Pension Reform: A Call to Action for Nigeria’s Workers

by Damilola Omosebi

As Nigerians, we are all hurtling towards old age, and it is imperative that we address the pension system that is supposed to support us in our twilight years.

The current Contributory Pension Scheme (CPS) has been criticized for being exploitative, with pension administrators profiting from retirees’ savings while the latter struggles to make ends meet.

The CPS has been designed to safeguard retirees, but it has morphed into a machinery of exploitation. Retirees are forced to surrender control of their life savings to pension administrators, only to receive meager payments that mock their years of labor.

For instance, a retiree who saved ₦20 million over a lifetime is permitted to access just 50% of his savings (₦10 million) upon retirement, while the remaining ₦10 million is doled out in monthly payments over 15 years.

The current pension framework is a goldmine for administrators and a death sentence for retirees. Pension administrators invest retirees’ funds in high-yield instruments, earning returns as high as 15% annually, while retirees are left with scraps. This is not just unfair; it is a moral crime.

Behind these numbers are human beings who once built roads, taught children, healed the sick, and served the nation. Many retirees cannot afford medications, rent, or even food, while others are forced to beg or depend on relatives. This is not just flawed policy; it is a systematic denial of humanity.

We demand a pension system that honors, not exploits, those who built our nation. We urge lawmakers to prioritize the Pension Reform Act and pass legislation that empowers retirees, not administrators. We call for:

1. Full access to pension savings: Retirees should have the right to withdraw 100% of their savings.
2. Investment autonomy: Let retirees choose how to invest their funds.
3. Transparency and accountability: Pension administrators must disclose how they invest retirees’ funds and share profits equitably.

A society is judged by how it treats its elderly. Today, Nigeria is failing that test. But together, we can rewrite this story. Let us unite to demand a pension system that honors, not exploits, those who built our nation. The time to act is NOW. Tomorrow is too late.