- IGP welcomes proposed law, seeks assent
The passage of the Bill for the Establishment of a Police Pension Board could balloon Federal Government’s pension liabilities, industry experts have warned.
The bill excludes the Police from the Contributory Pension Scheme (CPS) and returns the force to the old Defined Benefits Scheme (DBS).
Actuarial evaluations, according to industry stakeholders, indicate that it would cost the Federal Government an additional N2 trillion in pension liabilities for the 300,000 police personnel.
Commenting on the possible implication for the already cash-strapped government, a financial analyst, David Ekpe, noted that under the contributory scheme, employees and employers contribute towards pension.
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But, under the DBS, the government takes full responsibility, which had led to irregular pension payments due to budgetary constraints.
The upper chamber announced on its Twitter handle on Tuesday that it had passed the Bill despite opposition from industry stakeholders at the public hearing.
The National Pension Commission (PenCom), which regulates the industry, the Pension Fund Operators Association of Nigeria and the Nigeria Labour Congress (NLC) all opposed the Bill.
Former Secretary to the Government of the Federation (SGF), Boss Mustapha, had written to the Inspector General of Police in January 2022 to reiterate that a circular, with reference number 59149/S.1/C.1/11/266 dated July 20, 2021, stating that the police must be under the CPS, remained in force.
The ex-SGF also referred to the White Paper on the report of the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions and Agencies, which forbids any government body, apart from the military and the intelligence services, from exiting the CPS.
In 2004, the Olusegun Obasanjo Administration carried out a comprehensive pension reform to address the plight of pensioners who were always owed years in arrears.
According to Ekpe, Nigeria moved from pension liabilities of N2.4 trillion to accumulated pension assets of N15.45 trillion as of February 2023.
Under the Bill passed by the Senate, the Federal Government will now be fully responsible for police pensions.
But, the IGP, Usman Alkali Baba, commended the National Assembly for the passage of the Police Pension Board Bill and the Nigeria Police Force College, Training School and Institution (Establishment) Bill.
He believes the two Bills will positively redefine policing, standardise training capacity, enhance productivity and address the recurring pension-related hardship.
To him, the removal of the police from the CPS and the establishment of the Pension Board is a welcome development and will help address the plight of police retirees.
While hailing the National Assembly for passing the bills, which he described as critical, the police boss commended the efforts of well-meaning Nigerians for their support.
He hopes that the Bills will be assented to by the President for their full implementation.
According to a statement by the Force Public Relations Officer, Olumuyiwa Adejobi, a Chief Superintendent of Police (CSP, the IGP commended the steadfastness and patience of the retirees on the age-long battle of the pension palaver.
He assured that all hands are on deck to make the bills a reality.