Why Tinubu's gov't need to return to former pension scheme, NLC president explains

• Comrade Joe Ajaero, President of the NLC, has called for a return to Nigeria's previous pension scheme
• Ajaero stressed that retirement should be a period of security and dignity for every worker, not a source of anxiety about financial stability
• Ajaero highlighted significant pension arrears amounting to nearly N260 billion owed by the Federal Government, along with additional arrears from federal parastatals

President of the Nigerian Labour Congress (NLC), Comrade Joe Ajaero, has advocated a return to the previous pension scheme.

Ajaero expressed dissatisfaction with the current system, stating that it fails to fulfill its fundamental purpose.

NLC president, Joe Ajaero advises President Tinubu on reverting back to old pension scheme Photo credit: Kola Sulaimon/@JoeAjaero94024
Source: UGC

Speaking at the 2024 National Pre-Retirement Summit themed "Challenges, Strategies, Prospects, and Opportunities at Retirement in Nigeria," organized by XEM, a capacity development hub in Africa, Ajaero emphasized that retirement should not be feared but embraced by every worker.

Ajaero voiced concerns over the lack of retirement security that many workers face, prompting apprehension about their post-retirement futures, The Nation reported.

He said the current pension scheme in Nigeria does not effectively fulfill its core objective of supporting workers in their later years.

According to him, the Naira, used for storing pensions, has shown instability and continuous depreciation over time. A stable platform is crucial to ensure that contributions retain their value and adequately support retirees.

Ajaero: FG indebted with over N200bn pension arrears

He emphasized that the Federal Government is reportedly indebted with almost N260 billion in pension arrears, with federal parastatals owing an extra N40 billion.

Additionally, he claimed some states have arrears that extend up to eight years.

According to him, in the private sector, reports suggest that many companies have arrears of up to three years, deducting contributions from employees' salaries but failing to remit them to the respective Pension Fund Administrators (PFAs).

He mentioned that retiring workers often grapple with numerous uncertainties, including concerns about timely pension payments, survival strategies, the actual value of their pensions, and whether it will suffice to meet basic needs and more.

New minimum wage: Tinubu sends invitation to Labour

Earlier, President Bola Tinubu has moved to meet with the organised labour on Thursday, July 11, in Abuja to discuss a new minimum wage for Nigerian workers.

Legit.ng reported that the meeting will be held at the Aso Villa, and the president is expected to make a decision on the proposed minimum wage.

Source: Legit.ng