Headlines

Pension Scams: The Untold Story Of Retirees In Despair

Published

10 years ago

March 21, 2016

How PenCom, PFAs/PFCs Pocket Billions Monthly

The recent suspension of the Director General of the Pension Transitional Arrangement Directorate (PTAD), Nellie Mayshak, over an alleged fraud has, once again raised questions and concerns about the future of the country’s workforce.
A cross section of Nigerians among whom are pensioners and some personnel who are still working, have told nationalTRAIL that they were not only disappointed, but also discouraged with the news that an agency that was established to check past situation where those responsible for the management of pension funds feed fat at the expense of the pensioners.
According to a senior civil servant who is due to retire in the next few years, who plead that he should not be mentioned in print, the news of fraud in PTAD was sad, and that it was discouraging to those of them still in service, saying that it was also a sad reminder of not too long ago when several pensioners die while waiting to get their entitlements, after given all their productive years in service of the nation.
“ As a civil servant, still in service, he said such news is very distressful, and more or less a reminder that I should find ways of taken care of my future before I retire, if I do not want the fate of so many retirees to befall me.
“ Little wonder, corruption cannot end within the public service, except something is done urgently to assure us of a future in retirement, we will just be going in circles.”
PTAD was established in accordance with the provisions of Section 30 sub-section (2) (a) of the Pension Reform Act (PRA) of 2004 (amended in 2014) to specifically handle pension matters concerning those who either retired before the Pension Reform Act of 2004, or were not captured in the new scheme.
It is to specifically administer the Defined Benefit Scheme (DBS), with the view to addressing those complaints of pensioners, which has to do with; non-payment of monthly pension, short payment and gratuity, removal of name on pension payment voucher, non-payment of harmonised pension arrears, irregular payment of federal pensions and non receipt of pension after retirement, delay in payment, and all related issues.
Investigation reveals that the establishment of PTAD was to insulate the pension administration from the allege huge fraud that had engulfed Abdulrasheed Maina, now at large, when he chaired the Pension Reform Task Team (PRTT).
But apart from frauds such as this, nationalTRAIL discovered that billions from the pension funds are every month pocketed by 21 licensed Pension Fund Administrators (PFAs), four Pension Custodians(PFCs), and seven Closed Pension Fund Administrators (CPFAs), and the country’s pension regulator, National Pension Commission(PenCom).
The both the 21 PFAs, four PFCs and the seven CPFAs, are all privately owned, except for one of the PFAs, which has government a agency’s equity, and PenCom, which regulates the pension industry, yet they rake in billions every month from what is described as ‘Asset Based fee’ or Management fees.
As at December 31 of 2014, the total pension fund assets was said to have hits 4.6 trillion in naira, with an estimated growth rate put at 25 percent by the PenCom, during the past eight years.
Similarly, the monthly PenCom report, for November 2015, showed that as at that date, the total pension fund assets stood at 5.2 trillion naira.
It is from this huge amount of money that these operators as well as the regulator retain the following percentage;

RSA 1.60 0.40 0.25 2.25
CPFAs 1.00 0.40 0.15 1.55
AESs 1.00 0.40 0.15 1.55
RSA RETIREE 0.50 0.15 0.10 0.75
According to a reliable source at the PenCom, about 2% of the total Retirement Savings(RSA) Fund alone, which as at last November, was well over five billion naira(N5bn) is usually retained by both the pension administrators and pension custodians, who in turn remit 0.25% to PenCom, without correspondent services either to the pensioners, or even to the nation.
The source further told our correspondent that the percentage was even higher than what it is presently.
“ The fee was initially pegged at three percent before it was later reviewed downward, and you would wonder what they do to merit such huge amount of money.”
nationalTRAIL also learnt that for instance; Stanbic IBTC Pension Managers Limited, alone rakes in almost two billion naira(N2bn) every month from the Asset based fees on the RSA fund , an amount much more than what many states of the federation today take away from the monthly Federation Account Allocation Committee(FAAC) meeting. Since Stanbic IBTC has under her management close to 2 trillion naira in her fund under management.
In the month of January for instance, the three tiers of governments of the federation were only able to share the sum of N370,388,451,642.37, with some states, like; Cross Rivers, Ekiti, Gombe, Ogun and Zamfara only managing to take away, little above one billion naira, while Osun got far less to discharge their responsibilities to the people of their states.
A civil servant with one of the federal agencies in Abuja, observed that, “yet a single pension administrator with no direct responsibility to the people in the provision of social services, walks away with such huge amount from the sweat of pensioners every month.”
A pensioner who still earns a partly sum of fifty thousand naira(N50,000), after serving the country for 35 years in one of the most challenging para-military organisations laments the poor condition of the pensioners, as against affluent lives of the pension managers.
“ Just imaging with all my 35 years of service without a single query, my pension a month is not more than fifty thousand naira (N50,000), but I hear that those managing our pension are living from our sweat, just imagine that kind of imbalance.”

By Emmanuel IFFER, Abuja

Headlines

“Nigeria Is in a Hurry to Celebrate Victory Over Enemies of the State,” Says Tinubu as He Decorates New Service Chiefs

Published

2 days ago

October 30, 2025

Our Reporter

By: Fabian Apechihin

President Bola Ahmed Tinubu has urged the newly appointed service chiefs to discharge their duties with utmost dedication and renewed commitment, declaring that “Nigeria is in a hurry to celebrate victory over enemies of the state.”

