….Calls on Pencom, others to reflect on economic realities
From Atiku Sarki, Abuja
The petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has advocated for better welfare of the pensioners in the oil and gas industry.
According to the Association, ” it is making advocacy on these organisations over the gaps in pensioners’ remuneration and pension to enable them close the gaps to better welfare of the pensioners”.
In a one day summit organized by the Association recently in Abuja with the theme:”The Future of Pension in the Nigerian Oil and Gas Industry” aimed at addressing issues affecting Closed Pension Fund Administrators (CPFAs) and improving retirees welfare.
The summit which brought together critical stakeholders in the oil and gas sector, including the National Pension Commission, Pension Fund Custodians and Operators further aimed to discuss on fair pension management for workers and retirees in the country.
In his opening remarks, the President of PENGASSAN, Comrade (Engr.) Festus Osifo said the summit was organized to engaged PENCOM and other organizations in order to evaluate the challenges currently facing the Closed Pension Fund Administrators (CPFAS) and find best practices that will promote and ensure retirees benefits from the economic realities.
“The association decided to engage PENCOM and other organisations saddled with the responsibility of paying pension to retired workers to do so with fairness and bridge the gaps in order to ensure good welfare of pensioners in oil and gas sector.”Osifo said.
He observed that there was lucuna within the process of the fund. Tracing that the retirees who retired several years ago can not longer meet the market demands of the present economic.
Comrade Osifo noted that the 2024 Pension Reform Act, introduced the contributory pension scheme, but several oil and gas companies were exempted from the new system and operate what he described as”closed schemes”, where only employers contribute to employees’ retirement funds.
He said over time, some of the managements have been magnanimous to add little things to what pensioners were earning. Saying more need to be done to bridge the gap.
“We actually decided to take up this issue, an issue that is bothering our close pension fund administration in Nigeria.The reason is very clear. For those who didn’t really know, in 2004, we had the pension reform system in Nigeria and when that pension reform happened, we had a system whereby some companies started the pension fund administrators.
“So over time, in 2014, there was also a new legislation that came that now stops new employees from 2014 from joining the defined benefits.
“That means, even if you operate the defined benefits, the company like Chevron, the company like NSO, Settler, Total Energies, NNPC, DPRU, and all that, even when you operate that close pension fund system, so by 2014, there was a gap., So anybody that was employed into these organisations from 2014, could no longer join the defined benefits. You now need to be under the PFE.
“Over time, we have realized that there were some level of lacuna within the process, and within the system, that people that retired several years ago, under the defined benefits, their remuneration, or rather, their retirement benefit has somewhat been capped.
“Imagine people that have retired 1990, imagine people that have retired maybe 2001, even 2010, as recent as 2010. So when they retire at that time, they’ll be going home with what they think is okay in terms of the value of our currency.
“What, for example, we all know, what 200,000 Naira can buy for you in 2010, today, truly, it can no longer buy.” He noted.
The PENGASSAN President and who is also the President of Trade Union Congress (TUC) of Nigeria called on the National Pension Commission (PENCOM), and other oil major stakeholders including Total energies, Exxon Mobil, Chevron and the Nigeria National Petroleum Company Limited (NNPCL) among others to come up with mechanism and fair adjustment that will reflect the present economic realities to restore the confidence and dignity of the pensioners.
According to Comrade Osifo, “Pensioners were once union veterans who fought for the workers’ rights. It is now our duty to fight for their comfort”.
The PENGASSAN President while commending the PENCOM for maintaining its position in regulating the sector, he also believed that the Commission remain one of the most credible Regulatory Institutions in the country, and further appealed to the Commission to deepen its oversight and protect the interest of pensioners.
In her remarks, the Director General of PENCOM, Mrs. Omolola Oloworara who was represented by Mr. Abdulqadir Dalhatu , Head of Investment Supervision Department has confirmed that already the Pencom had introduced new supervisory mechanisms and frameworks to reinforce governance to ensure that funds mainly for contributors are well protected.
Mr. Dalhatu assured that Pencom will continue remain and maintain public confidence and trust in the pension management system.
He said the Commission will be reviewing the investment guidelines to meet with the global best practices and ensure the long- term safety of pension assets.
Also, in his keynote address, the Managing Director, Total energies, Mr. Benjami Okeke- Agedi who represented by the Company’s Chief Finance Officer, Mr. Wale Olusoji saw the important for the CPFAs to adopt technology, innovation and sustainable investment strategies to remain relevant in financial landscape.
“For CPFAS to thrive, they must integrate ESG reporting and invest in impactful asset classes such as infrastructure and green houses to support Nigeria’s energy transition goals”. He said.
Mr. Olusoji also called on the stakeholders in the Oil and Gas sector including the Unions to uphold strong governance and transparency in the pension ecosystem. Believing that sustainability of CPFAS depends on collective responsibility, sound regulation and innovation.
The one day summit also witnessed the presentation of an Award by the members of Labour Correspondents Association of Nigeria (LACAN) to the PENGASSAN President, Comrade (Engr.) Festus Osifo.
