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Tag: PenCom

  • PenCom seeks closer ties with RSAs, retirees with construction of six offices

    PenCom seeks closer ties with RSAs, retirees with construction of six offices

    IN its efforts to be closer to Retirement Saving Account (RSA) holders and retirees, the National Pension Commission (PenCom) has planned to construct six office buildings , its Director-General, Mrs Chinelo Anohu-Amazu, has said.

    She disclosed this in a memorandum presented to the National Assembly.

    According to her, the commission hopes to construct four zonal office buildings, acquire land for offices in Northcentral, Northwest and Southwest Zones and construct office buildings in Northcentral and Southwest.

    According to her, the construction of office building in four existing zonal offices, will gulp  N150,000,000, while land acquisition for offices in Northcentral, Northwest and Southwest Zones,   will cost N150,000,000 and office construction in two states both in the northcentral and southwest will cost N450,000,000.

    She said: “PenCom wishes to respectfully inform the Senate Committee on Establishment and Public Service that it was compelled, in its budgetary submission to the Ministry of Budget and National Planning, to stay within the limits stipulated in the template forwarded to it by the Ministry.

    “However, due to the need for the Commission to expand its activities, we would like to request for the appropriation of the sum of N5,000,000,000.00 as Capital Subvention instead of the N750,000,000.00 allocated. The request is broken down into the following project components: Purchase/Acquisition of Land; Remodeling/Construction of Office Building; Remodeling of Head Office; Construction of Zonal Offices and Architectural and Other Development Costs,” she said.

  • PenCom: regulator or operator?

    PenCom: regulator or operator?

    •It must be compelled to render account of its interim committee’s activities in FGPL

    IT is astonishing that snce the National Pension Commission (PenCom) took over First Guaranty Pensions Ltd (FGPL) on August 12, 2011, it has not held any Annual General Meeting (AGM) contrary to the provisions of the Companies and Allied Matters Act (CAMA). AGMs are supposed to be held at least once in a year. What this implies is that for this period, there has not been any audited account for the firm. Indeed, the company’s original owners are alleging that its fortunes have dwindled and that the company is being badly run.
    If this is true, it is sad indeed.
    PenCom took over FGPL sequel to a target examination barely a month after the regulator had affirmed it as the most performing pension fund administrator (PFA), thus making the takeover curious.
    Expectedly, the matter has been the subject of litigation in several courts. Interestingly, PenCom and others that have taken FGPL’s owners to court have lost on all fronts so far. FGPL took the commission to the Federal High Court, Abuja, in 2011, alleging a breach of procedures by it. It said what PenCom ought to have done was to send its observations on the target examination to the company’s directors who would then submit same to the shareholders to vote on, and the result would determine the company’s fate; not a takeover by PenCom.
    The court gave an ex parte order stopping all actions based on the target report, pending the determination of the substantive suit. This was communicated to PenCom. But, curiously, the regulator, which received the court’s order on August 12, 2011, dissolved the FGPL board and appointed an interim committee in its stead on August 15, 2011. However, on June 12, 2012, the court found merit in FGPL’s argument and quashed the target report in its entirety. Indeed, Justice D.U Okorowo upbraided PenCom for contempt of the order of the court and ordered that all parties should revert to the status quo ante.
    The judgment was followed by all manner of subterfuges.
    Instructively, the matter was of such concern that the Attorney-General of the Federation at the time, Mohammed Adoke, wrote letters to PenCom to respect the court’s judgment or show evidence that it had secured a stay of execution. Even the incumbent AGF and Minister of Justice, Abubakar Malami, had intervened to no avail.
    There are other reasons why the real motive for FGPL’s takeover becomes the more questionable. Whereas the firm was on the verge of securing new accounts, including those of the Lagos State government, Central Bank of Nigeria (CBN), among other juicy accounts, when PenCom took it over, PenCom has, regrettably, not added a single account to what it met on ground. Indeed, it is now feared that the company might have lost its market share in the course of this intervention. It has not been able to pay any dividend since then, either.
    There is an urgent need to compel PenCom to hold an AGM. The true position of the financial status of the company must be ascertained at least in the interest of the shareholders, and, more importantly, the contributors. It is not enough for the regulator to say that FGPL is doing well, when its books are not available for scrutiny. Neither can the regulator say it cannot conduct AGM because of the cases in court, having cherry-picked which aspects of a judgment to respect and which to disobey. The commission should know what to do, especially in the absence of a stay of execution of the judgment of Justice Okorowo nullifying its target report.
    The new pension scheme came into being to enable retirees have a blissful retirement. What is playing out with FGPL may make this lofty dream a mirage. While it is doubtful if the regulator has any right to take over FGPL in the first place, it becomes the more puzzling whether this can be in perpetuity as it is fast turning out in the instant case.
    We cannot deny PenCom the right of appeal that it is exercising in this matter, having lost serially in various courts, either by itself or through some other parties that had gone to court over the same or related matters. But questions can be asked over its handling of the company’s affairs in the last five years, especially as this can make the difference between life and death for millions of Nigerians who had chosen FGPL as their pension fund administrator.

  • Pensioners besiege Finance ministry over unpaid N200bn pension       

    The federal ministry of finance was besieged Thursday by angry pensioners over their unpaid N200 billion pension.

    The Retirees lamented that they have not been paid their pension in the last 15 months.

    The angry pensioners coming together under the auspices of the League of Federal Service Contributory Pension Retirees and led by the Coordinator, Mr Chike Ogbechie said the association had made a submission to the National Assembly that if N200 billion for accrued pension is not approved in the 2017 budget the backlog would remain.

    Members of the league cried that they have made several attempts to see the minister of finance, Mrs Kemi Adeosun over this matter. “The next time we come here we are going to occupy this ministry. We are going to bring our mattresses we will stay here” they threatened.

    They also accused the Minister for Budget and National Planning of not having regard for pension matters. According to them, “that one, what he does is that when PENCOM submits the budget for accrued pension, he slashes it arbitrarily.”

    The pensioners lamented further that “they (Budget and National Planning Ministry) slash our budget thus creating backlog. Then when the budget is approved, the Minister of Finance does not release funds. Last year she released only N18 billion for this purpose instead of N51 billion that was approved and even the N51 billion was inadequate, but she released only N18 billion.”

     

     

  • Transfer window, micro pension to drive industry this year

    Transfer window, micro pension to drive industry this year

    The initiatives of the National Pension Commission (PenCom) to bring the informal sector and micro pension into the Contributory Pension Scheme (CPS) and open a transfer window by the end of the year will make substantial differences in the industry, FUG Pension Managing Director, Usman Suleiman, has said.

    Suleiman, who made this known to reporters in Lagos, said operators were working with PenCom to achieve these.

