The current administration in Delta State under the leadership of Governor Ifeanyi Okowa said that it inherited N100 billion in unpaid pensions under the Contributory Pension Scheme (CPS).
Okowa said this at the 8th Synod of the Church of Nigeria (Anglican Communion), Ughelli Diocese, Vanguard reports.
He stated that there are problems affecting the contributory scheme and that it would take a while for the issues to be effectively addressed.
The governor added that only eight states were participatory in the scheme out of the 26 states – of the 36 states in the country – that supported the scheme.
He said, “We have two types of pensions, the old pension scheme and the contributory pension scheme.
“Those on the old pension scheme are paid regularly as we pay salaries, but there is a big challenge with those on the contributory pension scheme.
READ ALSO: ANALYSIS: Food Inflation Pushing Millions Of Nigerians Into Hunger, Poverty
“It is a good scheme but it will take a very long time to solve the issues associated with it.
“For instance, if somebody had done 15 years before joining the contributory pension scheme, it provides that the government must contribute for those years and it runs into billions of naira.
“Out of 36 states in the country, only 26 states embraced the scheme, but as at today, only eight states are contributing to the scheme.
“When I assumed office in 2015, what Delta was owing was over N100 billion.
“The state government entered into the scheme in 2007 and up to 2015 no money was paid for past services amounting to over N100 billion.
“I have paid a few billions but it is a far cry from the over N100 billion we are owing.
“It is something we are committed to and I will continue to do the best that we can and by the time we are able to pay the accruals it will no longer be a burden to subsequent governments.”
