Professor Urges Reform in Nigeria’s Pension System to Combat Old-Age Poverty
A call to action has been made by Professor Mathew Fashagba, a specialist in Business Administration at the Federal University Lokoja (FUL), urging the Federal Government to ensure that no retiree in the country suffers from old-age poverty. This plea was made during his inaugural lecture titled “Retirement Benefits Adequacy: The Need to Reform Nigeria’s Pension System,” held at the FUL Adankolo Campus on Thursday.
In his address, Prof. Fashagba emphasized the need for the government to provide supplementary funds to enhance retirees’ pension benefits, thereby safeguarding them against poverty and hardship after retirement. “If the government can provide retirees with a small amount into their retirement savings accounts, it will ensure that no retiree suffers old-age poverty, making the country a better place,” he stated.
He urged that pension benefits should be prioritized and treated with the same importance as employees’ wages, along with a call for the timely remittance of these benefits. “The government should also demonstrate a willingness to bring to justice any defaulter of timely remittance of pensions to retirees,” he added.
Highlighting the importance of good economic management, Prof. Fashagba remarked on the necessity of maintaining currency stability for economic transformation in the country. He also pointed out the urgent need to eliminate corruption, which he stated poses a significant threat to the success of the contributory pension scheme.
Earlier in the session, Prof. Olayemi Akinwunmi, the Vice-Chancellor of FUL, described the theme of the lecture as “timely and pertinent,” especially considering the complexities involved in pension administration in Nigeria. He acknowledged that pensions play a crucial role in providing financial security for retirees, allowing them to maintain a decent standard of living after their years of service.
“The adequacy of retirement benefits remains a subject of concern, with many pensioners struggling to access their entitlements due to systemic inefficiencies and policy gaps,” Akinwunmi stated, underscoring the urgency for reform in the current pension system.