    The transfer window, when established, would allow Retirement Savings Account (RSA) holders to transfer from their current Pension Fund Administrator (PFA) to another of his or her choice.

    This is in line with Section 13 of the Pension Reform Act, PRA, 2014.

    Suleiman said there was a very high possibility that the Transfer Window would be opened towards the end of this year.

    Basically, he said, the issue of structuring the transfer window was such that you do not have problems down the line.

    On bringing the informal sector and micro pension into the CPS, he said the industry is looking at moving from six million account holders captured in the CPS to a minimum of 20 million over the next three years.

    He said: “We expect the commencement of the micro pension to frog jump participation in the CPS. It is very peculiar. The guidelines we have at present are all looking at a formal structure but the micro pension requires an informal structure. We are looking at moving from six million account holders captured in the CPS to a minimum of 20 million over the next three years and the key is the micro pension and the integration of informal sector.

    “On Transfer Window, for instance, we want to be sure that technology is right, the process is right and all the parties involved and particularly the central clearing system is correct and right and every party involved on the same page. This is not an easy thing to do because it involves a lot of resources. But I can tell you we are aware that the regulators have been working very hard on it. They have made a lot of headways in recent times to get the technology and process in place and I strongly believe that in not too distant future we will see the transfer window structure in place.”

  • Fed Govt owes 105, 920 retirees N705b, says PenCom

    Fed Govt owes 105, 920 retirees N705b, says PenCom

    Fed Govt owes 105, 920 retirees N705b, says PenCom

    The Federal Government owes 105,920 retirees about N705 billion, the National Pension Commission (PenCom), has said.

    It urged the National Assembly to intervene by appropriating the needed fund to enable the government to meet up its obligations to its former employees.

    In a memorandum submitted by the Director-General, National Pension Commission (PenCom), Ms Chinelo Anohu-Amazu, to the National Assembly Joint Committee on Appropriations, the organisation said the Federal Government owes its 2016 retirees N73.1 billion while  N113 billion is required for the 2017 retirees.

    “It also owes pension increase of 79,961 pensioners who retired under the CPS from 2004 to 2014 the sum of N79.2 billion, the sum of N10 billion being the Federal Government’s statutory contribution to the funding of the Pension Protection Fund and the sum of N440 billion being the shortfall in the retirement benefits of 24 retired Heads of Civil Service of the Federation, Federal Permanent Secretaries and 16 Federal Permanent Secretaries.”

    According to the DG, the most critical challenge of the implementation of the CPS in Nigeria today is the non-payment of retirement benefits of Federal Government employees who retired in 2016 due to insufficient appropriation and late release of appropriated funds for payment of accrued pension rights.

    She made a case on the need for adequate appropriation of funds for the payment of the Federal Government’s pension liability under the Scheme.

    She also sought appropriation for overhead and capital subvention to facilitate the Commission’s operations in 2017.

    She urged the Joint Committee on Appropriation to consider, approve and release of the sum of N73 billion to pay January to December 2016 retirees of the Federal Government;

    She also sought the appropriation of N113 billion for 2017 retirees of the Federal Government, as determined by PenCom pursuant to Section 39(3) of the Pension Reform Act (PRA).

    Giving a summary of Federal Government pension liability for the year 2017, she stated that N72 billion is needed for 16,267 civil servants are expected to mandatorily retire in 2017 inclusive of 1,569 Civil Servants who retired before 2017 but had not been provided for previously.

    She also said that N19.1 billion is needed for 9,652 estimated death claims and N21.1 billion for an estimate of employees yet to be enrolled by the Commission

    She said: “Also, our prayers to the National Assembly is to ensure adequate appropriation under the Federal Government’s Recurrent Expenditure in order to facilitate the implementation of the new 18 percent pension contributions rate; to ensure the appropriation of the sum of N79.2 billion for payment of pension increase for the 79,961 pensioners who retired under the CPS from 2004 to 2014 and ensure the appropriation of the sum of N10 billion being the Federal Government’s statutory contribution to the funding of the Pension Protection Fund.

    “We also pray that the National Assembly should ensure the appropriation of the sum of N440 billion being the shortfall in the retirement benefits of 24 retired Heads of Civil Service of the Federation and Federal Permanent Secretaries that had earlier enrolled with the Commission and 16 Federal Permanent Secretaries scheduled to retire in 2017; and ensure the appropriation of the total sum of N5 billion as Overhead and Capital subvention to facilitate the Commission’s activities in 2017.”

  • Court adjourns hearing in suit against PENCOM

    The National Industrial Court has adjourned till March 21, hearing in a case seeking payment of N11 million pension to a retired officer of the Nigeria Customs Service (NCS).

    Mr. Alalibo Davies, a retired staff of the NCS, had challenged the National Pension Commission (PENCOM), alleging discrepancies in his pension, the News Agency of Nigeria (NAN) reports.

    Davies joined the Premium Pension Limited and the NCS as co-respondents.

    The claimant is asking the court to prevail on the pension board to pay him N11 million as pension sum due to him.

    When the case came up on Thursday, the judge, Justice Edith Agabakoba, adjourned hearing to enable the second respondent, Premium Pension Limited, file its defence.

    Claimant’s counsel, Mr. E.Ayinmoje, had informed the court of second respondent’s motion for extension of time.

    The court, thereafter, adjourned the case till March 21 for hearing of the suit.

    The first respondent was represented by Mr. C.Odega, while second respondent was not represented in court by counsel.

     

  • Annuity feud: PenCom, NAICOM must return to drawing board

    Annuity feud: PenCom, NAICOM must return to drawing board

    Director-General, Lagos State Pension Commission (LASPEC), Mrs Folashade Onanuga was one of the experts who started the implementation of Contributory Pension Scheme (CPS) in the state. In this interview with Omobola Tolu-Kusimo, she speaks on the feud between pension and insurance regulators over life annuity payment and why state governments should embrace the CPS to clear their pension liabilities, among others.

