In January, Jigawa State commenced the payment of workers’ pensions and gratuities. This is the third phase of such quarterly payments since Governor Umar Namadi assumed power in the state, and over N7 billion was released.
Upon assumption, Governor Namadi constituted a committee under the chairmanship of former state Head of Civil Service, Alhaji Mustapha Aminu (Wamban Dutse), to review the operation of the State and Local Government Contributory Pension Board and recommend how to improve and reposition the Board to meet up with contemporary challenges and global standard.
Though Jigawa State has been a role model and a reference point in terms of effective pension management and prompt payment of workers’ entitlements for over two decades, Governor Umar Namadi’s support and intervention have enabled the system to continue to take the lead in Nigeria.
As workers in another state of the federation spent 4- 8 years struggling to get their gratuity after 35 years of service in Jigawa state, paying workers pension and gratuity at one due is not an issue because of the reform.
Workers in Jigawa state have confidence in the State and Local Government Contributory Pension Board as it has never failed them in ensuring the safety and prosperity of their monthly contribution as well as approving to pay them back at the right time.
Between February 2023 and March 2024, the board experienced unprecedented challenges, to the extent that none of the quarterly gratuity payments were made. This prompted the establishment of Alhaji Mustapha Aminu’s lead committee to rescue the situation.
The Mustapha Aminu Committee’s recommendations included approving bailout funds to clear the pension and gratuity backlog and continuing with timely payments until the pension assets investment matured.
Other recommendations made were that the government ensure the payment of state and local government monthly contributions and deductions from workers’ salaries and employ additional workers to boost the contribution and bridge the huge manpower gap in the state civil service.
In response to the committee’s recommendation in April 2024, Governor Namadi approved N2 billion as a bailout to the Pension Board. The money was used to settle the gratuity and other related entitlements of 709 workers excited from the state, local government, and Local Education Authority service in the state.
In August 2024, Governor Namadi also approved the release of N3,422,239,826.32 billion for the payment of 1,331 workers who exited from active service on attainment of thirty-five years in service and those who died while in active service.
The payment was categorized into four, the first batch of 1001 retired staff consist of those who retired either by reaching the mandatory retirement age of 35 years in service or sixty years by birth were paid N2,579,605,965.12 billion.
The second category of 241 staff are those who died while in active service where the sum of N730,367,087.60 million was paid to their relatives, while the third batch consist of 84 retirees who retired from service and started receiving monthly pension but died before reaching their minimum period of five years after retirement. Those people were paid N109, 561, 313. 67 million.
The last batch of beneficiaries were those who did not contribute up to a period of five years, and the law stated that for every staff to qualify to be paid from the scheme must him contribute for a minimum period of five years under this category, one person was paid the sum of N2,705,459.02 million including 15% interest.
In January 2025 the sum of N1,543 billion was released for the payment of terminal benefits to 609 who retired from active service on attainment of thirty-five years in service between the period of August to December 2024.
The State and Local Government Contributory Pension Scheme Board has already commenced the payment exercise.
According to the Board Executive Secretary, Dr. Bilyaminu Shitu Aminu, the payment was categorized into four categories as usual, first batch of 465 of those who retired either by reaching the mandatory retirement age of 35 years in service or sixty years by birth were paid N1,173,946,287 billion.
The second category of 103 staff members is those who died while in active service, and their relatives were paid N315,023,121.01 million; the third batch consists of 39 retirees who retired from service and started receiving monthly pensions but died before reaching their minimum period of five years after retirement. These people were paid N54,193,759.77 million.
The last batch was beneficiaries who did not contribute for a period of five years. The law stated that for every staff member to qualify to be paid from the scheme, he had to contribute for a minimum period of five years. Under this category, we have paid two people N749,010.31 million, including 15% interest.
Other recommendations made by the Mustapha Aminu-led committee included recruiting more permanent and pensionable workers to fortify the monthly contribution to the pension board. Under this, Governor Umar Namadi has already recruited and presented offers of employment to over 5,000 successful applicants, mostly teachers and health workers.
On different occasions, Governor Umar Namadi has repeatedly said, “Civil servants are the engine room of his government; they propel the implementation of his 12-point agenda design to make Jigawa great; they are critical partners in the project. Therefore, he vowed to create an enabling environment for them to play the expected role.
Governor Namadi has already commenced the payment of the N70,000 minimum wage with convincing consequential adjustments (increases). He also approved N3 billion in Agri loans for civil servants to support workers’ having more sources of income for a better life.
Today, the average Jigawa worker has no fear of their future under Governor Umar Namadi’s leadership, as they have job security and timely payment of monthly salary, pension, gratuity, and other entitlements.
With the current reforms and sincere commitment of Governor Namadi, staff, and management of Jigawa State and the Local Government Contributory Pension Board, the state pension will continue to be one of the reliable, viable pension systems worth emulation in Nigeria and beyond.
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