John Ewah & Nosakhare Agbonigiarhuoyi
The Edo State Governor, Mr. Godwin Obaseki, has been awarded as ‘The Most Pensioners-Friendly Governor in Nigeria’ by the Nigeria Union of Pensioners (NUP), on Tuesday August 22 2023, in an event which held at the Festival Hall, Edo State Government House, in Benin City.
Speaking during the award ceremony, Governor Obaseki expressed gratitude to the union for acknowledging his contributions in the pension space. He said: “There is nothing as gratifying as when people let you know, when you are still in office, that they appreciate what you are doing for them.
“This is more than any national honour; because it is an honour from those who are not the strongest in the society; from those who do not collect money from anybody to give honour; and I promise you that I will do all within my power, within the time I have left as Governor, and even when I leave office, to advocate the cause of pensioners, because without you there would be no Nigeria.”
Speaking on his determination to prioritize the welfare of pensioners, and the need for them to be catered for, Obaseki noted that no person deserves to be respected and treated with dignity if they do not treat others with that same respect and dignity; especially those who have given so much of themselves to keep the state and the system functioning for others.
Decrying the effect of the fuel subsidy removal, and the unpreparedness of the federal government to cushion the effects on its victims, the Governor expressed shock over how the federal government could have orchestrated such a policy without a clear-cut plan on how to support would-be victims of the subsidy removal policy.
“I am really shocked and scared about what we are going through today; where a government does not seem to have a plan as to respond to the consequences of the policy measures that it has taken”, Obaseki exclaimed.
Assuring the senior citizens of the state’s support amidst the nation’s economic crunch, Governor Obaseki pledged: “For us in Edo state, we will not abandon you. We do not like the word ‘palliative’ because it is deceitful. We would rather use words like support; to support those who will be victims of this policy measure. We will work with you, NUP, to see how we can support you. We must look at consequential adjustments.”
“I am not doing you are favour, it is your right. With the way they have mismanaged our national economy, we have to deal with inflation above 20 to 25 percent. It therefore means that whatever we are paying you today can barely do much for you.”
It should be noted that at the advent of the Obaseki administration, a huge backlog of debt owed pensioners was inherited. Edo State government, under the leadership of Obaseki, cleared all inherited pension arrears and backlogs, from batches 37 to 65, up to the tune of N4.3 billion. Pensioners now receive their pension entitlements on a monthly basis and promptly.
To prevent similar problems for subsequent pensioners and future administrations, Edo State government keyed into the Contributory Pensions Scheme (CPS) in 2017, 13 years after the law was passed in 2004, with the state government making a matching contribution of 10 percent monthly for every eight percent deducted from salaries of civil and public servants, as contribution.
When PenCom released the 2021 fourth quarter report in 2022, 25 states in Nigeria were shown to have enacted pension laws on the CPS, while seven states were still at the bill processing stage. The report listed Edo State as one of the four states in the federation with a full and up-to-date remittance of workers’ pension contributions, and this earned the state government commendations from civil and public servants as well as members of the public.
With the CPS, the issue of delayed gratuity for the younger employees has been solved once and for all. The state is one of the few in Nigeria that is current on pension payment. With the 33.3% increase in the state workers’ salaries since May 2022, and its attendant increase in the state’s minimum wage to N40,000, the state government harmonized pension payments.
Over N1 billion was paid as gratuity in 2022. On a monthly basis now, the state government makes available the sum of N200 million to liquidate gratuity backlogs, which were incurred since 1996, long before the Governor Godwin Obaseki administration. At least one-third of personnel cost in Edo is currently being used to service pensioners.
Today, with the CPS operational in Edo State, in the event of death of any public servant enrolled in the CPS, their family members or next-of-kin gets three times their gross annual salaries provided for by an insurance policy.
Edo State government pays a yearly premium for all state’s employees in the CPS; this the state government has been paying since 2017. In 2017, it paid the sum of N80.7 million premium for 9803 staff members enrolled in the scheme.
In 2018, the staff strength increased to 10,814, and the state government paid N215 million as premium. This payment has continued on a yearly basis; the more the staff strength and the higher the salaries, the higher the premium.
These giant strides by the Obaseki administration prompted the Edo State Head of Service, Anthony Okungbowa Esq., to term the Governor, as best Governor in Nigeria, during his remark at the event, noting that the pensioners are excited about his achievements within the pension space.
Speaking during the event, the National President, Nigeria Union of Pensioners, Comrade Godwin Ikechukwu Abumisi, who was ably represented by the Deputy National President, Comrade Aliu Mohammed, appreciated the Governor for his love, care and support for Edo State pensioners, noting that what the Governor has done would have a ripple effect across the nation, and as such, tagged the Governor as ‘Governor of Example’.
He noted that over the years, pensioners have been treated like lepers and beggars, which, according to him, is not only dehumanizing but also sends a wrong signal to those who are still in active service.
According to Abumisi, “It is my considered view that if Nigeria treats her pensioners very well with the dignity, decorum and respect they deserve, and purposefully make life after service better for them just like while in service, we will not need the services of EFCC, ICPC and other anti-graft agencies at all, because once the future is guaranteed, government money and properties in their care will be much safer”. Abumisi further thank Governor Obaseki for his exemplary pensioners-friendly style of governance.
Also speaking during the event was the Chairman of the Nigeria Union of Pensioners, Edo State Chapter, Comrade Pullen Noruwa, who stated that the decision to award the Governor was the Union’s way of showing appreciation to the Governor, who, according to him, has “changed the face of governance in Edo State in all ramification and put smiles on the faces of Pensioners all over Edo State.”
In his remarks, the State chairman highlighted some of the Governor’s achievements in the areas of pension and gratuity, to include monthly payment of pension, payment of pension arrears, payment of pension increases and payment of gratuity.
According to Noruwa, “Our monthly pension comes up on or before the 26th of every month. This was made possible by the directive of Mr. Governor. The government of Governor Obaseki met huge arrears of unpaid pension ranging from 20 months to over 48 months. The arrears owed pensioners was more than N4.3 billion.
“The government adopted the “pay small-small” method to clear all arrears owed the state pensioners, and the local government also started paying their pension arrears with the savings of N1.9 billion left by the immediate past Commissioner for Local Government, but the money got exhausted. The state government, under the leadership of Governor Obaseki advanced the sum of N1.5 billion to the Ministry of Local Government to conclude the payment.”
Speaking further on the Governor’s pension interventions, Noruwa stated: “Payment of the protracted pension scheme increases of 6% of 2003, 15% of 2007 and 33% of 2010 came up when governor Obaseki made pronouncement that all the percentage increases/harmonization would be paid, effective from May 1st 2022, during the celebration of Labour Day at the Samuel Ogbemudia Stadium. Pensioners at the stadium were very elated as these increases have been lingering on for over 22 years. All the pensioners have not had anything added to their pension since their retirement.
Noruwa also expressed delight over the commencement of gratuity payment by the Obaseki administration. “The State Governor, Mr. Godwin Obaseki graciously approved the payment of gratuity with effect from July, 2023. He also approved a monthly release of N200m to ensure the gradual liquidation of gratuities.
“I am happy to state here that payment of gratuity has started in earnest with payment of the left over from 1996 to 2011 paid in July, 2023. I am also aware that payments of those who retired in 2012 are currently being made in this month of August, 2023. The list of Pensioners to be paid their gratuities in September, 2023 has been sent to the Accountant General for action.”