    Since the implementation of the Contributory Pension Scheme (CPS) started in Lagos, how has it fared?
    The Scheme was enacted in Lagos State in 2007, but it did not start operations until February 2010. According to the Act, we must have the pension commission that would oversee pension matters in the whole of Lagos State. Consequently, the state pension bill that was signed into law on March 19 stipulates that the CPS must be coordinated by the LASPEC. So, the commission came into being by the virtue of the CPS of the Pension Reform Act (PRA) 2004, now replaced with PRA 2014. Even the old scheme, which is the pay as you go, must be supervised by the commission. So, in Lagos State, we have two sets of retirees and we have been able to separate them.
    Some are under the old pension system, while others are under the CPS. Before we commenced with the CPS, an exemption period of March 31, 2010 was given to some workers, who may want to retire. This is why you cannot see anybody going into the Pay As You Go Scheme anymore because the exception period was over as at March 31, 2010. If you were in service before April 2007, there was a certain aspect of your entitlement that ought to be paid up by the government, which is called accrued right. This commission ensures that the accrued right is credited into the RSA account of the individual.
    Let me also state that we have two sets of retirees under the CPS: those with accrued rights and those without accrued rights. The set with accrued right are those who were in service before March 31, 2007, when we started, while the set without accrued rights are those recruited from April 2007. For those who have accrued rights, we still have a lot of work to do because a major part of their entitlements is under the old scheme, which is to be paid into their accounts as accrued rights. We have to look at their employment record to be sure that the entitlement of somebody, who has worked in Enugu State before coming to Lagos is captured and so we still have to request for the establishment part. But it takes a little bit of time to ensure that we pay them their dues and pay correctly. For those, who joined service after April 2007 till date, if they leave service today, their money is already sitting in their account and they can start to draw their pension from the following month. All we need to do is to issue a clearance letter to enable them access it and they are free. I must note that these set of people are the easiest for us to handle in Lagos today.
    The issue of ghost retirees has been a challenge. What is the experience in Lagos?
    The issue of ghost retirees cannot happen again in Lagos and this is the beauty of the CPS. Unlike the Pay As You Go entitlement, which is pension gratuity and obligation paid by the state to individuals. In the new dispensation we don’t pay to any individual, but into the RSA accounts of workers. It then becomes the responsibility of the PFAs to pay entitlements. So, the issue of ghost retirees does not arise as it has been totally eradicated in Lagos.
    Let me also say that the CPS has been running in the country for about 12 years and there has not been any incidence of fraud recorded because of the way it has been created. You cannot open two accounts because we maintain a database of all retirees with PenCom. This is one of the successes that we have been able to record in the state and even in the country at large. So, in terms of paying entitlements, we have made payments till date. We’ve been paying pensions in the past, but there has been an increased tempo in the last one year. Before this administration we used to pay pension in terms of accrued rights on a quarterly basis, but since the government of Akinwunmi Ambode we have been paying it monthly. The accrued rights are paid into the RSA managed by their PFAs. So, in essence the state government is totally removed from the process of paying retirees for life. Under the CPS we don’t have any business with pensioners. You cannot come to Lagos and say you want pension increase. It won’t happen because we don’t pay you pensions. It is the responsibility of the PFAs to pay pension. Lagos State’s obligation is to fund your account and it is left for your PFA to invest it and earn you good returns. The government will also continue to maintain its liabilities until the last pensioner dies.
    How many workers are still under the Pay As You Go scheme?
    We cannot envisage when the last person will die until it happens. We have different agencies in the state under the old scheme. We have Teachers Establishment Pension Office (TEPO) with over 6,000 retirees. We also have the main stream and local government retirees. In all, we have about 13,000 retirees under the old scheme and what that means is that government will continue to pay them pension. If pension increases from the federal government, it has to be domesticated in Lagos State. The fact that the Federal Government has increased pension by 53 per cent does not automatically mean that Lagos must also increase it. It has to be domesticated and must be in line with the resources of the state. If we have money we may even pay more than that, but the fact remains that whatever is done at the federal is not automatically binding on any state.
    In terms of increases, yes, Lagos State has been increasing pension packages like we just did with the 15 per cent and six per cent. But the new one that has just begun at the federal level is yet to be implemented in the state. But we are currently looking into it. We want to have something that is adequate and commensurate, taking into consideration inflation and the state of our economy, and of course, the power of the naira. All these are being looked at for the Pay As You Go pensioners.
    What is your advice to other states that are yet to join the new scheme?
    Like I said earlier, it is very important for you to be sure of a project before you start it. Some started the CPS and could not implement it because they did not get it right from the beginning. Lagos is a model state because once we start a project, we don’t look back. We are able to take a futuristic look into what we are going into. Some states rushed and started to contribute 18 per cent, but they got stuck in the middle and could not continue. In Lagos, we are not like that and that’s why we are a model state. The Federal Government started it in 2004, but we did not implement it until 2007 when we were convinced we could fund it. Since then, we have not stopped. We have put in place features such as ICT infrastructure to ensure that once your salary is paid, contributions are deducted and credited to your RSA account. The government from the very first day, based on a lot of discussion, was made to understand that the CPS is based on commitment and it was ready to be committed to that course.
    Under the old system, pay as you go scheme, all the liabilities fall on the government and that is why majority of them still have pensioners as far back as 2010 yet to be paid. They keep on loading the liabilities on the government without making provisions for it. At the end, the government is tied to the employees for life.
    All over the world, the Pay As You Go has been acknowledged as very expensive way of funding retirement liabilities and a lot of countries are going out of it. So, for you to stay in the old system, it shows that you lack understanding of what is going on globally. This means you are not thinking of a solution, but compounding your pension problem. If the people that introduced us to it are moving away to something that is more affordable, why should we stay and be stucked?
    So, I think there is need for more education of major stakeholders, because with all due respect, they are just creating a mess for themselves. In Lagos today, we can sleep with our eyes closed. Yes, we may have funding challenges because the liabilities of the CPS are huge. Apart from the contributions to RSA accounts, the accrued rights obligations are huge. Our past service liabilities in terms of contribution is about N200 billion. On a yearly basis, our obligation is about N15 billion and we have budgeted for it.
