By Tracy Moses
The House of Representatives has ordered an investigation into the pension administration of the Central Bank of Nigeria (CBN), summoning its Governor, Olayemi Cardoso, to explain alleged breaches of pension agreements, unpaid entitlements and the exclusion of some retirees from general pension increases.
The resolution 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, representing Igabi Federal Constituency of Kaduna State, who drew the attention of the House to alleged irregularities in the implementation of pension arrangements governing the retirement benefits of former CBN employees.
Presenting the motion, Jallo expressed concern that the alleged failure to implement the approved harmonisation policy, as well as its faulty execution, might have created disparities in pension payments and left affected retirees with substantial outstanding arrears.
“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 pensioners from general pension increases on the grounds of additional or extra-statutory demands, which he argued might not be supported by applicable laws, binding agreements or approved pension policies.
He further raised concerns over the declining population of CBN pensioners, disclosing that their number had dropped from 5,104 in 2011 to approximately 3,000.
According to him, the reduction represents a loss of more than 2,100 pensioners, translating to an average decline of about 140 annually.
Jallo said the situation was particularly troubling given the advancing age of surviving retirees, many of whom depend on their pensions as their primary source of livelihood.
He warned that continued delays in the payment of retirement benefits could expose elderly pensioners to poverty, deteriorating health conditions and avoidable loss of life.
The lawmaker maintained that the welfare of retirees should not be compromised after years of service, insisting that institutions must honour their contractual and statutory obligations to former employees.
“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.
The motion received overwhelming support during a voice vote 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.
It also called for applicable general pension increases to be extended to eligible retirees in accordance with relevant laws, to address alleged disparities in the treatment of former employees.
As part of its resolutions, the House summoned Cardoso and other relevant CBN officials, alongside pension administrators, regulators and representatives of affected pensioners, to appear before it and explain the circumstances surrounding the allegations.
The officials are also expected to submit relevant documents to enable lawmakers establish the facts and determine whether the bank has fulfilled its obligations under the applicable pension agreements.
The House subsequently mandated its Committee on Pension to investigate alleged non-compliance by the CBN with contractual agreements governing the administration and payment of retirement benefits to its former employees.
The committee is to examine the terms of the agreements, identify the obligations of the parties and determine whether the bank has fulfilled its commitments.
It is also expected to investigate the approval and non-implementation of the harmonisation policy, establish the reasons for the delay, determine the total outstanding arrears and assess the impact of the alleged failures on affected pensioners.
Another area of focus is the reported exclusion of eligible retirees from general pension increases on the basis of extra-statutory demands. The committee is expected to determine whether such exclusions are consistent with existing laws, contractual obligations and approved pension policies.
To facilitate the investigation, the committee will review relevant contractual agreements, policy circulars, payment records and actuarial reports, among other documents, to establish responsibility for any identified administrative failures or breaches.
It will also recommend appropriate corrective measures, including the extension of applicable general pension increases to all eligible pensioners without discrimination and in accordance with relevant laws and approved policies.
The investigation comes amid growing concerns over the financial security of retirees and the ability of pension arrangements to guarantee a stable livelihood after years of public service.
For the affected CBN pensioners, the outcome could determine whether outstanding obligations are recognised and settled and whether the disputed pension harmonisation arrangements are implemented as approved.
The House’s intervention is expected to establish the extent of the alleged violations and provide a legislative basis for resolving the dispute between the apex bank and its retired employees.