N3.5trn required annually to exit police from contributory pension – Operators

The Pension Fund Operators of Nigeria (PenOp) have stated that for the federal government to exit the Nigerian Police Force (NPF) from the Contributory Pension Scheme (CPS), a minimum of N3.5 trillion appropriation will be required. Chief Executive Officer of PenOp, Oguche Agudah  who stated this on Tuesday at a public hearing in the senate […]

The Pension Fund Operators of Nigeria (PenOp) have stated that for the federal government to exit the Nigerian Police Force (NPF) from the Contributory Pension Scheme (CPS), a minimum of N3.5 trillion appropriation will be required.

Chief Executive Officer of PenOp, Oguche Agudah  who stated this on Tuesday at a public hearing in the senate on the Bill to Exit the Police from Contributory pension said the move is not sustainable especially with the current fiscal deficit. 

The Bill sponsored by Senator Binos Dauda Yaroe representing Adamawa South is tagged “Bill for an Act to Establish Police Pension Board, Bill, 2024 SB.294,”

“About N3.5 trillion of annual budget will be required every year to exit the Police from Contributory pension scheme which is not sustainable because if you budget N3.5 trillion for just 400,000 people put of the million of workers, what will happen to others?

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“In the 2025 budget of N47.9 trillion, the N3.5 trillion is not event there. Therefore from the presentations we have seen today at the Public hearing, it is obvious that the Contributory Pension Scheme is not the problem of the Nigerian Police but the welfare

“Therefore, what we keep advocating as Operators is that there should be an increase in wages because if your salary is small, your pension too will be small and exiting will not solve the problem and our key aim is to ensure that all pensions are paid in time,” he further stated.

In the same vein, the acting Director General of the National Pension Commission, Omolola Oloworaran noted that the Commission as a regulator is working to ensure that pension administration is sustainable and adequate 

Represented by Dr. Farouk Aminu, the Commissioner Administration at PenCom,  she added that “The Federal government has set up a committee consisting of the minsiter of finance, accountant general and Auditor general of the federation, head of service among other heads of agencies to identify the issues of pension liabilities and accrued rights,”

Earlier in his submission, the Inspector General of Police represented by DIG Bala Ciroma said the Force is supporting the exit of the Police from CPS  to ensure effective administration of pensions for serving retired officers.