    Like I said, where there is an understanding, there will be a way. In terms of people, who have their entitlements under the old scheme, we have determined their liabilities. We know that it will be x billion naira and the government, having been made aware, is already looking for funds to provide for it. People say we are getting it right, it is not just because the fund is available, but because of the commitment. There are so many things contending with state funds today but the state government understands the fact that it has to invest in its workers to get their commitment to the business for which they have been employed. This year, for instance, accrued rights is about N16 billion. If we take into consideration the funding percentage, which is indicated in our law to fund accrued right which is a paltry five per cent of the salary, it is nowhere near the N16 billion that we have for funding accrued rights. Governor Ambode is aware of this and what he has done is to inject additional 6.5 per cent so that there won’t be a gap.
    How much has the state paid till date under the CPS?
    In terms of contributions, we have paid nothing less than N70 billion as at December. We have paid almost N21 billion accrued rights in one year and this is just to tell you how huge our funding obligation is. We had a few obligations in the past, but like I said we are still a lot better than other states. It is the fund that was injected with the normal funding obligation that has been clearing our backlogs.
    How do you monitor the PFAs taking these contributions from you?
    There is need to understand that the PFAs don’t take contributions, but they invest them. These contributions are with the PFCs, so there is no risk with the PFA. If a PFA goes under today, it means nothing under the CPS because the funds is sitting with PFCs, who have no other responsibility than to hold the pension fund assets in custody while they give report to PenCom. The PFA cannot ask the PFC to transfer funds. Our business with the PFAs is to ensure that they grow the funds because they are the ones, who invest and on paper.
    LASPEC meets them once in two months to know how they are investing the funds. PenCom has given them investment guidelines to follow. For instance, they can’t do more 35 per cent in money market, 30 per cent in corporate bonds and state bonds 10 per cent and 100 per cent in treasury bills because treasury bills are secure. For us, we want to know whether you are a risk lover or a risk neutral person. In which case, if you are a risk lover, you will take risk and the risky aspect is with the equities and so if you go the higher mark, we will know that you love taking risk. There are some that are risk averse and there are risk lovers. It depends on them but our own is to monitor them that they are not jeopardising the assets of our people because in this new scheme, if an individual loses fund, he will bear the brunt.
    That is why we must monitor the PFAs to ensure that you are a risk neutral person. We also want to be sure that they are paying our pensioners on time, giving regular information on the RSA account, create awareness and other responsibility that they are mandated to carry out over our contributors and retirees. One of the other things that we did to aid out the pension payment process was that we issued a flyer detailing the two benefit modes, which are the annuity and programme withdrawal.
    There was a circular from PenCom, directing PFAs not to transfer funds for annuity purposes to insurance companies. At present, some retirees are stranded because their funds cannot be transferred to insurance companies. What is your take on this?
    This is a burning issue now and very technical. In my own view as a neutral person, the annuity business is risky, totally different from the fund management business of PFA. A PFA is a fund manager. An annuity service provider is into the business of risks, which is insurance. It is about whether this person will die early or at a longer period and as such, they are two different businesses. The PFA, who is just managing your money, is in the business of saying I am investing it for you and whenever you die, your relatives will have a balance, including the return on investment to receive. I am just managing your fund.
    The other one, which is insurance, is saying the money you bring to me to pay your monthly pension, with is no longer your money, is premium. This is because what you are doing is entering into a contract with insurance, that for as long as you live, the insurance company will be paying your pension. So, what you are bringing into the company is consideration for the promise to pay you pension for as long as you live and that is why it is no longer your money, but premium.
    Insurance is a pool of fund and the annuity fund, just like motor insurance, goes into the pool. There is a guarantee period for those that will die under 10years. But for those that died after 10 years, nothing is paid to their dependants. However, if they live for 100 years they will continue to collect their pensions. The pension element is there on both sides. If the contribution from the PRA is what gives rise to the contributions to buy annuity, then it means PenCom must put an eye on it.
    This is because there is a difference between myself as an individual going to an insurance company that I want to do annuity, that is, I have come on my own. My money can remain with the insurance company. But if it is the CPS that wants to ensure that pensions are paid as and when due, then the PFAs should keep the money with custodians. If an insurance company is taking annuity from the RSA, in my own opinion, PenCom must put an eye on the disbursement of that fund because the individual did not come willingly.
    We have had instances where insurance companies collapsed and people drawing pension got their pensions stopped. So, to secure the benefits of people, who take annuity, I am strongly of the opinion that the fund should be paid to custodians to secure it. You can’t secure the one with the PFAs, which is programme withdrawal, and leave annuity hanging. However, PenCom needs to note that it does not have control over annuity fund. It only has control over programme withdrawal funds with PFAs.
    NAICOM is represented on the board of Pencom. So, NAICOM regulates the insurance firms and Pencom regulates the PFAs. The body representing insurance, that is well verse in the insurance industry, should be allowed to regulate annuity while the funds are kept with custodians. There is no way they will make headway if they don’t get this area right. NAICOM must let PenCom know the way insurance operates and the latter should accommodate it within the ambit of custodianship arrangement.
    So, was there a lapse in the law from the beginning?
    It is not a lapse. It is because people don’t understand the two businesses very well. The fund must be strictly regulated and if it is regulated from contribution point and is not being regulated up to the point of payment, then there is a disconnect somewhere. It is crucial for us to note that if an insurance company goes under, it will put the annuitant at risk.
    But what happens when PFCs that are subsidiaries of banks go under?
    The PFC is just a custodian and subsidiaries of banks. The money transferred to them is not held in physical cash. They only execute investment instructions, which state where and who to invest with. For instance, Oceanic PFC has gone under, but there is no outcry because they are not holding physical cash. This ensures that the PFAs do not do hanky-panky that we are noted for in the country. I think it is a war between the insurance and pension industry, but it is very easy and that is why they need to seek opinion. I think it is just about the two industries understanding each other’s business very well. Insurers must understand that this fund is not coming to them by their own effort, but from the RSA account. PenCom cannot say they are regulating PFAs and leave the other leg. But the funds must be there only for annuity purposes and then the regulator, who supervises them, must monitor the way they invest it and that it is separated from the companies’ funds. PenCom has to stay away from regulating the annuity business. They just have to go back to the drawing board. There must be a separation.
    What are the things to be done to boost retirees’ welfare?
    We are looking at our retirees having identity cards that will allow them to have access to free medicals in government hospitals.
    We will also be having a programme called Retirees’ Day Out with the governor very soon. It is a maiden one.

