‘Lagos State Govt Fails To Honour ₦2bn Commitment To Defray Pension Accrued Rights Of Retirees’
Governor of Lagos State, Mr. Babajide Sanwo-Olu
The Lagos State Government has consistently failed to honour the N2 billion monthly commitment to clear the accrued rights of its retirees, the National Pension Commission (PenCom) has said.
According to PenCom, as at the end of the 4th Quarter of 2022, there was no record of the State fulfilling its monthly commitment of remitting ₦2 billion for the months of October, November and December 2022.
The Commission said “only a total sum of N7.83 billion was so far redeemed as against the expected sum of N26 billion during the period. This therefore leaves a cumulative shortfall of N18.17 billion that was yet to be redeemed as at the end of December 2022.”
On the routine inspection of the Lagos State Pension Arrangements, the Commission said the Head, States Operations Department led an inspection team to conduct an onsite routine inspection of the Lagos State Pension Arrangements from 12 to 15 December 2022.
The inspection, the Commission stated, “was aimed at assessing the status of implementation of the Contributory Pension Scheme (CPS) by the Lagos State Government and its agencies, as well as the administration of the Defined Benefits Scheme (DBS) in the State. The inspection report is being finalized for Management’s consideration and approval.”
The Director General of PenCom, Mrs Aisha Dahir-Umar in her remarks, announced that the Pension Fund Assets under Management (AuM) has increased by N568.33 billion from ₦14.42 trillion as 30 September 2022 to N14.99 trillion as at 31 December 2022.
She said “This laudable performance, in the growth of the AuM, points to the fact that the pension industry will continue to deliver value and benefit to its stakeholders and the nation’s economy.
During the reporting period, she said “the Commission stepped up its efforts to ensure sustainable investment by pension funds in alternative asset classes and structured infrastructure projects that meet the strict requirements of the Pension Fund Investments Regulation.
“We continued our efforts to ensure further diversification of investments in pension fund portfolio assets. While rising inflation continues to challenge the Nigerian economy, it should be noted that efforts are being made to ensure average annual pension fund returns for RSA and legacy funds exceed headline inflation.”
While commending staff of the Commission for their commitment, she said “This significant achievement in the Nigerian pension industry would not have been possible without the right people, strategy, culture and governance structure to support delivering consistent and sustainable value to all stakeholders.
She reiterated the Commission’s unwavering commitment to meeting the needs of its stakeholders, providing best practice in pension regulation and supervision in Nigeria.
