TheHILL | NEWS | DECEMBER 17.
The Nigeria Governors’ Forum (NGF) has assured that defaulting States will soon clear all outstanding pension liabilities after the removal of fuel subsidy in 2022.
The governors’ forum said this at its 36th teleconference meeting yesterday.
However, the good news is coming a month after distraught children of dead and retired primary school teachers in Akwa Ibom, took to the streets of Uyo, the State capital, lamenting that several of their parents died in squalor, while those alive have suffered different ailments without remedy as the state government has failed to pay their entitlements for many years running into N28 billion.
Joined by the next-of-kin of the dead, the protesters had last month blocked the IBB Way in Uyo, lamenting that years of non-payment of pensions, gratuities and other entitlements including non-refund of 7.5 per cent of their compulsory pension contribution by the state government have led to the death of hundreds of the retirees.
TheHILL can authoritatively report that Akwa Ibom is not the only State that owes her pensioners.
A recent BudgIT nationwide survey revealed that many states have defaulted in the payments of pensions and gratuities. The survey which gave Lagos and Rivers a clean slate, noted that, the two States have been consistent in the payment of workers’ remuneration and pensioners’ entitlements.
In a communique released yesterday after the NGF meeting, Kayode Fayemi, chairman of NGF and governor of Ekiti, said the governors have resolved to include settlement of all outstanding pension obligations as part of the social compact with citizens for the removal of fuel subsidy.
Fayemi further affirmed governors’ support for the federal government’s transport palliative scheme.
“On the strategy to build a sustainable Contributory Pension Scheme (CPS) for State Governments that will also be capable of clearing outstanding pension liabilities, members listened to a presentation by the Chief Executive of AVA Capital, Mr Kayode Falasinnu, and resolved that the settlement of all outstanding pension obligations should be included as part of the social compact with citizens for the removal of fuel subsidies,” the communique reads.
“With respect to the required legal and institutional changes required to facilitate a successful CPS transition in all States, State Commissioners of Finance will be mandated to ensure that States meet the guidelines for the implementation of Contributory Pension Schemes by State Governments, including the enactment of a pension law, the establishment of a pension board and the adoption of a transition framework for each State.”
The forum also said it would review the ongoing move by the federal government to privatize 10 power plants located across the country.
It described the power plants as “critical national assets”.
It said the 36 state governments currently hold 53 percent equity while the FG holds 47 percent equity in the ten power plants.
“On the proposed privatization of the 10 generating plants located across the country under the National Integrated Power Projects (NIPPs), members received a detailed presentation by the Director-General of the Bureau of Public Enterprises, Mr. Alex A. Okoh, and resolved to review and communicate through their board representatives, their assessment and position on the privatization of what they consider critical national assets,” the communique adds.
“States currently own a total of 53 per cent equity in NIPPs while the Federal Government owns a 47% stake.
“On the National Social Register and the Rapid Response Register as critical tools for rolling out cash transfer programs, members received a presentation from the National Coordinator of the National Social Safety Nets Coordinating Office, Federal Ministry of Humanitarian Affairs, Disaster Management and Social Development, Mr. Iorwa Apera.”
According to the communique as obtained by our source; VANGUARD, the governors also listened to Shubham Chaudhuri, World Bank’s country director for Nigeria, on the rollout of a World Bank-financed $800 million facility designed to fund a large-scale conditional cash transfer (CCT) program in the country.
The forum, thereafter, decided that each state governor will establish and chair a steering committee to oversee the conditional cash transfer (CCT) initiative.