  • Why I’m being persecuted by PenCom, by Duru

    Why I’m being persecuted by PenCom, by Duru

    A former two-term House of Representatives member and Vice Chairman of First Guarantee Pension Limited (FGPL), Nze Chidi Duru, was recently detained by the police for almost a week on the instruction of the National Pension Commission. In this interview with ADEKUNLE YUSUF, he chronicles his ordeals over his running battles with the National Pension Commission, which took over FGPL six years ago in disobedience to a court ruling. 

    It has to do with the ownership of a company, First Guarantee Pension Limited (FGPL) That I founded in 2004. I promoted it and then invited shareholders to invest in it. On the January 4, 2017, I received through my solicitor a copy of a letter written by the Attorney-General of the Federation and Justice Minister to the director-general of the National Pension Commission, restating the position of the ministry that there are two prior letters of August 17, 2011 and September 8, 2011; that it stands by the content of those letters and reprimanding the National Pension Commission for consistently disobeying orders of the court, and requesting the director-general to immediately comply with the relevant judgments of the court. It will interest you to note that in his capacity, the Minister of Justice is not just acting as the Chief Law Officer of Nigeria, he is also a party in the suit, which we sued the National Pension Commission in 2011.

    In December last year, we received a communication from the office of the Inspector-General of Police (IGP) following my request as the Vice Chairman of First Guarantee Pension Ltd to immediately deploy men and materials to protect the premises of FGPL in Abuja and Lagos where we have offices. Upon the deployment of the men from the Lagos Command and the signal sent to Area F to carry out the IGP, I visited the office of the FGPL at Oregun, Lagos. That was my first time of going to the office in the last six years, because what we’ve had in the last six years is the imposition of staff of the National Pension Commission on the office of FGPL in clear disregard and disobedience of a court order and judgment of Justice Okorowo of Abuja Federal High Court.

    So, it was my first time of venturing into the office in the last six years. Immediately I entered, the three impostors who are staff of the National Pension Commission imposed on FGPL quickly exited the office on sighting me, and were nowhere to be found. At 1:20pm, I went out for lunch and when I got back, what then happened was that at about 5:20pm, I saw two well-dressed police officers who informed me and my colleagues who were with me that they had been sent by the Commissioner of Police, Lagos State. They said they received an alert that the premises of FGPL was being invaded by hoodlums and thugs who had done everything possible to beat up members of staff and take over the premises of FGPL. And that they had a clear directive from their superior to seal up the premises. It was an alarm for me. Second, it was a bit of disappointment because it was the same Commissioner of Police that had deployed men from Area F to have an active patrol around the premises of the company. More so, before the deployment of men from the Area F, the Lagos Command had done the surveillance of the premises of FGPL and found out that there are two officers of the Nigeria Police that have been constantly present in the premises of FGPL in the last five years. So, if there has been a question of invasion of hoodlums or thugs taking over FGPL, I would believe that these officers of the Nigeria Police would be the ones to alert the Commissioner of Police to the development, or alert the nearby police station for subsequent action to be taken.

    But being a law abiding citizen, I offered at their request to go with them to see the Commissioner of Police; more particularly on the need not to seal up the FGPL, because at this time, the workers had closed for the day, and it would not be nice that the office would not open when the workers resume the next day. They would not be able to gain access to the premises, nor be able to attend to the public. I went with the police officer to the office of the Commissioner of Police. To my greatest surprise, I met those three workers of the National Pension Commission right there. Those were the three people who had earlier exited the office on my arrival. And in addition to that, I also saw six other staffs of the National Pension Commission in attendance at the office of the commissioner, making a total of nine employees of the National Pension Commission. The police chief addressed us and repeated that the office of the FGPL remains sealed and that he would not have the time to attend to us because time was far gone and that we should report back the next day at 10am.

    I told him that that was a decision I would not expect a commissioner of police to take lightly; because as a lawyer, I am well informed within my rights. The commissioner has no right to seal up the premises of any company without first and foremost obtaining a court order. That, I felt, was a very irresponsible decision for the commissioner to make. And based on my strong protest, he conceded. He instructed subordinates that they should go and unseal the office and he further restated that we should come back at 10am the next day for a meeting. I told him there and then that I have gone through the cycle before and I hope that was not another tactic to remove us from the premises of FGPL in order to grant access to the impostors from the National Pension Commission. He said: “No, not at all,” that he was there to mediate and maintain law and order. The next morning, I was at the commissioner’s office exactly five minutes to 10am; and going by the tradition of impunity on the part of National Pension Commission, we received information its workers had resumed at the office of FGPL as at 8am on January 13, 2017. I complained to the Deputy Commissioner of Police (DCP), who advised that I should take my complaint to the commissioner, who arrived at his office by 10:45am. The commissioner could not see us until 12pm. At the meeting, which turned out to be a charade; the commissioner simply informed us that he had a clear directive and instruction from the AIG in Zone 2 to transfer the case file to his office, and that the AIG has assumed responsibility over the matter. And I could again see the handwriting on the wall that they have deployed the usual tactics of impunity, their usual tactics of disregard for rule of law and constituted authority and have again employed the act of intimidation to ensure that they gain their way through the back door process into FGPL.

    Being a law-abiding citizen, I expected the commissioner to be sufficiently upset and angry that, despite his words the previous day, the same nine National Pension Commission officers resumed at FGPL. When I informed him that the impostors from National Pension Commission have resumed in the office of FGPL, it didn’t cut any ice with the commissioner. That was how the nine of us went to the AIG’s office, including my company secretary, two other friends of mine who came to the police station and myself.

    A twist at AIG Zone II’s office

    The moment we entered the office of AIG Zone 2, it became very obvious that this was no longer a kid’s play because the hands of the clock had turned full circle. The AIG refused to see me or anybody that had anything to do with me, including my lawyers. But he granted audience to the National Pension Commission workers who were imposed FGPL in the last six years and six other persons who had joined them. Later, we advised to see the DC Zone 2. When we went in to see him, we were now told that the matter would be handled by Assistant Commissioner (AC) Zone 2. By the time we went to the office of the AC, the number of National Pension Commission’s workers had risen from nine to 13. By the time we were to enter the office of the AC, there was no place for us to sit. The AC said he was going to mediate in the matter. How could it be possible for the police to mediate in a matter that the court had given a decision, a clear judgment in? How could it possible for the police to mediate in a matter that the Attorney-General of the Federal Republic of Nigeria had considered and had very recently, with his letter dated January 4, 2017, given an opinion on the matter? And how could it, more importantly, be possible for the police to mediate in a matter where Justice G.O. Kolawole in his well-considered ruling of February 6, 2013, and November 10, 2016, had restrained the Nigeria Police from getting involved, inviting me, arresting me or interrogating me on any matter that has to do with First Guarantee Pension Ltd, particularly with respect to the target examination report on the basis of which the three imposters had been appointed into the First Guarantee Pension Ltd? These statements of mine did not cut an ice with the police; because my secretary had overheard that the National Pension Commission had ‘allegedly’ settled the police.

    Obviously, there had been a pre-determined plan and the matter began to play itself out speedily. They invited the OC Legal, who called us out and began to ask us to make a statement. I asked the OC Legal, is there a petition against me on the basis of which I can read the petition to be able to make a statement? He said No, there’s no petition against me other than I should just make a statement and an IPO will investigate the matter. And one interesting thing that happened was that immediately thereafter, they took away my phone and that of my legal adviser, Smart Iheazor, but the 13 workers of the National Pension Commission retained their phones. At this time, it was between 2:30pm and 3pm, we began the process of dilly-dallying. They would call me to go to this office and go to that office. The long and short of it is that I was told to make a statement in respect of who I am, my relationship with FGPL and why I visited the office. The same question was put across to my legal adviser, who was separated in a different room. It wasn’t until about 7:30pm that I was informed by the IPO that I am a suspect and that I have been detained for armed robbery, stealing, conspiracy to commit felony and potentially also for murder!

