Professor Mathew Olasehinde Fashagba of the Faculty of Management Science , Federal University Lokoja (FUL) has identified corruption as an active threat that hindered the success of the contributory pension scheme in Nigeria.
Fashagba stated this while delivering the 25th Inaugural Lecture series of the University titled
“Retirement Benefits Adequacy: The Need to Reform Nigeria’s Pension Reform” held at College of Health Science, Adankolo campus of the institution in Lokoja, Kogi State on Wednesday.
According to him, the nation’s contributory pension scheme introduced in 2004 by former president Olusegun Obansanjo has not successfully provided adequate retirement benefits to retirees in the country, lamenting that the pension Act, in its current form, lacks the capacity to fulfil its obligations due to massive corruption and other factors hindering its efficiency.
“When an Act is passed but fails to achieve its objectives, it becomes necessary to review it urgently. In the case of Nigeria’s Contributory Pension Scheme, the Act has not successfully provided adequate retirement benefits which is undeniable.
“Corruption must be completely eliminated. You would recall that one of the major problems that led to the replacement of the old scheme was corruption. Corruption remains active threat to the success of the contributory pension scheme.
“Pension system in Nigeria should be de-politize to serve the retirees better. Computation of Pension, annuity, life insurance among others requires rigorous training not for every Harrison and Dickson on the street but for those with professional training for it.
“Hence political consideration should be down-played in constituting pension management team. Undermining professional training and skills for political consideration is akin to a systematic designing of inevitable failure in the pension system”.
While advocating for urgent pension reform to enhance retirement benefits adequacy in Nigeria, Professor Fashagba, advised that early access to pension benefits must be reviewed from the 50 years in the current Act to not less than 60 years.
“Netherland just reviewed their retirement age from 65 to 67 to
sustain their pension system leadership in the world,” he said .
He urged government to provide funds to complement pension benefits for retirees with little amount into the retirement savings account to ensure that no retiree suffers old age poverty.
“Pension benefit should be seen and accorded the same importance with employee’s wages and be given timely remittance. Government should be able to demonstrate willingness to bring to justice any defaulter of timely remittance” he stated.
In his speech, the Vice Chancellor of the university, Professor Olayemi Akinwumi said that the theme of the inaugural lecture “Retirement Benefits Adequacy: The Need to Reform Nigeria’s Pension Reform” is both timely and pertinent, especially as citizens navigate the complexities of pension administration in Nigeria.
The Vice Chancellor noted that pensions are a crucial aspect of financial security for retirees in ensuring that they can maintain a decent standard of living after years of service, lamenting the adequacy of retirement benefits which he stated has remains a subject of concern, with many pensioners struggling to access their entitlements due to systemic inefficiencies and policy gaps.