The House of Representatives has given the Nigerian National Petroleum Corporation Pension Fund Limited a three month deadline to commence payment of all outstanding pensions and arrears owed to its retirees.
The House also directed its Committee on Pensions to investigate the operations of the NNPC Pension Fund Limited, including its financial records, investment portfolios and asset management practices, and to recommend appropriate sanctions where violations are established.
The resolutions followed the adoption of amendments to a motion sponsored by Muhammad Shehu, who represents Fagge Federal Constituency in Kano State.
Presenting the motion, Shehu drew attention to what he described as the prolonged hardship faced by retirees and contributors under the scheme. He accused the management of the Fund of inappropriate operations, injustice, financial mismanagement, non payment of entitlements and gross negligence.
He explained that the NNPC Pension Fund Limited was originally established in 1983 as a Trust Fund to manage the pension assets of the Nigerian National Petroleum Corporation and the Nigerian Upstream Petroleum Regulatory Commission. The fund was reconstituted in 1986 as the Incorporated Trustees of the NNPC Pension Fund and later transformed into NNPC Pension Fund Limited following the enactment of the Pension Reform Act 2014.
Shehu reminded lawmakers that the Pension Reform Act 2014 was enacted to establish uniform rules, regulations and standards for the administration and payment of retirement benefits across the public service of the federation. He noted that retirement savings accounts remain the primary financial lifeline for retirees after leaving active service.
Despite this, he said many NNPC retirees are unable to access their retirement benefits even after meeting all statutory requirements under the contributory pension scheme. According to him, this has resulted in widespread hardship, inequality and disillusionment among affected retirees.
The lawmaker further alleged that the management of the NNPC Pension Fund Limited has repeatedly failed to comply with court orders directing the payment of harmonised pensions. He said this has forced elderly retirees to resort to repeated protests in pursuit of their entitlements.
He also accused the Fund of violating Section 50(1)(a) of the Pension Reform Act 2014 and the approved conditions of the scheme, which require pension funds to be fully funded at all times and mandate that any funding shortfall must be remedied within 90 days.
Shehu said years of poor financial management, lack of transparency and disregard for regulatory standards have eroded confidence in the pension system. He added that many retirees, after decades of service to the country, are now facing serious health and financial challenges due to what he described as the inaction and negligence of those responsible for managing their welfare.
He argued that the current structure of the NNPC Pension Fund Limited falls short of international best practices and called on the Federal Government to adopt globally accepted pension fund frameworks that promote sustainable investment, transparency and accountability in pension management.
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