    I was then handed over to the guardroom. From the guardroom office, I was transferred to a cell without access to my family, my lawyer, and my medication. The next day, at about 10:30am, I was brought out; they continued with their interrogation that the day I visited FGPL, one of the parties that went with me made away with a laptop and three office files. And my statement was very clear: it is impossible for me or any of my friends who visited the premises to make away with any property of FGPL. First and foremost, FGPL is owned by me, founded by me, and that it is impossible for an owner to steal his property – either a computer, or files or a car key they said is missing. They then asked another question, why am I presenting myself as FGPL chairman and I repeated that I am the founder, owner and largest shareholder in FGPL with an investment of over N250 million. Therefore, it is impossible for me to do anything that is against the law. I repeated my advice to them that the step they are taking is against the order and judgment of a number of courts in Nigeria.

    Police conducted a search on his hotel room

    At around 12:30pm of the same day, the OC Legal and one of his operatives drove me to the Southern Sun Hotel in Ikoyi, where I was staying to search my room. After that, a statement was made that there’s no material whatsoever – whether a laptop, file or document of FGPL found in the hotel where I was staying before the detention. I signed off, and they also signed off. About 3:30pm, I informed them that my medical condition was worsening because as at that time, I still have not had access to my drugs, my phones or my lawyers. I told them I needed to see a doctor urgently. I was assured as at 3:30pm I would be released on bail and that I would go home shortly. A bail application was prepared by my lawyer, which I signed, the IPO signed and the OC Legal informed me that I have been released and signed off. But he said to me that it required the signoff of the ACP, DCP and the AIG. The AIG had now told my lawyer that on my way out, he would like to see me. Later around 6:20pm, when the matter was dragging, the DC after a lot of persuasion, informed me that there’s a contrary instruction he just received from the AIG that I should not be released, that I should further be detained till Monday. By then, the IPO and OC Legal had noticed that I was throwing up in the premises, because there’s no medical facility in the cell. Fearing for their irresponsible act, and the consequences of what could happen if per chance I passed out in their cell, they quickly rushed me to the Police Hospital on Bourdillon Street, where I was under custody and protection of the police from Friday evening till Monday, January 16, 2017 in the emergency ward. I was to be referred to Ikeja because of my leg condition for medical observation, but the AC was detailed by the AIG to ensure that I was forcefully brought to the Magistrate’s Court. When the AC came, it was clear to him that I was not fit to appear before the court, but he insisted and literally took away the drip that was placed on me and I was taken to court in my night dress.

    At the court and other trials

    I was forcefully taken from the hospital to the court that day, Monday, January 16, 2017. The judge was hesitant to call our case; it was clear to the judge that I was not fit to take my plea and he said it in his opening statement that the man he is seeing is not medically fit to undertake an arraignment, but my lawyer insisted that he would take my plea and assured the judge he would do so for me to properly go and attend to my health. I was arraigned no longer for armed robbery, murder or conspiracy to commit felony but for theft, with a person now at large, of a laptop worth N350, 000. I was arraigned for stealing a file of FGPL, for holding out myself as FGPL chairman and an attempt to forcefully take over the promises of FGPL. This is consistent with the pattern of the director-general of the National Pension Commission, Mrs Chinelo Anohu-Amazu, who has sworn that over her dead body would she hand over FGPL back to the owner and founder of the company.

    It has been consistent because at her instigation, on January 29, 2013, the then IGP Abubakar, through the instrument of IG monitoring, declared me wanted and published my name in all the police posts in Abuja; again for stealing and conspiracy to commit felony. I approached Justice Kolawole on February 6, 2013. Justice Kolawole, under my fundamental human rights enforcement, restrained the police and their agencies from dabbling into the matter of FGPL, from arresting, or detaining me with respect to this matter. But in total disregard to the order, in total disregard to the substantive judgment of another judge, Justice D.U. Okorowo, that had nullified the special target report that Mrs. Chinelo as the Company Secretary then of the National Pension Commission had advised the commission to author and begin to implement. The police charged me before the Magistrate’s Court II in Abuja, and that was on March 2, 2013 without letting me know. Unknown to them, my lawyers found out where I had been charged; we entered an appearance and on March 28, 2013, the magistrate quashed that charge. And in an open court, in a loud voice, the magistrate shouted and it is written in his rule that: “This is an act of impunity that should not happen in a democratic environment as Nigeria, where the rule of law should be seen as a sine qua non, and that he feels so saddened that the agency of government that should actually be the officer and agency that should be implementing the judgment of the court is the agency that is bringing a beneficiary of the judgment of the court before his court for an act that could translate into impunity.” He quashed the charge; it did not stop the police.

    Stay of execution order

    Mrs. Anohu-Amazu has continued to make heavy weight of the statement of a purported stay of the judgment of Justice Okorowo by Justice Kolowale. It is important for me to now address this legal abracadabra. Upon the delivery of the judgment of Justice Okorowo on the 18th of July 2012, Pencom, on the advice of Mrs. Anohu-Amazu (then Company Secretary/Legal Adviser of Pencom before her elevation as acting director-general and substantive DG), approached the court of Justice Kolawole, then a vacation judge, to stay on a motion ex-parte the judgment of Justice Okorowo. As the case is ex-parte without hearing the parties to the suit, Justice Kolawale granted her prayer with a caveat as follows: “That in view of the fact that my vacation schedule will end on the 10/8/2012, the consideration of the 1st respondents (Pencom) motion on notice dated 26/7/12 shall be taken before the Hon Justice G.K. Olotu who is due to resume as vacation judge with effect from 13/8/12.” We immediately filed our brief of argument on August 3, 2013 against this questionable ex-parte order, which in any case, had a lifespan of just 14 days. PenCom immediately abandoned its motion on notice to be heard by Justice Olotu and instead appealed the judgment. It consequently filed a motion on notice for stay on the September 12, 2012, which it also abandoned knowing the practice directive of the Supreme Court that a judgment of the court cannot be stayed.

    Justice Okorowo issued an order restraining PenCom from implementing the target report on August 11, 2011, and in clear disobedience of the court order, PenCom, acting under the legal advice of its then company secretary, acted otherwise and inter alia removed FGPL directors and appointed an interim management on August 12, 2011. On August 17,  2011, the then AGF and Minister of Justice, Mohammed Adoke (SAN) wrote a letter requesting PenCom to obey the Court Order. In paragraph 5, it stated as follows: “I have carefully reviewed the said court order and it is my considered opinion that the decision and action of PenCom complained about are clearly in violation of the order, which is capable of exposing the government particularly the Honourale Attorney-General of the Federation, who is the 2nd Respondent in order, to unnecessary criticism and embarrassment.”

