FG Proposes N536 Billion in 2020 Budget for Payment of Pension and Gratuities. Check here for Breakdown.

Federal Government has proposed a total of N536,717,450,121 for settlement of pensions, gratuities and retirement benefits of retired and serving workforce in the 2020 Appropriation Bill that President Muhammadu Buhari presented to the National Assembly last week.

It also allocated N16.567billion for ex- workers of the defunct Nigeria Airways and the sum of N2.3billion for entitlements of former presidents/heads of states and Vice Presidents/chief of general staff.

The breakdown of the Appropriation Bill showed that the Office of the Head of Civil Service of the Federation with respect to arrears of pension would gulp N48,897,287,441.

Under this, the unit allocation showed that gratuities amounted to N2,300,000,000. Payment of pension was allocated N467,287,441 while pension running cost estimated at N130,000,000.

Similarly, the sum of N217,593,565,984 proposed for military pensions and gratuities. A breakdown of the allocation to the military showed that pensions was estimated at N126,492,195,623; the sum of N17,917,600,447 was allocated to expected retirees; the sum of N23,191,554,357 to death benefits; administrative charges/running costs got N150,000,000; medical retirees took N1,258,074,576; arrears of 2017 to 2018 pensions has N43,800,692,518 and arrears of 2017 to 2018 gratuity was allocated N4,782,448,463.

Another allocation with respect to military retirees involved National Health Insurance Scheme(NHIS) which got a total of N10,478,000,762.

For Police pensions and gratuities, the sum of N7,408,000,000 was proposed in the 2020 Appropriation Bill. Under this, pensions took N7,308,000,000 while pension running cost was projected to cost N100,000,000.

With respect to Customs, Immigrations and Prison Pension Office, N8,311,000,000 was proposed, while it was expected that out of the sum, pensions would receive N8,211,000,000 and pension running cost was assigned N100,000,000.

The universities pensions including arrears was projected to cost N13,629,524,126.

The parastatals pensions and railway pensions was assigned N26,756,754,031.

The Department of State Security, was allocated N13,160,158718 and under it, pensions including arrears was estimated to take N9,007,377,311, while gratuity was allocated N3,886,521,784, just as death benefits was expected to gulp N266,259,623.

The Nigerian Intelligence Agency got N4,365,518,550, while the unit allocations showed that pensions/defendants’ benefits got N4,265,518,550, while the pension running cost was projected to cost N100,000,000.