Update on ₦2 Billion Monthly Commitment by Lagos State Government to defray Outstanding Accrued Rights of Retirees as at December 2022
The National Pension Commission (PenCom) in its 4th quarter 2022 report has provided an update on the ₦2 Billion monthly commitment by Lagos State Government to pay off all Outstanding Accrued Rights of retirees in the State.
PenCom said that Lagos State Government has consistently failed to honour the N2 billion monthly commitment to clear the accrued rights of its retirees. PenCom said as at the end of the 4th Quarter of 2022, there was no record of the State fulfilling its monthly commitment of remitting ₦2 billion for the months of October, November and December 2022. PenCom further said, only a total sum of N7.83 billion was so far redeemed as against the expected sum of N26 billion for December 2021 to December 2022, this therefore left a cumulative shortfall of N18.17 billion that was yet to be redeemed as at the end of December 2022.
Lagos States Government has however rebutted the fact that there is no record of the State fulfilling its monthly commitment of remitting ₦2 billion for the months of October, November and December 2022, saying that N1.062bn was paid to 288 retirees in October 2022 while N2.54bn was paid to 754 retirees in December 2022.
We call on National Pension Commission (PenCom) and Lagos State government to reconcile their positions for the sake of retirees.
PenCom had earlier disclosed that, sequel to the inability of Lagos State Government to meet its N2 billion monthly commitment undertaken to clear its retirees accrued rights, it engaged Lagos State government and the State revealed that it unilaterally reviewed the monthly payment downwards to N1.5 billion from the agreed sum of N2 billion, but PenCom subsequently took up the issue with Lagos State Government, requesting that the State must abide by its ₦2 Billion Monthly commitment.
PensionNigeria also tracks Lagos State Retirement Bond Certificate Presentation Ceremony and we discovered that from December 2021 to December 2022, Lagos State paid approximately N12.90 billion, making a payment higher than N2 billion only in December 2022. The total payment made by Lagos State during the period is N13.1 billion less than the expected N26 billion that Lagos State is expected to pay for December 2021 to December 2022 based on the ₦2 Billion monthly commitment to defray outstanding accrued rights of retirees in the state.
We call on Lagos State government to comply with its ₦2 Billion monthly commitment to defray outstanding accrued rights of retirees in the State.
Lagos State Retirement Bond Certificate Presentation Ceremony from December 2021 to December 2022
| Bond Ceremony | Est. Month/Year | Amount in Billion | No. of Retirees |
| 90th | Dec-21 | 1.50 | 421 |
| 91st | Jan-22 | 1.04 | 222 |
| 92nd | Mar-22 | 1.52 | 515 |
| 93rd | Apr-22 | 1.13 | 438 |
| 94th | May-22 | 1.50 | 482 |
| 95th | Jun-22 | 1.50 | 487 |
| 96th | Jul-22 | 1.11 | 295 |
| 97th | Oct-22 | 1.06 | 288 |
| 98th | Dec-22 | 2.54 | 754 |
| Total | 12.90 | 3902 |
It is necessary to note that, our tracking also reveals that as at 31 December 2022, Lagos State government had paid around N125 billion since the inception of the Contributory Pension Scheme (CPS) in 2004 and the State had paid around N47 billion into the Retirement Savings Accounts (RSAs) of its retirees since the advent of the Sanwo-Olu administration in 2019.
BUT, Lagos State still has outstanding accrued rights, around July 2022, Lagos State disclosed that, no fewer than 10,000 retirees were been owed N10bn outstanding accrued rights and Lagos State Government promised to clear the outstanding before May 2023. Lagos State also disclosed then that with the amount released in June 2022, it had paid pension entitlements to retirees upto year 2020 and would now proceed to start paying retirees for the year 2021, from July 2022. Based on the amount paid from July 2022 to date, it is certain that the state still has outstanding accrued rights and it is very unlikely that Lagos State can clear all outstanding before May 2023.
Note; Notwithstanding the above, Lagos State Government is one of the best performing states under the Contributory Pension Scheme.
We call on Lagos State government to comply with its ₦2 Billion monthly commitment to defray outstanding accrued rights of retirees in the State.
Check out
Status of Implementation of Contributory Pension Scheme in States
Lagos State Retirement Bond Certificate Presentation Ceremony
Lagos State Pension News
Check below for PensionNigeria breakdown of all the important aspects of the PenCom 4th Quarter 2022 Report
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DONT MISS our 4th Quarter 2022 Report Series
Update on RSA Transfer System (RTS) 4th Quarter 2022
List of Organisations Issued Compliance Certificates in the Year 2022
Total RSA Registration as at 31 December 2022
Status of Contributory Pension Assets as at 31 December 2022
Micro Pension Registrations per PFA & Fastest Growing PFAs as at 31 December 2022
Status of Implementation of CPS in States as at 31 December 2022
Director General’s Remarks on PenCom 4th Quarter 2022 Report
Analysis of Pension Operating Environment 4th Quarter 2022
Appointment & Resignation of Pension Operators’ Board Members and Top Management Q4 2022
Recovery Agents recover ₦24.15 billion from Defaulting Employers as PenCom takes 34 Employers to Court
Update on NSITF & Refund of Pension Contribution to Military & SSS Q4 2022
Update on ₦2 Billion Monthly Commitment by Lagos State Govt to defray Outstanding Accrued Rights of Retirees as at Dec 2022
Ekiti State appoints Veritas PFA to manage Retirement Benefit Bond Redemption Fund
Rivers State extends its transition period to Contributory Pension Scheme
PenCom responds to query on refund of Pension Contributions to Zamfara State
Micro Pension Contributions received per PFA Q4 2022
Update on the Micro Pension Plan Q4 2022
RSA Registrations per PFA for 4th Quarter 2022
RSA Registration Age and Gender Breakdown for Q4 2022
PenCom approved over N1.72 Trillion for PFAs to pay RSA Holders as at Q4 2022
Also Check out
Performance of all PFAs in Nigeria for Full Year 2022
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