    Notwithstanding the above court order and the clear directive of the AGF, PenCom has continued to undermine the authority of the court.  Finally Justice Okorowo, on July 18, 2012, in a 126-page final judgment, upbraided PenCom for acting in a matter in clear contempt of the order of the court. It stated in page 119 to wit: “On 11th August, 2011, the court made an Interim Order which is in issue. The Court Order was served on the 1st respondent (Pencom) on 12th August 2011. Despite the knowledge of the order of court and the service of the processes of this court, the 1st respondent went ahead to deal with the subject matter of the case, interfering with the powers of this Court to decide the issues in the action.”

    Undercurrents behind the impasse

    I would start from the beginning. For me, it was a matter that I actually could not have wanted to bring to the public domain. I can only say that I should think that the problem of FGPL began in 2010, when we paid our first dividend. The DG of National Pension Commission, approached me (then as company secretary/legal adviser to National Pension Commission), and requested that I assign to her five per cent of the shareholding in FGPL. For me and until very recently, I thought that was a friendly joke; I could not consider it seriously and that was the beginning of the problem. And immediately after that, our then Managing Director, Wilson Ideva, began to act in a manner that was disrespectful of the FGPL Board of Directors and that led to our requesting him to resign. And what is interesting is that the same person we asked to resign from the company immediately resumed work as the Managing Director of Premium Pension Ltd, where Mrs. Anohu-Amazu’s family has substantial interests in, and he is still there currently. It shows you the link of what has happened. He was encouraged to disobey the Board of FGPL, where he was fired, and then he was picked up by them as a matter of protection. Mrs. Anohu-Amazu again, encouraged the National Pension Commission to write what they considered to be a special target report on the FGPL.

    Section 82 of the Pension Reform Act did say: “If for any reason, PenCom, in the annual report conduct its report or examination of a PFA or Pension Fund Custodian, PenCom would then have to submit that report to the board of the PFA or the board of PFC. The board of PFC will now, upon receipt of that report, call an extraordinary general meeting of the shareholders of the company to consider the report. The decision of the board of the shareholders is then communicated to the Pencom. Now, Mrs Anohu-Amazu, realising that I am the largest single shareholder of the company and that the majority of the shareholders of the company reposed confidence in the board, refused to follow these steps. Instead, what they did was to ask us to resign as board members. Immediately, we went to court and on August 11, 2011, Justice Okorowo issued an ex-parte order restraining them from implementing the special target report, pending the determination of the substantive suit. But despite that order of the court, they disregarded it, dissolved our board and appointed deployed National Pension Commission’s employees into FGPL.

    She has been running FGPL with PenCom employees in the last six years; and because of the recklessness and the fraud they have perpetrated in the place, they would not allow us toe return, unless compelled to leave the company for its rightful owners. That is why they are employing impunity, but I am very confident that she could do this under the immediate past administration; she will not succeed under the prevailing dispensation. It is impossible for her to continue with this level of impunity. FGPL is my baby; I founded it and envisioned it. That is why it is the only PFA that is founded by an individual, not by institution; the other PFAs are owned by insurance companies or banks, asset managers and stockbroking firms among others. FGPL is driven by an individual and it can only be my hard work that FGPL is a success. And despite all the intimidations and impunity, I am still committed to realizing the dream and vision for which FGPL was founded.

    One of our shareholders, George Ozodinobi, who used to collaborate with Mrs. Anohu-Amazu until he found out her clear intentions, has variously stated that the clear intention of the PenCom chief was to transfer FGPL asset to her mother’s PFA which is a clear sense of conflict of interest and an irresponsible act. Any wonder that that FGPL had not held any AGM/EGM in the last five years and is currently carrying a tax liability of over N1.3 billion. All the efforts to incident a crime in a purely commercial transaction is just her way of getting back at me for refusing to accede to her request of taking over FGPL. I am not surprised that this could happen, given her penchance for lawlessness. I sit on the boards of over eight companies providing employment to over 1,000 Nigerians and expatriates and in none of these companies has my honour been questioned nor my integrity in doubt. And to be put through this in a company that I invested over N250 million shows her desperation to put me away. I want Nigerians to know just before I die, that should anything happen to me, the persons to hold responsible are no other than Mrs. Anohu-Amazu and Kassim Ibrahim Imam.

    His final take and next line of action

    In keeping with her tradition of impunity, the PenCom director-general will expect that we back down and allow her to continue to run FGPL. And I think that is a fundamental mistake on her part. It is with regret that I would say that the National Pension Commission that we envisioned, when I worked very hard to promote the pension industry in Nigeria, is not the same we wanted in 2004 when Fola Adeola was the chairman of that Commission. I believe that a regulator cannot at the same time be an operator in the same industry. There is bound to be conflict of interests. It is on that note that I insist that the National Pension Commission’s interim measure has outlived its objective. The arbitrary takeover of FGPL, which they claimed was on an interim measure, has now appeared to be a permanent measure. An interim measure will not last more than three months, but this has lasted six years, if you take it to March 22 of this year because their invasion of FGPL happened March 22, 2011. It is regrettable that this has happened; it is regrettable that we have national commission director-general that has not risen to the occasion to determine that it is not in any position to manage anybody’s business and does not care about the impact and consequences of what is going on in FGPL in the industry.

    Rather than focus on what is important – where to invest the assets of pension industry and to ensure that the rate of returns is sufficient in a country like Nigeria to keep pace with inflationary trend – the PenCom DG is focusing on how to take over FGPL to ensure that the rightful owner, the founder and the promoter and largest shareholder of the business does not take benefits from the investment he has done. Her focus is to ensure that by hook or crook, Nze Chidi Duru goes to jail. But we are in a democracy, in a government of rule of law; a government that is different from the government of the past. For me, all the acts of impunity that have happened with regards to FGPL are a damning report on the national commission that she leads. I believe that by this singular act, Mrs. Chinelu Anohu-Amazu is not fit to continue to be the Director-General of the National Pension Commission. She believes and behaves as if she is god; but I know she is not greater than the living God.

    As for the police and the Economic and Financial Crimes Commission (EFCC), it is regrettable that they have lent themselves to the impunity of a lawless PenCom, an institution that has no respect for the rule of law. There are conflicts involved in all these; not just that there is a judgment of the court on this; but with respect to the filing of audited account of FGPL. According to CAMA (Companies and Allied Matters Act) Section 235, it’s mandatory that every company must file their report to Corporate Affairs Commission at the end of their business financial year. Our financial year has closed respectively over five times in the last five years – between 2011 and 2016 – and there is no filing of FGPL annual report before the CAC. More importantly, it is only when you file and auditors do their own part that the company would be assessed to pay their tax. What we found recently is that FGPL is carrying a fat liability of over N500 million. This is a fund that the government could have used to provide social services, infrastructure for the people, not to talk of Pay As You Earn (PAYE), or company tax available to Nigerians. So, FGPL, as it stands today, has a huge tax liability of close to N2 billion. And government is not accessing this fund simply because one person is standing the law on its head using impunity.

