The late releases of $74 million to pay retirees of defunct Nigeria Airways
after 15 years has eroded the value of the money.
after 15 years has eroded the value of the money.
Stakeholders have expressed diverse reactions to the late release of the money.
The experts posited that the inflation
rate in 2018 is higher than that of 2003 when their pension was supposed
to have been paid.
rate in 2018 is higher than that of 2003 when their pension was supposed
to have been paid.
The Minister of Finance , Mrs Zainab
Ahmed, on Sept. 24 announced that the Federal government had approved
N22.68 billion for the payment of the retirees
Ahmed, on Sept. 24 announced that the Federal government had approved
N22.68 billion for the payment of the retirees
Ahmed announced that President Muhammadu Buhari approved the fund as part pension payment for the retirees.
She explained that the total retirement
benefits due to the ex-workers of the former national carrier, based on
their submission, amounted to $255 million.
benefits due to the ex-workers of the former national carrier, based on
their submission, amounted to $255 million.
The airline which started operations in
August 1958, got liquidated by former President Olusegun Obasanjo’s
administration in May 2003 with the workers unpaid.
August 1958, got liquidated by former President Olusegun Obasanjo’s
administration in May 2003 with the workers unpaid.
“The retirees according to the pension
administration in the country fell under Defined Benefit Scheme (DBS)
and managed by Pension Transitional Arrangement Directorate (PTAD)
administration in the country fell under Defined Benefit Scheme (DBS)
and managed by Pension Transitional Arrangement Directorate (PTAD)
A former director, Budgetary Department,
Central Bank of Nigeria (CBN), Dr Titus Okunronmu, said the inflation
rate was 2.28 per cent in 2003 when the National Carrier got liquidated.
Central Bank of Nigeria (CBN), Dr Titus Okunronmu, said the inflation
rate was 2.28 per cent in 2003 when the National Carrier got liquidated.
He said the inflation rose to 2.66 per cent in 2004, 3.39 per cent in 2005, till it hits 11.23 per cent in Aug. 2018.
“2.66 to 11.23 per cent is almost six per
cent increase, meaning the prices of goods and commodities’ shot up 6
times, the fund has lost its real value.
cent increase, meaning the prices of goods and commodities’ shot up 6
times, the fund has lost its real value.
“The money cannot buy the same basket of
goods it could buy in 2003 when they retired , the purchasing power has
dropped .” he said.
goods it could buy in 2003 when they retired , the purchasing power has
dropped .” he said.
However, a request to the federal
government to pay the accrued benefits according to inflation rate would
be injurious, as the government is in crisis itself.
government to pay the accrued benefits according to inflation rate would
be injurious, as the government is in crisis itself.
“In the 2018 budget, the government budgeted a high deficit, so inflation is inevitable.
” Also, if a country is financing a deficit with money borrowed from banking sector it would be more inflationary.” he stressed
Okunronmu, however, commended President Mohammadu Buhari for releasing the benefits to the retirees of defunct National Carrier.
Comrade Joseph Dele, Chairman, Nigeria
Union o Federal Pensioners (NFP),l Lagos branch, posited that the
payment is a welcome development.
Union o Federal Pensioners (NFP),l Lagos branch, posited that the
payment is a welcome development.
He said ” Though, NUP branch felt bad that the Federal government was just releasing the money after 15 years.
He said some of the pensioners would have died.
“I also believe that it is because politics is around the corner the Federal government is settling its debts gradually.”
Comrade Rasaq Ogbe, Chairman, Federal
Airport Authority of Nigeria (FAAN) retirees, however, commended the
presidency on pension benefits though struggle to retrieve the arrears
kicked off long time ago.
Airport Authority of Nigeria (FAAN) retirees, however, commended the
presidency on pension benefits though struggle to retrieve the arrears
kicked off long time ago.
“The payment will elongate the retirees’ life, no matter how small .” he said.
The chairman of NAL retirees, Comrade Sam
Nzene, commenting on the issue said the retirees are happy that the
Federal government gave respite, though, after 15 years.
Nzene, commenting on the issue said the retirees are happy that the
Federal government gave respite, though, after 15 years.
“When the money is paid, we will use it
to put our lives together, however, we are not totally happy that the
money was over delayed and incomplete. ” he said.
to put our lives together, however, we are not totally happy that the
money was over delayed and incomplete. ” he said.
Nzene explained that the total pension benefits due to retirees of
NAL is N78 billion.
NAL is N78 billion.
“However, N45 billion was approved by the
Federal Executive Council (FEC), in September 2017, now President
approved N22.66 billion out of N45 billion approved by FEC.
Federal Executive Council (FEC), in September 2017, now President
approved N22.66 billion out of N45 billion approved by FEC.
“We appealed to the President to release the pending benefits for us before the 2019 general elections.”
he said
he said
