By Lukman Olabiyi
In Lagos State, Nigeria’s vibrant economic hub, the swift pace of development often casts a shadow over the city’s retirees.
These individuals, who have spent decades serving the public, frequently find themselves forgotten amidst the city’s rapid growth.
But now, a transformative initiative by Governor Babajide Sanwo-Olu is rewriting their narrative, bringing unprecedented relief and recognition to them. With the governor’s new initiative on pension administration, these individuals, having devoted decades of their lives to public service, now have a new story to tell, a story totally different from the past story on retirement benefit, a story of pride of serving the state, contributing to its growth and being rewarded diligently.
According to them, Thursday, July 4, 2024, has been etched in their memories as a day of monumental change.
On this day, Governor Sanwo-Olu achieved a historic milestone by clearing all outstanding pension arrears, positioning Lagos as the first state in Nigeria to accomplish such a feat.
At the 105th Retirement Benefit Bond Certificate Presentation ceremony held in Oregun, Lagos, Governor Sanwo-Olu handed out pension bond certificates worth N4.5 billion to 2,000 retirees.
This significant gesture marked the end of prolonged waits for pension benefits and ushered in a new era of financial security for the state’s former public servants. With the clearance of pension liabilities, the state has transitioned from managing a backlog of payments to a Pay-As-You-Go system. Under this new model, retirees will receive their full pension benefits and gratuity immediately upon retirement, eliminating the long waits previously endured. In addition to this financial overhaul, Governor Sanwo-Olu also introduced a special health insurance scheme for all retirees who served the state. This initiative, designed to honour their years of service, provides comprehensive healthcare alongside financial benefits, ensuring retirees’ well-being.
The ceremony, attended by the Deputy Governor, Dr. Obafemi Hamzat, state executives, agency heads, and jubilant retirees, was a celebration of this significant achievement. Governor Sanwo-Olu, moved by the sight of pensioners singing, dancing, and expressing their gratitude, emphasised the importance of the new system.
“Lagos was the first state to adopt the Contributory Pension Scheme in 2004 and has since paid N141.2 billion to 35,191 retirees,” the governor stated.
“Under my administration alone, N59.7 billion has been paid to 17,039 retirees, reinforcing Lagos State’s top performance in pension payments.” Presenting bond certificates worth N4.5 billion to 2,000 retirees, Governor Sanwo-Olu declared:
“From now on, all retirees of the state government will be paid as they retire, provided all procedures and approvals have been completed before retirement,” he added Alongside the financial reforms, the governor launched a Health Insurance Scheme for retirees through the Lagos State Health Management Agency. This scheme ensures that retirees have access to a wide range of medical services, underscoring the state’s commitment to their well-being.
In his address, Head of Service Mr. Olabode Agoro, represented by Mrs. Sunkanmi Oyegbola, reaffirmed the administration’s dedication to clearing all pension arrears.
He urged officers nearing retirement to submit their notices promptly for early processing and called on Pension Fund Administrators to expedite disbursements.
Commissioner for Establishment and Training, Mr. Afolabi Ayantayo, represented by Mrs. Olubukola Abidakun, highlighted the Pay-As-You-Go template as a sustainable model for the country’s pension systems.
This shift, he noted, rebuilds trust in the state’s pension system and promises a secure retirement for public servants. LASPEC Director-General Mr. Babalola Obilana praised the clearing of all pension backlogs as a significant achievement reflecting Governor Sanwo-Olu’s commitment to retirees. He advised retirees to carefully choose between Programmed Withdrawal and Annuity and to be wary of fraudsters.
Speaking on behalf of the retirees, Mrs. Rachael Thompson expressed deep gratitude to Governor Sanwo-Olu for ensuring the prompt payment of their gratuities. She thanked the administration for its unwavering efforts and prayed for the governor and his team’s continued success.