From Joseph Amedu, Lokoja

Business Administration Expert, Professor Mathew Olasehinde Fashagba at the Federal University, Lokoja has stressed the need for a sustainable Pension reform scheme in Nigeria that would enhance the living standard of the retirees better than the old.

Fashagba stated this while delivering the 25th Inaugural Lecture of the University in Lokoja, with the Theme ‘Retirement Benefit Adequacy’: The Need to Reform Nigeria’s Pension Reform

He said that time has come for Nigeria to look inward for a good Pension System than the old capable of boosting the living conditions of retirees

The Business Administration Guru maintained that is of no use keeping a reform that cannot achieve its goal of taking good care of the retirees

According to him “A good Pension Scheme must be able to provide sustainable income for retirees, ensures that pensioners receive their benefits as at when due and establish uniform payments for all”

Fashagba recommended that “Early access to pension benefits must be reviewed probably from the 50 years in the current Act to not less than 60 years.

“There should be a guaranteed minimum pension for retirees which should be complemented by the government if need be through special legitimized funds created for that purpose.

“Government must provide funds to supplement pension benefits for retirees with little amount into the retirement savings account to ensure that no retiree suffers old age poverty.

“Pension benefit should be seen and accorded the same importance with employee’s wages and be given timely remittance. Government should be able to demonstrate willingness to bring to justice any defaulter of timely remittance.

“Good economic management is paramount to prevent old age poverty. It is the responsibility of the government to ensure stability of the nation’s currency.

“Corruption must be completely eliminated. You would recall that one of the major problems that led to the replacement of the old scheme was corruption. Corruption remains active threat to the success of the contributory pension scheme

“De-politicized the pension system in Nigeria. Computation of Pension, annuity, life insurance etc., require rigorous training not for every Harrison and Dickson on the street but for those with professional training for it. Hence political consideration should be down-played in constituting a pension management team. Undermining professional training and skills for political consideration is akin to a systematic designing of inevitable failure in the pension system.

“Government should enforce compliance on the private organization with more than 15 employees on the compulsory contributory pension scheme as provided by the 2014 Pension Reform Act and show willingness for both public and private organizations to ensure purchase of life insurance policy for all employees as provided in the scheme.

“There must be living wages for the workers if there will be retirement benefits that will preclude old age poverty. In either case, retirement benefit is a percentage of workers’ emoluments, hence if the wages cannot prevent poverty for workers, definitely,  pension that is a percentage of it will not prevent poverty at old age”

“When an Act is passed but fails to achieve its objectives, it becomes necessary to review it urgently.

“In the case of Nigeria’s Contributory Pension Scheme, the Act has not successfully provided adequate retirement benefits. This reality is undeniable”

In his welcome address, the Vice Chancellor of the Federal University, Lokoja, Professor Olayemi Akinwumi, said that Inaugural Lecture is an academic tradition and essential part of the university’s culture aimed at showcasing the guest lecturer’s knowledge in his discipline in course of his academic journey.

“It also engages the public on critical society issues for better understanding and accomplishments” the VC said.

He described pension as financial security for retirees to sustain their living conditions after retirement.

He congratulated Prof. Fashagba for living up to expectation in his academic discipline.