  • FGPL: Nze Duru is off course on court order, PenCom tells DPPF

    FGPL: Nze Duru is off course on court order, PenCom tells DPPF

    The National Pension Commission (PenCom) has declared that its dissolution of the board of First Guarantee Pension Limited (FGPL) was solely guided by its statutory mandate of protecting pension assets and ensuring that only fit and proper persons manage the assets.

    This, according to PenCom, is contrary to a claim by a former Member of the House of Representatives, Hon. Nze Chidi Duru, that PenCom was wrong to have sacked the FGPL board.

    Duru and other members of the disbanded board had, in a petition, accused PenCom of refusal to comply with the judgment of a Federal High Court which restrained the commission from enforcing its dismissal of the former Board over alleged breaches of the Code of Ethics and Business Practices and the Code of Corporate Governance for Licensed Operators issued by PenCom, as well as the provisions of the Pension Reform Act (PRA) 2004 (as it was at the time) and other laws of Nigeria.

    However, PenCom in its response to a letter from the Director of Public Prosecution of the Federation (DPPF), Mr. U.E Mohammed, calling the Commission’s attention to the petition, denied the allegation.

    In theletter dated January 17, 2017, sighted by The Nation at the Federal Ministry of Justice, PenCom urged the DPPF to discountenance the petition, explaining that “It is a fact that the judgment of Justice Okorowo had been stayed and is a matter of pending appeal (CA/A/428/2012), which the AGF is a party; the Appeal has been adjourned to 5 April, 2017”.

    It added: “The DPPF may wish to note that contrary to the allegations made by the present petitioners, the Commission had neither disobeyed any court orders nor frustrated the decision of the court, which was given in the civil suit, FHC/ABJ.709/2011.

    “ An appeal against the Judgment had been filed and an order of stay of execution issued by Hon. Justice G.O Kolawole of the Federal High Court, Abuja, pending the appeal in CA/A/428/2012.

    “Indeed, the Honourable AGF had also filed a separate appeal challenging the same judgment of the Federal High Court in the case under reference through Mrs. Olabisi Soyebi (SAN) of Abdulahi Ibrahim & Co. The Appeals had been consolidated and adjourned to 5 April, 2017”.

    PenCom pointed out that  following a petition by Edward Nathan Sonnenbergs, the South African Law firm representing Novare Holdings (Pty) Limited, to the AGF alleging that the Interim Management Committee (IMC) established by PenCom in line with the provisions of the Pension Reform Act had continued to act in breach of the Order of Court made in suit No. FHC/ABJ.709/2011, the former AGF, Mohammed Bello Adoke (SAN), summoned a meeting of all parties in his office on August 26, 2011, where it was established that the action of the Commission had been concluded prior to the service of the Court Order.

    “The Hon. AGF asserted as follows: that the Commission was well within its powers to establish the IMC; that the affected Directors stood removed; that the IMC should remain, but should refrain from acts that might impinge on the personal rights of Mr. Roper should the substantive application be in his favour; and that the findings of the Commission against the erstwhile Directors of FGPL were tainted with criminality”, PenCom added.

    The Commission said it was however, surprised to receive a letter marked HAGF/PENCOM/2011.VOL.1 dated 8, 2011, signed by one Mr. P.C Okorie purporting to act under the directive of the AGF alleging otherwise.

    The Police had, on January 16, 2017, arraigned Chidi Duru and Smart Iheazor, before A. A. Adefulire of the Chief Magistrate Court 2, Tinubu, Lagos State, for alleged theft, conspiracy, impersonation, and breach of peace during an alleged invasion of the headquarters of the FGPL by the accused.

  • Acting CJN blames corruption for ineffective pension system

    Acting CJN blames corruption for ineffective pension system

    …PENCOM DG seeks Judiciary’s support

     

    The Acting Chief Justice of Nigeria (CJN), Justice Walter Onnoghen has attributed the ineffectiveness of the nation’s pension system to corruption and poor application of existing laws.

    He said the pension system will achieve its intended objective where players in the sector are guided by accountability and commitment to existing regulations.

    Justice Onnoghen spoke in Abuja Thursday at a two-day sensitisation workshop on the Contributory Pension Scheme (CPS) for Justices, judges and senior judicial officers, organised by the National Pension Commission (PENCOM).

    The Acting CJN said:”We owe a duty to this generation and generations yet unborn to help ensure that pensioners, who devoted their lives and strengths in the service of Nigeria, receive their pension benefits as and when due.

    “To consolidate this consciousness, we must support the Federal Government’s fight against corruption.

    “Here lies the need for objectivity and impartiality by regulatory officials, accountability by pension administrators and transparency by pension fund custodians and other stakeholders,” he said.

    Justice Onnoghen noted that some of the key challenges of the pension system include how well pension assets are managed; how well enabling laws and regulations are implemented; how well pensioner are treated, and how well the laws and regulations are fairly applied and interpreted.

    He added that the successful resolution of the identified challenges will guarantee that every person, who worked in either the public or private sector receives his retirement benefits as and when due.

    “I must caution that technicalities by lawyers and attitudes of certain employers, pension administrators and pension custodians must, in no way, hamper the good objectives of the Federal Government,” Justice Onnoghen said.

    PENCOM’s Director General, Mrs. Chinelo Ahonu-Amazu explained that the workshop was intended to familiarise participants, particularly the Justices and judges on the innovative provisions of the Pension Reform Act (PRA) 2014.

    She said better understanding of the provisions of the new pension law by judicial officers will allow for prompt and effective resolution of pension disputes.

    “As it is with all new initiatives, the implementation process often results in certain challenges, and disputes may arise due to lack of adequate understanding of responsibilities on the part of stakeholders or misconstruction of the provisions of the Act.

    “Furthermore, in the course of enforcing compliance on recalcitrant employers by the commission, some disputes emanate that are ultimately resolved in the courts.

    “Therefore, the important role of the Judiciary in ensuring that the pension reform remains on course and deepened, as enshrined in the PRA 2014 cannot be over-emphasised,” the PENCOM DG said.

    Heads of courts, at the event are – Justices Zainab Bulkachuwa (President, Court of Appeal), Ibrahim Buba (Chief Judge, Federal High Court) and Babatunde Adejumo (President, National Industrial Court) assured of their support in ensuring the realisation of the objectives of PRA 2014.

    Justice Adejumo, who noted that the support of lawyers was necessary to achieve success, suggested that PENCOM organise similar workshops for legal practitioners.