Letter from Africa: The looting of Nigeria's pension funds

Ex-civil servants protesting in Abuja, Nigeria (October 2012)

In our series of letters from African journalists, Sola Odunfa in Lagos writes that many elderly Nigerians are battling to survive after their pensions were stolen by corrupt officials.

The compulsory retirement age for public officials in Nigeria is 65 years, after which one is expected to settle down to an easy life of contentment and leisure.

But don't you believe it.

The reality is that you may spend your old age running after government contracts if you have the wherewithal, or tending chickens in your backyard to eke out a living.

It is not that the pension cannot sustain you. Far from it.

Start Quote

They stepped out of the public service into the embrace of discomfort and hunger brought on them by former colleagues who had stripped the treasury bare”

End Quote

The state pension is big enough to encourage you to seek rejuvenation, even by taking a new wife and starting life all over.

After all, you could be as young as 60, the age for voluntary retirement.

Nigeria has two classes of government pensioners. One consists of those who took insurance for their old age by either stealing as much as they could while in the public service, or collecting as many bribes as they were privileged to do by their offices. Members of this class have no need of their pensions.

The second class is made up of the honest, self-righteous ex-public official who would not touch one kobo of government money beyond their salaries and allowances and to whom bribe-taking was contrary to their religious beliefs and family values.

Investigations suspended

This second class had calculated their pensions and concluded that they and their spouse would live in comfort until death.

But they stepped out of the public service into the embrace of discomfort and hunger brought on them by former colleagues who had stripped the treasury bare.

A Nigerian policeman holds a teargas launcher in Lagos on 1 June 2012 Police offices cannot be sure of a comfortable retirement

In the past three years, several official investigations into Nigeria's pension funds have revealed theft on an unimaginable scale.

Newspapers reports of the hearings convey the impression that the funds were stored in open rooms to which officials had unimpeded access. Apparently, officials were free to walk in and loot as much as they could.

Start Quote

Government pensioners, wherever I meet them, cut a sorry image”

End Quote

A junior clerk allegedly had 12 million naira (about $75,000; £49,000) in his bank account. A deputy director in a ministry allegedly had 500 million naira ($3m) in one account and $2m, in hard currency, in another account.

Nigeria's police officers, themselves not immune to the temptations of corruption, are not guaranteed a comfortable old age either. The investigations have revealed that the Police Pension Fund has also been ravaged.

The list is endless. Yet, the investigations have been suspended without covering all ministries and parastatals.

One of the cases that was pursued caused yet more controversy in January when a high court judge imposed a fine of $4,600 on an official who had pleaded guilty to conspiring to steal $142m from the police pension pot - instead of opting for the harshest sentence available, a two-year jail term with a fine.

The judge was subsequently suspended for a year without pay by the National Judicial Council for failing to exercise "discretion judicially and judiciously" in the case.

Government pensioners, wherever I meet them, now cut a sorry image.

They spent their working years serving the public, despite poor pay, in the belief that their old age would be well-cushioned by a generous pension for life.

Now they live by the day in the forlorn hope that a cheque may come in unexpectedly. Many of them regret their honesty in service.

If you would like to comment on Sola Odunfa's column, please do so below.


More on This Story

Letter from Africa


This entry is now closed for comments

Jump to comments pagination
  • rate this

    Comment number 6.

    As the government in Nigeria prepares to lavishly celebrate the 100th anniversary of amalgamation of Northern & Southern Protectorates in 2014;what is average life expectancy, literacy rate, condition of living of pensioners, employment rate, state of infrastructure, electricty, roads etc in that country? One day a Che,Castro or Rawlings will emerge.

  • rate this

    Comment number 5.

    Having spent plenty of time over in Nigeria I am not surprised by these comments. What does astound me is that no-one seems able to stop the corruption. It is generally accepted that it goes on in every shape and form in everyday life from top to bottom and vice versa. That includes government, police, military and customs and even airport officials. They should share the wealth with its citizens.

  • rate this

    Comment number 4.

    In SA, old family members are very valuable: if you look after grandma, you can grab her pension. Offspring will fight for who gets to keep her. One pension can provide for a family group of several adults and their numerous kids. Much easier than going out to work.
    Aren't family values wonderful?

  • rate this

    Comment number 3.

    Ah Uncle Sola, so now, taking the right stance makes you self-righteous eh? Na wa for you o! No wonder a lot of people steal: they think it's better to be a celebrated crook than to be labeled "self-righteous" by people like you.
    It's a shame...
    We need to change our mindset before anything else will change!

  • rate this

    Comment number 2.

    Maybe they figured out there's no deceased Nigerian prince who just your checking needs account number. I’d be pissed too!!


Comments 5 of 6


More Africa stories



Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.