of the Act, repealed the Pension Act 1990, which was of universal application in public services of the federation, states and local governments. Ten years after, in 2014, the Pension Reform Act 2004 was repealed and replaced with the Pension Reform Act 2014, effective 1st July, 2014.
The Pension Reform Act 2004 established the Contributory Pension Scheme (CPS) for employees’ in the public services of the the federation, Federal Capital Territory (FCT) and the private sector.
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Employees of the public services of states and local governments were excluded from the coverage of the Pension Reform Act 2004 because state governors opposed their inclusion on the ground that pension is not one of the items listed on the exclusive legislative list of the 1999 Nigerian Constitution (as amended).
With the repeal of the Pension Act 1990, employees of states and local governments where left without any law to guarantee their pensions in line with the provisions of the constitution. 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”.
In order to cure the lacuna created by the repealing of the Pension Act 1990 and the coverage of Pension Reform Act 2004, the National Council of State in 2006 or thereabouts, decided and directed that every state should enact its own pension law, adopting the Contributory Pension Scheme (CPS), already in operation in the federal public service and the the private sector, using a draft bill presented to the Council for that purpose by the National Pension Commission (PenCom).
It was only on 20th March, 2017 that Abia state complied with the directives of the National Council of State by enacting the State Pension Reform Law, 2017 during the tenure of Okezie Ikpeazu who served as governor of the state from May 29, 2015–May 29, 2023. At this time, Abia State had a backlog of pensions owed its workers since 2014.
It may be surprising to some people that the above notwithstanding, Abia happens to be a step ahead of five other states namely: Akwa Ibom, Borno, Cross River, Kwara, Plateau and Yobe. These states do not have any pension law for their civil servants. Moreover, out of these five states, Cross River is the only one without a law that guarantees life pension for former governors and their deputies.
Nineteen years into pension reforms in Nigeria and the introduction of the CPS; and seven years after enacting the state pension law, the state has failed to put any other milestones in place towards the implementation of the provisions of the law.
The following governors have ruled Abia State from the introduction of the CPS in 2004 to 29th May, 2023 when Alex Otti became governor: Orji Uzor Kalu from May 29, 1999–May 29, 2007; Theodore A. Orji from May 29, 2007–May 29, 2015; and Okezie Ikpeazu from May 29, 2015–May 29, 2023.
All these former governors of the state, their deputies as well as other political office holders, collected their salaries and enjoyed benefits attached to their respective offices regularly.
Former Governor Orji Uzor Kalu is currently a senator a chieftain of the ruling party, the All Progressives Congress (APC). Theodore Orji was a member of the 9th National Assembly as senator. Okezie Ikpeazu, on his part, made a failed attempt towards moving from Umuahia Government House to the red chamber of the National Assembly in the last general election.
The level of poverty, destitution and deprivation that has been foisted on Abia State pensioners 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 most Abia state indigenes especially the state public servants, who are not sure of what their fate will be when they retire.
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Governor Otti should not just stop at repealing the law. He should immediately start the implementation of milestones towards full implementation of the CPS, which includes the following:
- Establish a Pension Bureau to oversee the process of implementation of the CPS;
- Commence the registration of state and local governments employees with Pension Fund Administrators (PFAs;
- Commence the remittance of pension contributions;
- Conduct an Actuarial Valuation to determine the Accrued Pension Rights of employees that would be transiting into CPS;
- Open Retirement Benefits Bond Redemption Fund Account; yet to commence funding of Accrued Rights; and
- Take a Group Life Insurance Policy for employees.
Abia is reported to be among twenty-two other states that have pension laws that guarantee life pension to their former governors and deputy governors.
Out of the thirty-six states of the federation and the FCT, twenty-five states have enacted laws on the CPS while six other states have enacted laws on Contributory Defined Benefits Scheme (CDBS); bringing the total number of states with pension law for their states’ civil servants to thirty-one. Very unfortunate and disheartening is the fact that out of the thirty-one, ONLY seven states and the FCT are paying pension based on their state’s pension law. These states are: Lagos, Kaduna, Delta, Ekiti, Jigawa and Osun.
It may be surprising to some people that the above notwithstanding, Abia happens to be a step ahead of five other states namely: Akwa Ibom, Borno, Cross River, Kwara, Plateau and Yobe. These states do not have any pension law for their civil servants. Moreover, out of these five states, Cross River is the only one without a law that guarantees life pension for former governors and their deputies.
Akwa Ibom State in 2014, or there about, enacted a life pension law for former governors and their deputies, leading to the state’s former governors and the deputies maintaining lifestyles of luxury through generous pension.
It was in 2019, fifteen years after the establishment of the CPS at the federal level and the private sector, and thirteen years after the directive of the National Council of States, that the state drafted the Akwa Ibom State Pension Reform Bill. The bill was presented to the State House of Assembly. The bill is yet to be passed into a law.
