Reps Summon CBN Governor Over Unpaid Pensions

The House of Representatives has resolved to summon the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, over alleged violations of pension agreements and the failure to pay retirement benefits to former employees of the apex bank.

The decision followed the adoption of a motion on Tuesday titled, “Need to investigate the Central Bank of Nigeria for alleged breach of approved pension agreements, non-implementation of harmonisation policy and exclusion of pensioners from general pension increases.”

The motion was sponsored by Hussaini Jallo, who represents Igabi Federal Constituency of Kaduna State.

Moving the motion, Jallo expressed concern over the alleged failure of the CBN to honour agreements governing the pension entitlements and welfare of its retired staff.

He said the failure to implement the harmonisation policy properly could have created unequal pension payments and led to mounting arrears, worsening the financial difficulties of affected retirees.

“The House is concerned that the alleged non-implementation and faulty execution of the harmonisation policy may have led to disparities in pension benefits and the accumulation of unpaid arrears, ultimately denying rightful entitlements and imposing severe financial hardship on affected pensioners who depend on these funds for their livelihood,” he said.

The lawmaker also questioned the alleged exclusion of some retirees from general pension increases over additional or extra-statutory demands, which he said might be inconsistent with existing laws, binding agreements and approved pension policies.

Jallo further revealed that the CBN’s pensioner population had dropped from 5,104 in 2011 to about 3,000, indicating a decline of more than 2,100 retirees.

According to him, the figures represent an average reduction of 140 pensioners annually, with the rate potentially rising as the surviving retirees grow older.

He cautioned that continued delays in settling pension obligations could push elderly and vulnerable former employees into poverty, expose them to health challenges and result in preventable deaths.

Jallo maintained that Nigerians who had devoted years of service to the country deserved transparency, equitable treatment and timely payment of their legitimate retirement benefits.

“The House acknowledges the need for legislative oversight to establish the facts, determine the extent of any breaches or administrative failures, and ensure that all eligible pensioners receive their lawful entitlements,” he said.

Lawmakers overwhelmingly endorsed the motion through a voice vote during plenary presided over by Speaker Tajudeen Abbas.

Following the resolution, the House urged the CBN and relevant authorities to ascertain all outstanding pension arrears owed to affected retirees and ensure their payment within a reasonable and clearly stipulated timeframe.

It also called for eligible pensioners to benefit from applicable general pension increases in line with existing laws.

The lawmakers subsequently directed Cardoso and other relevant officials, alongside pension administrators, regulators and representatives of the affected retirees, to appear before the House to explain the issues and present supporting documents.

The House also mandated its Committee on Pension to investigate allegations that the CBN had failed to comply with contractual agreements guiding the administration and payment of retirement benefits to its former employees.

The committee is expected to examine the terms of the agreements, the circumstances surrounding the non-implementation of the harmonisation policy, the reasons for the delay, the outstanding arrears and their impact on pensioners.

It will also investigate claims that some eligible retirees were denied general pension increases because of extra-statutory demands and establish whether the practice violates existing laws, contractual commitments or approved pension policies.

As part of the probe, the committee is to scrutinise relevant records, including pension agreements, policy circulars, payment records and actuarial reports, to identify those responsible for any established breaches or administrative shortcomings.

It is also expected to propose remedial measures, including extending applicable general pension increases to all qualified retirees without discrimination, in accordance with relevant laws and approved policies.