The Federal Government has released has said payment of N66 billion pension arrears will commence next week.
The money is part of the N88 billion budgeted for pension arrears in the 2024 budget out of which N22 billion, representing 25% had been paid, according the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
According to latest report, the federal government and some four states of the federation are burdened by pension arrears to the tune of N193 billion with FG owing N88 billion and the states have N105 billion pension backlogs.
Edun, who addressed hundreds of protesting retirees from Nigeria’s Contributory Pension Scheme on Tuesday assured that the federal government was ready to settle its N88 billion as already earmarked in the 2024 budget.
However, it has pledged to settle the N88bn earmarked for pension arrears in the 2024 budget.
The retirees, who staged a protest at the Ministry of Finance on Tuesday lamented prolonged delays in the payment of their pension arrears, and blocked the main entrance of the ministry demanding an audience with Edun.
Edun assured the retirees that the remaining funds would be paid by the end of the year, with disbursements set to commence next week.
He attributed the pension backlog to challenges within the older system while reaffirming the government’s commitment to resolving the issue.
“What has happened is that there is a backlog in terms of contributions, the backlog under the old system and there is a solution. There has been a committee under the Head of Service, which has met the Minister of Budget, and we have a plan for dealing with the backlog under the Contributory Pension Scheme.
“In addition, under the current budget (2024), there is about N88 billion of which N22 billion has been paid. And that balance, we are committed to paying it. It has to be paid this year. We are committed to doing that starting next week”, he said.
For a sustainable long-term solution, Edun revealed that the government is considering raising funds through the capital market to clear the backlog entirely.
“In terms of the longer term, it is a huge amount, and we have to have a solution that takes care of everybody. That is being worked on. It’s going to be a question of going to the capital market and raising an instrument that allows that backlog to be cleared once and for all.
“In the immediate term, there will be payment for what is under the current budget and we are working, and we are going to present to Mr President a viable solution using the financial market to take care of the huge backlog under the contributory pension scheme.
“Your funding under the budget will be paid. We will start next week and pay for everything that we can under the current budget as approved by the National Assembly,” Edun said.
The minister’s assurances came as retirees across the country continue to express concerns over delayed payments, calling for prompt action to alleviate their financial hardships.
