Reps launch a CBN pension probe over alleged unpaid arrears, non-implementation of harmonisation policy and exclusion from pension increases

The House of Representatives has ordered an investigation into the Central Bank of Nigeria over alleged breaches of pension agreements with retired employees, unpaid arrears and the exclusion of eligible pensioners from general pension increases.

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The resolution followed the adoption of a motion moved on Tuesday by the member representing Igabi Federal Constituency of Kaduna State, Hussaini Jallo.

The motion was 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.”

Presenting the motion, Jallo expressed concern over alleged non-compliance with contractual agreements governing the pension entitlements and welfare of retired CBN employees.

He said the alleged failure to properly implement the harmonisation policy might have created disparities in pension benefits and led to the accumulation of unpaid arrears, leaving affected retirees in financial hardship.

“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 raised concerns over allegations that some pensioners had been excluded from general pension increases because of additional or extra-statutory demands which might not be consistent with applicable laws, binding agreements or approved pension policies.

Jallo further disclosed that the number of CBN pensioners had fallen from 5,104 in 2011 to approximately 3,000, representing a decline of more than 2,100.

He said the figures amounted to an average loss of about 140 pensioners annually, warning that the mortality rate could increase as the surviving retirees advanced in age.

The lawmaker cautioned that prolonged delays in pension payments could expose elderly and vulnerable retirees to poverty, ill health and avoidable loss of life.

He maintained that former employees who had served the country deserved fairness, transparency and prompt payment of all benefits lawfully due to them.

“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,” Jallo said.

The motion received overwhelming support during a voice vote at plenary presided over by the Speaker, Tajudeen Abbas.

Following its adoption, the House urged the CBN and other relevant authorities to verify and pay all outstanding arrears lawfully due to affected pensioners within a reasonable and clearly defined period.

Lawmakers also called for applicable general pension increases to be extended to eligible retirees in line with relevant laws.

The House further invited CBN Governor Olayemi Cardoso and other relevant officials, alongside pension administrators, regulators and representatives of affected pensioners, to appear before it, explain the issues and submit relevant documentary evidence.

It mandated its Committee on Pension to investigate alleged non-compliance by the CBN with contractual agreements governing the administration and payment of pension benefits to its retired employees.

The committee is expected to examine the terms and obligations contained in the agreements, as well as the circumstances surrounding the approval and non-implementation of the harmonisation policy.

Its investigation will also cover the reasons for the delay, the amount of outstanding arrears and the impact on affected pensioners.

The committee is expected to determine whether the exclusion of eligible retirees from general pension increases on the basis of extra-statutory demands complies with applicable laws, contractual obligations and approved pension policies.

It will review relevant documents, including contractual agreements, policy circulars, payment records and actuarial reports, to establish responsibility for any administrative failures or breaches.

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The committee is also expected to recommend corrective measures, including the non-discriminatory extension of applicable general pension increases to all eligible retirees in accordance with relevant laws and approved policies.