Govt's pensions liability hits N1 trillion
From Eno-Abasi Sunday, Calabar
THE Federal Government's total pensions liability to workers in the public sector now stands at about N1 trillion, the Head of Civil Service of the Federation, Alhaji Yayale Ahmed said yesterday in Calabar, Cross River State.
He spoke while declaring open a three-day "Enlightenment / sensitisation workshop on contributory pensions scheme", for stakeholders in the South-East and South South.
Ahmed, said: "at the moment, the pensions liability of the public sector is about N1 trillion and it is on the increase by the day. It is also envisaged that in a few years to come, pension payments might exceed the salaries of active workers".
The Head of Service, who noted that more than three quarters of the world's pensions schemes are contributory and are working successfully, appealed to Nigerian workers to bear in good faith, the attendant pains and gnashing of teeth, promising light at the end of the tunnel.
Represented by Alhaji Shehu Suleman, Permanent Secretary, Establishment and Pensions in the Office of the Head of Service, Yayale said: "the Federal Government recognises the pains associated with pensions and other on-going reform programmes, but the entire reform agenda is aimed at sustaining democracy and entrenching the principles and practice of good governance in the polity.
"The overall aim is to translate government's actions into concrete deliverables to transform the quality of life of our people. Therefore, we have to make sacrifices and bear the pains now for the future generations of Nigeria to enjoy".
Yayale, who stated that the workshop was to prepare grounds for the smooth implementation of the contributory pensions scheme in the country, explained that it would replace the old pay as-you-go scheme, which was wholly funded by the government.
Against concerns expressed by workers on the fate of gratuities, which the old scheme provided for, he said "the contributory scheme allows you to exercise your freedom to determine along with your pension fund administrator what you can take away as a lump sum, which may even be greater than gratuity".
While commending states like Katsina, Jigawa, Lagos and Bauchi which have been setting aside funds in preparation for the take off of the scheme, he sought the understanding and cooperation of stakeholder towards attaining the set objectives.
He expressed joy that as the sensitisation train moves round the country, several other states have indicated their readiness to come on board.
In her welcome address, the Head of Civil Service of Cross River State, Lady Margaret Okang Otu Okeke said the continued search by government for a way out of the pathetic plight of pensioners in the past, present and future led to the discovery of the contributory pensions scheme.
She said: "it is on record that when the idea of contributory pensions scheme was mooted, labour felt uncomfortable with it and cried foul. Initially out of ignorance, many civil servants kicked against it, mainly because of feared adverse effects of losing part of their wages to the new scheme.
"But now that the Pensions Act is a reality, what needs to be done is to adequately educate and enlighten Nigerians on the advantages and benefits of the new scheme".
She expressed hope that the workshop, which is being co-sponsored by the World Bank, would give participants and stakeholders a unique opportunity to raise issues of concern and receive clarifications.`
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