The President made this statement on Thursday during the decoration ceremony of the new service chiefs with their ranks at the Aso Rock Presidential Villa in Abuja.

Those decorated were General Olufemi Oluyede as Chief of Defence Staff, Lieutenant-General Wahidi Shaibu as Chief of Army Staff, Air Marshal Kennedy Aneke as Chief of Air Staff, and Vice Admiral Idi Abbas as Chief of Naval Staff.

The ceremony was attended by Vice President Kashim Shettima and the spouses of the newly promoted officers, who joined the President in performing the decorations.

In his address, Tinubu underscored the central role of security in fostering national development and reaffirmed his administration’s commitment to protecting the lives and property of all Nigerians.

“Security is an essential element without which everything else becomes meaningless,” the President stated. “There can be no sustainable development if this fundamental need is not met. Our people and our nation must remain secure to enjoy the dividends of governance.”

The elevation and decoration of the new military chiefs followed their confirmation by the National Assembly on Wednesday, after a closed-door screening session with lawmakers.

It will be recalled that, in a recent overhaul of the nation’s military hierarchy, President Tinubu appointed:

Lieutenant General Olufemi Olatubosun Oluyede as Chief of Defence Staff,
Major General Waidi Shaibu as Chief of Army Staff,
Rear Admiral Idi Abbas as Chief of Naval Staff,
Air Vice Marshal Sunday Aneke as Chief of Air Staff, and
Major General Emmanuel Undiandeye retained as Chief of Defence Intelligence.

The new appointments mark a strategic restructuring of Nigeria’s security leadership aimed at strengthening the fight against insurgency, banditry, and other threats to national stability.

Headlines

FG Dismisses Coup Rumour, Reaffirms Confidence in Nigerian Military

Published

2 weeks ago

October 20, 2025

Our Reporter

By: Fabian Apechihin

The Federal Government has dismissed widespread rumours of an alleged military coup plot against President Bola Tinubu, declaring its full confidence in the loyalty and professionalism of the Nigerian Armed Forces.

Minister of Information and National Orientation, Mohammed Idris, made this known in an interview with The Punch on Sunday, insisting that the administration has “no reason whatsoever” to doubt the assurances given by the Defence Headquarters, which had earlier denied reports linking the detention of 16 military officers to a coup attempt.

“The Federal Government has no reason to doubt the military on what it has said,” Idris stated.
“We believe the Armed Forces of Nigeria remain committed to protecting the nation’s territorial integrity and strengthening the fight against insecurity. The government commends their sacrifice and will continue to support them in safeguarding the country.”

The minister’s remarks came a day after the Director of Defence Information, Brigadier General Tukur Gusau, firmly debunked a report by Sahara Reporters alleging that the detention of 16 officers was connected to a failed coup plot and the cancellation of the 65th Independence Day parade.

Gusau described the publication as “false, mischievous, and deliberately aimed at creating unnecessary tension and public distrust.”

He clarified that the cancellation of the October 1 Independence Day parade was a purely administrative decision — taken to allow President Tinubu attend a key bilateral meeting abroad and to enable military units sustain ongoing counterinsurgency operations nationwide.

On the issue of the detained officers, Gusau said their case was “an internal disciplinary process” and not related to any political matter.

“The investigation involving the 16 officers is routine, aimed at upholding discipline and professionalism within the ranks,” he explained. “An investigative panel has been constituted, and its findings will be made public in due course.”

Reaffirming the military’s constitutional role and unwavering commitment to civilian rule, Gusau stressed emphatically:

“Democracy is forever.”

Headlines

FG Moves to Reform Civil Service Disciplinary System for Greater Efficiency

Published

3 weeks ago

October 14, 2025

Our Reporter

By: Fabian Apechihin

The Federal Government is set to overhaul the disciplinary control system in the civil service to promote efficiency, accountability, and timely resolution of cases.

The Chairman of the Federal Civil Service Commission (FCSC), Prof. Tunji Olaopa, made this known during a one-day joint retreat between the FCSC and the Office of the Head of the Civil Service of the Federation (OHCSF).

In a statement issued on Tuesday by the Commission’s Head of Press and Public Relations, Taiwo Hassan, Olaopa emphasized that the review would drive culture change, value reorientation, and improve the overall disciplinary framework in the public sector.

He likened the relationship between the FCSC and OHCSF to that of “Siamese twins,” noting that both bodies share crucial responsibilities in policy implementation, regulatory enforcement, and leadership across the service.

Olaopa also underscored the need for stronger collaboration and communication between the two institutions to avoid misunderstandings, build trust, and enhance service delivery.

The FCSC chairman further advocated for an integrated system that links merit-based recruitment, competency-driven human resource management, and performance evaluation with the civil service wage structure, saying such reforms would help reposition government as an “employer of choice.”

Speaking on behalf of the Head of the Civil Service of the Federation, Dr. Folasade Yemi-Esan, Esther Walson-Jack praised Olaopa’s reform initiatives, describing the retreat as a renewed commitment to strengthening collaboration and efficiency within the civil service.

The renewed push for reform follows rising concerns about bureaucratic bottlenecks, delayed disciplinary actions, and weak accountability mechanisms in Nigeria’s public administration.