The following governors have ruled Akwa Ibom state from the time of the repeal of the Pension Act 1990 in 2004 to date: Victor Attah from May 29, 1999–May 29, 2007; Godswill Akpabio from May 29, 2007–May 29, 2015; Udom Gabriel Emmanuel from May 29, 2015–May 29, 2023, and Umoh Bassey Eno from May 29, 2023–date.
Borno State in 2005, enacted the Borno State (Grant of Pension to Governors and Deputy Governors) Law, 2005, which was amended in 2009. The law guarantees a luxury life for the state’s former governors and their deputies for life.
The state only drafted a bill on the CPS for the state civil servants in 2012. The bill is yet to be pass into law.
The following persons have ruled Borno state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date: Mala Kachalla from 29 May, 1999–29 May, 2003; Ali Modu Sherrif from 29 May, 2003–29 May, 2011; Kashim Shetima from29 May, 2011–29 May, 2019; and Babagana Umara Zulum from 29 May, 2019–date.
Kwara State in 2011, the state enacted a law that guaranteed life pension in favour of former governors and former deputy governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
The state government presented a bill on the CPS to the State House of Assembly in 2016. The Bill has not been passed by the State House of Assembly to date.
Nothing has so far exposed how self-centred members of the Nigeria political ruling class are like the pension laws for former governors and their deputies enacted in twenty-two states of the Federation vis-à-vis enacting pension laws for state civil servants.
The following persons have ruled Kwara state as Governors from the time of the repeal of the Pension Act 1990 in 2004 to date: Muhammed Lawal from 29 May, 1999–29 May, 2003; Bukola Saraki from 29 May, 2003–29 May, 2011; Abdulfatah Ahmed from 29 May, 2011–29 May, 2019; and Abdulrazaq AbdulRahman from 29 May, 2019–date
However, in January, 2021 Governor AbdulRahman AbdulRazaq signed into law a bill that repealed the pension law for former governors and their deputies.
Plateau State drafted a bill on CPS in 2021 and remains at bill stage to date.
The following persons have ruled Plateau state from the introduction of the CPS in 2004 to 29th May, 2023: Joshua Dariye from 29 May, 1999–18 May, 2004; Chris Ali (Sole Administrator) from 18 May, 2004–18 November, 2004; Joshua Dariye from 18 November, 2004–13 November, 2006; Michael Botmang from 13 November, 2006–27 April, 2007; Joshua Dariye from 27 April, 2007–29 May, 2007; Jonah David Jang from 29 May, 2007–29 May, 2015; Simon Lalong from 29 May, 2015–29 May, 2023; and Caleb Mutfwang from 29 May, 2023–date.
The state has a life pension law in favour of former governors and their deputies, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Yobe State drafted the Yobe State Pension Reform Law in 2020. Unfortunately, it stopped at that stage.
The following persons have ruled Yobe from the introduction of the CPS in 2004 to 29th May, 2023: Abubakar Ibrahim from 29 May, 1999–29 May, 2007; Mamman Bello Ali from 29 May, 2007–26 January, 2009; Ibrahim Gaidam from 27 January, 2009–29 May, 2019; and Mai Mala Buni from 29 May, 2019–Incumbent.
Old age for civil servants in majority of states in Nigeria now looks like a curse. People who have given the better part of their lives to the service of their states are leaving in abject poverty and destitution while those who were governors or deputy governors for eight years are living lives of luxury and opulence.
The state has a life pension law in favour of former governors and former deputy governors, which guarantees that these former political office holders of the state maintain lives of luxury through generous pension and other benefits.
Nothing has so far exposed how self-centred members of the Nigeria political ruling class are like the pension laws for former governors and their deputies enacted in twenty-two states of the Federation vis-à-vis enacting pension laws for state civil servants.
Out of the thirty-six states of the federation and the FCT, twenty-five states have enacted laws on the CPS while six other states have enacted laws on Contributory Defined Benefits Scheme (CDBS); bringing the total number of states with pension law for their states’ civil servants to thirty-one. Very unfortunate and disheartening is the fact that out of the thirty-one, ONLY seven states and the FCT are paying pension based on their state’s pension law. These states are: Lagos, Kaduna, Delta, Ekiti, Jigawa and Osun.
The remaining twenty-three states that have enacted pension laws are not paying pension. If they are doing so, then it is not based on the provisions of their own laws. This is because they have not put any mechanism in place as provided for in their laws for the implementation.
Old age for civil servants in majority of states in Nigeria now looks like a curse. People who have given the better part of their lives to the service of their states are leaving in abject poverty and destitution while those who were governors or deputy governors for eight years are living lives of luxury and opulence.
Greed and self-centredness have robbed our political leaders the basis of humanity, which is the capacity to think of others. It has caused governance in Nigeria to lack empathy.
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.
