By Oluwabukunmi
The Nigeria Union of Pensioners (NUP) has lamented the worsening economic conditions facing retirees across the country, revealing that many pensioners, especially at the state level, still earn as little as ₦5,000 per month despite the rising cost of living.
Speaking with Saturday PUNCH, the General Secretary of the Union, Actor Zal, accused several state governments of neglecting their retired workers, disclosing that only 13 states currently pay pensions and gratuities regularly.
“Many state governments do not treat their pensioners well, unlike federal retirees who are better off because their minimum pension is ₦32,000. Some of the state pensioners receive as low as ₦5,000 monthly. What can ₦5,000 do for someone in our present economic condition?” Zal queried.
He described the situation as “heartbreaking,” noting that the cost of living had skyrocketed while most pensioners could no longer afford basic necessities.
“The cost of living is very high, and things are very expensive. The pension cannot sustain them. As far as our union is concerned, we will always cry out for more consideration from the government,” he said.
Zal also criticised the Federal Government’s pension-backed loan scheme, arguing that the initiative — launched through the Nigerian Consumer Credit Corporation in partnership with Leadway Trustees and Optimus Bank — was ill-conceived and would worsen retirees’ burdens rather than relieve them.
The scheme, which offers loans starting from ₦50,000 to retirees based on their pension income, was designed to empower pensioners financially. But Zal faulted the approach, questioning how retirees would repay loans from their already meagre stipends.
“As pensioners, where will they get money to repay a loan? Is the government going to recover the loan from the little pension that pensioners earn? The idea of the loan scheme is like fetching water with a basket. It is not the solution to pensioners’ plights; in fact, it may compound issues,” he said.
The NUP renewed its call for the government to implement a ₦60,000 minimum pension to cushion the effects of inflation and provide health insurance, subsidised transportation, and food support for retirees.
According to Zal, the soaring prices of goods and services have made it nearly impossible for many pensioners to survive, with some resorting to begging or relying on family members to meet their basic needs.
He further urged the government to review the contributory pension scheme, stressing that its current implementation leaves many retirees with paltry benefits.
“The contributory pension scheme is a good system, but the government must make adjustments to improve what pensioners are earning. Any increase in minimum wage or minimum pension should also reflect in both the old and contributory schemes so that all pensioners can earn a reasonable amount,” Zal advised.
The NUP’s latest outcry adds to growing pressure on both federal and state governments to address pension arrears, reform the system, and protect the welfare of senior citizens who spent their productive years in public service.
