An inevitable truth for every man is that we are all hurtling toward old age. Yet, while we labour today, sacrificing our youth and vitality to build a nation, a silent predator hides in the shadows and which is a pension system that restrains the dignity of our elderly and lines the pockets of administrators at the expense of vulnerable retirees.
This is not a plea but a battle cry for Nigerians to rise now and dismantle a system that robs the aged of their financial freedom and condemns them to poverty after decades of service.
For years, pension administrators have positioned themselves as custodians of workers’ futures. But let us call this what it is: a grand deception.
The current Contributory Pension Scheme (CPS), designed to safeguard retirees, has morphed into a machinery of exploitation. Retirees are forced to surrender control of their life savings to these entities, only to receive pittances that mock their years of labour.
Consider the cruel mathematics: A retiree like Mallam Karfi, who saved ₦20 million over a lifetime, is permitted to access just 50% of his savings (₦10 million) upon retirement. The remaining ₦10 million is doled out in monthly crumbs of ₦55,555 over 15 years. By the time he reaches 75, the payments cease, leaving him stranded in his twilight years. But here’s the bitter irony: Pension administrators invest these withheld funds in high-yield instruments like treasury bills, bonds, and equities, earning returns as high as 15% annually.
Meanwhile, the retiree, the rightful owner of the capital, is handed scraps. The recent move by the Nigerian Senate to amend the Pension Reform Act, allowing retirees to access up to 75% of their savings, is a step forward —but it is not enough. Why must retirees beg for what is rightfully theirs? Why must they be infantilised, denied the autonomy to decide how to invest or spend their hard-earned savings?
Imagine this alternative reality: If Mallam Sule could withdraw his full ₦20 million, he could invest it in low-risk government treasury bills at 15% interest. This would earn him ₦3 million annually—₦246,575 monthly—without touching his principal.
Compare this to the paltry ₦55,555 he currently receives. The difference is not just numerical; it is the difference between dignity and destitution, between security and despair.
Yet, under the current system, pension administrators profit handsomely from retirees’ capital. They harvest billions in returns while offering retirees peanuts. This is not just unfair; it is a moral crime.
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In a System Built on Exploitation: Who Benefits? Is the question? Let us be blunt: The current pension framework is a goldmine for administrators and a death sentence for retirees. Consider the arithmetic of exploitation:
₦20 million at 15% annual interest= ₦3 million per year (₦246,575
monthly) for the retiree.
Current system: Retiree gets ₦55,555 monthly, while administrators pocket the difference.
Where is the justice? Why should intermediaries grow fat on the sweat of workers while the elderly scrape by? This is not a pension scheme; It is legalised robbery.
Behind these numbers are human beings. Retirees who once built roads, taught children, healed the sick, and served the nation now face humiliation. Many cannot afford medications, rent, or even food. Others are forced to beg or depend on relatives, a crushing blow to their pride. Is this how we reward a lifetime of service? A Nation Betraying Its Elders showed that it never valued them when they were in active service to their father’s land.
Worse, life expectancy in Nigeria is 72 years, yet the pension system assumes retirees will die at 75. What happens to those who outlive this actuarial guess? They are abandoned. This is not just flawed policy; it is a systematic denial of humanity.
The time to act is now: A rallying cry for all Nigerians.
