This week, we present to you an accomplished civil servant. He is Mr. Benjamin Igo, a one-time civil servant in the Administrative Officers Class. He rose through the ranks and eventually became a Permanent Secretary in 2010. He served in that capacity in various organisations within the Delta State Civil Service until 2018, when he retired.
Two months later, he was appointed as the Chairman, Bureau of Local Government Pensions, Delta State. He had successfully served his first tenure of four years, and on 3rd November 2022, he was reappointed for a second tenure, as the Chairman of the Board. In this chat with him, he spoke on a number of issues, particularly as it concerns pensioners in the Local Government service, the accumulated pension arrears before he came on board, the bold steps taken by him and his team to make life better for the pensioners, and many more. Excerpts.
Looking back, shall we share in your experience as an administrator in the Delta State Civil Service?
My experience has been what I would describe as a potpourri, a mixture of experiences that have moulded me. When I assumed duty here, I discovered that there were serious problems, especially non-payment of pensioners. We had so many lined up, a backlog of pensions, and no funds to clear them.
During that period, we had several confrontations without pensioners. You must have seen the number of times they protested at the Government House. Those demonstrations were painful and eye-opening. Seeing some of these pensioners, who had been awaiting payment for many years, was traumatic to me. But thank God, I had a very good team, particularly the Secretary of the Board, the Director of Contributory Pensions, and others. They were very helpful. We interacted with the pensioners, listened to their problems, and were able to calm them down.
That was the situation until early 2023. When I came in, the government’s monthly allocation to us was N180 million, which was grossly inadequate to clear the huge backlog of accrued pension rights. Under His Excellency Senator (Dr) Ifeanyi Okowa’s administration, this was later increased to 300 million and eventually to 500 million after persistent pressure from us. By 2023, the government, seeing the backlog of about 51 billion at that time, decided to obtain a loan to address the payments. The process was initiated but not finalised until His Excellency, Dr. Ifeanyi Okowa, left office.
During the electioneering period, the current Governor, His Excellency, the Rt. Hon. Sheriff Oborevwori appealed to pensioners and promised that if elected, he would address their plight. True to his word, upon assumption of office, he finalised the process of obtaining the N40 billion loan.
He approved the local government chairmen to syndicate the loan, which they did. Let me be clear: the loan was obtained by the local government chairmen, not the state government. What the Governor did was to appeal to them and convince them of the necessity. Based on that moral persuasion, the chairmen agreed, obtained the N40 billion loan, and made the funds available to us.
That money enabled us to begin clearing the backlog of accrued pension rights owed to pensioners. This week experience taught me the importance of compassion. Some of these pensioners had been owed for four, five, or six years. Thankfully, most of those problems have now been cleared.
After utilising the N40 billion, the local government chairmen also provided an additional N1.8 billion, which we applied as well. To date, we have paid over 11,000 pensioners.
So there is still a backlog?
Yes, there is, but let me take you back to when the Contributory Pension Scheme started. The proper thing would have been for local governments to fund their accrued rights when the scheme began. A consultant was engaged to assess the accrued rights of workers.
Based on the Pension Reform Law of 2008, all local government workers were required to retire by the 31st of March 2011. Those who had less than two years left remained under the old pension scheme, while those with more than two years migrated to the contributory pension scheme.
At that point, the government determined all accrued rights and benefits as of that date. Ideally, those accrued rights should have been funded, meaning that if the government had the money, then each retiree’s benefit would have been paid into their Retirement Savings Account. But the government had no such funds.
The plan was that, on a monthly basis, money would be released to the Board to address accrued rights as pensioners retired. Unfortunately, funding was inconsistent.
Payments were made whenever funds were available, and the arrears kept piling up.
By the time we came in, the backlog had grown to over N40 billion. We started paying as funds were released. But because many primary school teachers and local government workers were employed around the same time, large groups, sometimes over a hundred, would retire at once, further increasing the backlog.
It was a very traumatic experience to owe so much without funds to pay, but thank God the situation has changed. Over 11,000 retirees have been paid.
How many are still left unpaid?
It is hard to give an exact figure because people retire every day. We have paid up to September 2024. The number of those retiring after that period, October 2024 to April 2025, has already been compiled and sent to our consultants, who are reviewing the data. Once the consultant and the local government Auditor verify and determine the correct entitlements, the information is returned to us, and we pay accordingly.
We have submitted the verified list to the Joint Accounts Allocation Committee (JAAC), requesting an additional N1.5 billion after the N40 billion and N1.8 billion already given to clear the next batch of retirees from October 2024 to April 2025. That’s where we are now.
