“…repeated appeals for the Bank to submit to standard procedures and rule of law, by reversing its wrong actions, have proved abortive.”
*Photo: President Bola Tinubu*
URGENT APPEAL ON PENSION MALADMINISTRATION AT THE CENTRAL BANK OF NIGERIA
Notional Promotion
Some years ago, the Central Bank of Nigeria stalled promotions of employees who were otherwise eligible. In the 2002 and 2004 early-exit exercises, the Bank undertook to advance qualified staff to the next grade, and many retired in reliance on that assurance. Implementation was delayed until 2019, with arrears backdated only to July 2015, rather than to the respective retirement dates. By contrast, the Bank fully honoured the same commitment in subsequent early-exit programmes, thereby placing earlier retirees at a marked disadvantage.
The affected pensioners have endured financial hardship, struggled to meet medical and educational obligations, and are left to question the basis of their differential treatment. It defies reason that an institution that has breached a binding commitment and the trust reposed in it would be proclaiming profits without first discharging its outstanding obligations.
Bridging of Gap
In 2011, following the 2010 judgment of the Supreme Court of Nigeria, the Central Bank of Nigeria, purporting to comply, paid some of its pensioners using rates aligned with increases earlier granted to serving counterparts of pensioners in other establishments, rather than with those applicable to the Bank’s own serving counterparts.
The outcome was anomalous: pensioners who retired before May 2000 and after December 2006 began to earn more than those who retired in the intervening period. The Bank declined to reverse or rectify this anomaly and allowed it to persist until July 2015, when it effected corrections but refused to pay arrears for the four years of underpayment—an omission inconsistent with standard financial practice and the Bank’s role as apex banking regulator.
2011 Early-Exit Pensions
In the 2011 early-exit programme (initiated in 2009), gratuities for the affected cohorts were correctly computed on the basis of their terminal emoluments, but their pensions were pegged to 2009 emoluments, thereby nullifying intervening promotions.
Settlement Agreement
In January 2025, while contempt proceedings and an appeal at the instance of the Central Bank of Nigeria were pending, the Bank issued a “Settlement Agreement” asserting compliance and conditioning pension increases on pensioners’ admission of such compliance; those who refused were excluded.
In all instances, repeated appeals for the Bank to submit to standard procedures and rule of law, by reversing its wrong actions, have proved abortive.
Appeal to Authorities
We acknowledge Governor Olayemi Michael Cardoso’s reforms in forex stability, banking consolidation, and public confidence, yet, the pension administration malaise remains unresolved. We also appreciate the intervention of Attorney General Lateef Olasunkanmi Fagbemi thus far, and pray that he goes the full mile.
We respectfully appeal to President Bola Ahmed Tinubu, GCFR, to urgently prevail upon the CBN Governor to resolve these longstanding pension injustices and restore the rights, dignity, and financial security of affected retirees.
*Affected Pensioners