Reps give NNPC Pension Fund three months to clear retirees’ arrears
The House of Representatives on Thursday directed the Nigerian National Petroleum Corporation Pension Fund Limited to begin payment of all outstanding pensions and arrears owed to its retirees within a three-month timeframe.
The House also mandated its Committee on Pensions to investigate the operational activities of the NNPC Pension Fund Limited, comb through its financial records, investment portfolios, and asset-management practices, and recommend sanctions where infractions are established.
The resolution followed the adoption of amendments to a motion sponsored by Muhammad Shehu, a member representing Fagge Federal Constituency of Kano State.
Appealing to his colleagues to support the motion, Shehu lamented the frustrations faced by retirees and contributors under the scheme.
He condemned what he described as “inappropriate operations, injustice, financial mismanagement, non-payment of entitlements and gross negligence” by the Fund’s management.
The NNPC Pension Fund Limited originated as a Trust Fund in 1983 to manage the pension assets of the NNPC and the Nigerian Upstream Petroleum Regulatory Commission.
It was reconstituted as the Incorporated Trustees of the NNPC Pension Fund in 1986, and later transformed into NNPC Pension Fund Limited following the enactment of the Pension Reform Act 2014.
Shehu reminded lawmakers that, “The objectives of the Pension Reform Act, 2014, are to establish a uniform set of rules, regulations, and standards for the administration and payment of retirement benefits across the Public Service of the Federation.
“The Retirement Savings Accounts remain the only financial lifeline available to retirees upon retirement.”
Despite this, he said, “Most NNPC retirees are unable to access retirement funds, despite fulfilling all statutory requirements under the Contributory Pension Scheme, causing widespread hardship, inequality, and disillusionment.”
The lawmaker further accused the Pension Fund’s management of routinely flouting judicial directives.
He added, “The management of NNPC Pension Fund Limited has consistently failed to comply with court orders directing payment of harmonised pensions to retirees, leaving the aged retirees to staged protests.”
He noted that the Fund has violated Section 50(1)(a) of the PRA 2014 and Clause (b) of the approved conditions, which states that “The scheme must be fully funded at all times and that any shortfall must be made up within 90 days.”
The lawmaker added that years of “inappropriate financial management, lack of transparency, and disregard for regulatory standards” have weakened trust in the pension system.
He lamented, “Many of the retirees, after decades of dedicated service to the nation, are presently battling health and financial difficulties due to the inaction and negligence of those entrusted with their welfare.
“The current framework of the NNPC Pension Fund Limited is inconsistent with international best practices, and there is an urgent need for the Federal Government to adopt an international standard pension fund structure and framework for sustainable investment, transparency, and accountability in pension management.”