How long will it take for this new batch to be paid?
It depends on when the local government chairmen release the funds. Once the money is available, we begin payment immediately. Given the current trend, I believe it won’t take long.
Recently, the Nigeria Labour Congress (NLC) suggested scrapping the Contributory Pension Scheme and reverting to the old system. What is your take on that?
I do not think that would be a wise decision. Historically, under the old system, governments owed pensioners heavily, which was why the Contributory Pension Scheme was introduced.
The beauty of the contributory system is that, with time, when we don’t need money from the local government to pay accrued rights of pensioners, pension payments will be based solely on the combined contributions of the employer and pensioners. Once accrued rights are fully funded, the system will become self-sustaining.
The current agitation to scrap the scheme arises only because accrued rights have not been completely funded. If that issue were resolved, no one would call for a return to the old system.
We must understand that the government has competing needs, and funds from the federal allocation are often insufficient. However, in my opinion, payment of pensioners should be prioritised. After serving for 35 years and attaining 60 years of age, no one deserves to be deprived of their livelihood. His Excellency understands this well; he is a man with a large heart.
Recently, a mini-survey showed that figures released by Pension Fund Administrators (PFAs) are not up to date, despite monthly deductions from staff salaries. Why is this so?
What piles up is not the contributions but the accrued rights. Every month, both employee and employer contributions ought to be remitted, but there have been technical challenges. I’ll allow the Director of Contributory Pensions to shed more light.
Director: Statutorily, at the end of each month, 7.5 per cent (the employee’s portion) and 10 per cent (the Government portion) are deducted. Local government councils pay salaries, not the Bureau, so the deducted funds are remitted into designated accounts.
However, remittance requires detailed contributor data, which must be obtained from local government councils or the Local Government Service Commission. Once compiled, the data must be formatted into schedules for transmission to the Pension Fund Administrators (PFAs).
Recently, the National Pension Commission introduced a new remittance format requiring the use of Pension Payment Solution Service Providers (PPSPs). Without engaging one, remittances cannot go through. We are in the process of engaging one, which has caused slight delays. Once completed, all outstanding remittances will be cleared.
Also, some workers are not meticulous with their Personal Identification Numbers (PINs). When transferred from one Local Government to another, they sometimes change their PINs, leading to duplicate records that require reconciliation. Some have not even enrolled in the Contributory Pension Scheme but still complain of non-payment. These are part of the challenges we face.
There’s a general belief that retirees must ‘grease palms’ or even part with some percentage before their pensions are processed. How true is this?
I have heard that rumour, but let me categorically state that it does not happen here. I challenge anyone to prove that, in the Local Government Pensions Board, one must bribe to be paid.
Once your documents are processed and entered into our system, you are paid strictly on a first-come, first-served basis, not by when you retired. If you retired three years ago but only just submitted your papers, you will be behind someone who retired yesterday and submitted theirs immediately.
We even call pensioners ourselves to come and collect their certificates when it is their turn. Our system is transparent. Anyone caught soliciting money is causing problems for themselves that may lead to losing their job. I have a reputation to protect. I served as Director of Pensions, Director of Budget, and Permanent Secretary for Economic Planning before retiring in 2018. Two months later, by the grace of God, I was appointed to this position. I didn’t lobby for it; I was called while in my village.
That credibility is what I guard jealously.
I once lost an aunt who pleaded with me to fast-track her payment because she was my relative. I explained the process to her, but two weeks later, she passed away without being paid. Her benefits were later paid to her next of kin. I could not jump the queue, not even for her.
Even the highest authorities respect our policy and never interfere.
You mentioned applying for an additional N1.5 billion. Have you received any response from the local governments?
Not yet. We only presented it at the last JAAC meeting. They will review it once funds arrive from Abuja. Given their cooperation so far, I am optimistic they will approve it.
Does the state government intervene financially in local government pensions?
No Local governments are financially independent. However, under Governor Ifeanyi Okowa, the state government intervened twice, providing N2.5 billion each time. If it becomes very necessary, I believe the present administration will also assist. When necessary, we appeal for help, and the government has always responded.
You are clearing a backlog. What is your projection? Will all arrears be cleared by December 2025 or 2026?
It all depends on funding. The consultant continues to review accrued rights, and once reports are submitted, we forward them to JAAC for approval and payment.
While more people retire each month, the backlog is gradually reducing, especially at the local government level. I believe that by the early 2030s, we would have completely overcome the problem of accrued rights.
Many pensioners complain that their monthly pensions are too small, barely enough to survive on. Considering the continuous depreciation of the naira, is there any plan to review pension rates?
It is not for us to decide whether pension payments or the amounts paid to individuals should be reviewed by the government. The government has the responsibility to review it, not us.
But what I do know is that pensions, from time to time, are usually reviewed. For instance, the old pension scheme was recently reviewed N32,000 was approved across the board for all those under that old pension scheme. N32,000 was added to every one of them.
Today, for us, we have paid all the arrears, and all our pensioners are earning that N32,000. We are not owing any pensioners in terms of the old pension; this bureau is not owing anybody. The arrears have been fully paid, and on a monthly basis, we are paying them.
I do think that possibly, pension payments will also be reviewed again, and additional monies will come into the hands of pensioners. I am praying that pensions be reviewed because I am also a pensioner.
Your Bureau is currently on local government tour? What informed this, and what has been the experience so far?
Yes. We are currently on sensitisation and enlightenment tours of Local Government Councils. From the experience we have here, we realised there is a need to sensitise our civil servants, local government workers, and primary school teachers on what the contributory pension scheme is all about. Many of them do not know.
Luckily for us, we were able to get a representative of PenCom, which is the National Pension Commission, who is always with us when visiting the local government councils. We have also been able to get representatives of the Pension Fund Administrators (PFAs). They usually accompany us to every council we visit.
This gives the active workforce the opportunity to ask relevant questions concerning the contributory pension scheme.
It also enables us to tell them the need to ensure their documentation is in perfect condition. On a month-to-month basis, they should ensure they monitor their Retirement Savings Account (RSA) so that whatever is due to them is paid into it as when due. These are the kinds of information we impart to them so that they take pension matters seriously.
Many of them do not take it seriously.
As I mentioned, there are other related issues we discuss with them, but that is the core reason for our tour to go around and meet our clientele, tell them what is expected of them, and ensure their documentation is in order.
As they work and move towards retirement, everything will be in perfect shape so that when they leave service, they will not have any scruples with their documentation. That, I think, is the main reason for our tour.
Director: The experience has been quite enriching, from the questions and comments of the stakeholders we meet, the local government chairmen, members of the political class, civil servants, and even retirees who also participate in the programmes.
From their comments and reactions so far, we can see that the purpose of the exercise is gradually being achieved. We are trying to bridge the information gap. There is a high level of ignorance about the scheme, and we are very sure that by the end of this tour, that ignorance will drop.
Some persons are not even aware of how the scheme operates, but by coming into interface with them with our team comprising representatives of the regulatory body (the National Pension Commission) and the PFAs who actually manage the pension funds of every contributor, they now have the opportunity to ask questions concerning their future, which is their pension.
So, the experience has been worth it, and we hope that by the time we wind up the tour, the objectives would have been fully achieved.
Beyond documentation, what other pieces of advice would you give to retirees or prospective retirees, so that they can be successful in their retirement years?
I think this is personal advice to individual workers. As a worker myself, or before my retirement, one thing I always told those around me is this: remember, this work will not last forever. As you work, there is an exit point.
As you approach that exit point, you must look back and see what you have set aside that will help to tide you through life after retirement.
Every worker must ensure that he or she plans for retirement. It is very important.
And what does that mean? It is not wise to retire before you start thinking of starting a cassava farm at 60, after 35 years of service. What energy will you have to start farming at that age? Or is it at that stage that you want to start building a house or opening a provision store?
Plan for your retirement. Any little thing you can set aside will help.
That is what I always tell those under me.
I believe I have been able to mentor some people under me. Some have been able to build their individual houses, not big places, but two bedrooms and a parlour. They married early, had their children early, and by the time they get to 50 years, they may have finished training their children.
Because when a person retires and is still paying school fees, it becomes a burden, except in cases where one married late or has problems in marriage.
If everything goes well, a worker who gains employment at 30 years should be married by then. Have your children, train them early, so that by 50 or 55, before retirement, you have finished training them. Then you and your wife can enjoy while your children are already working and established.
So, the principle is to plan for your retirement. Don’t wait until a year before retirement to plan. It doesn’t work that way.
Look at the recent review by the Civil Service Commission, where people falsified their ages; some were caught. One of them even died when he was asked to go immediately. He collapsed and died. He was a Director in the Office of the Head of Service. When his name was removed from the payroll, no salary came that month.
Imagine you are told to leave on the 15th, and your name is removed from the salary voucher; it means that month, no salary will come. There is an immediate break.
Civil servants usually wait for the next salary to survive. So, if your salary is suddenly cut off, there will be no hope. That can kill someone, especially a person already battling high blood pressure. So, plan for retirement, that is what I tell civil servants.
