The Abia State Government, under the leadership of Governor Dr. Alex Chioma Otti, has extended the Contributory Pension Scheme (CPS) to local government workers across the state
This was disclosed during a sensitisation and enlightenment programme organised by the Abia State Ministry of Finance in collaboration with the Pension Transition Committee for local government stakeholders on the implementation of the CPS. The event was held recently at the JAAC Building, Ogurube Layout, Umuahia.
Welcoming participants, the Commissioner for Finance and Chairman of the Pension Transition Committee, Mr. Uwaoma Ukandu, recalled that when a similar exercise was conducted for state workers, it was recommended that local government stakeholders and workers be engaged to enable them fully understand and participate in the process.
He explained that the programme was designed to ensure that public servants in Abia State are well informed, protected, and adequately prepared for a secure retirement.
Ukandu described the sensitisation exercise as timely and strategic, noting that it provided civil servants with first hand knowledge of the operations, benefits, and transactional processes of the scheme, while also addressing concerns and clarifying possible misconceptions.
According to him, the CPS, introduced at the federal level in 2004, represents a major reform in pension administration in Nigeria and is designed to guarantee transparency, sustainability, and timely access to retirement benefits.
He added that the Abia State Government, under Governor Otti’s leadership, remains fully committed to the welfare of its workforce and is determined to build a pension system that guarantees dignity, peace of mind, and financial security for workers both in active service and in retirement.
Highlighting that Governor Alex Otti has cleared huge backlog of salaries and pensions owed civil servants by previous administration and is committed to payment of pensions and salaries every month.
In his remarks, the Commissioner for Local Government and Chieftaincy Affairs, Prince Uzor Nwachukwu, revealed that since the creation of Abia State in 1991, this is the first time the Contributory Pension Scheme is being introduced for local government workers in the state.
Nwachukwu stated that with the CPS in place, workers can be assured that their entitlements will be available upon retirement. He commended Governor Otti for demonstrating strong commitment to the welfare of local government workers, citing the ongoing payment of arrears of benefits owed to former councillors by previous administrations. He therefore urged workers to continue supporting the present administration, because of the long term benefits to their future.
Also speaking, the Head of Service, Mr. Benson Ojiekere, represented by Mrs. Nkechi Ochu, commended the state government and the Pension Transition Committee for taking proactive steps to ensure that stakeholders are adequately informed and prepared for the successful implementation of the CPS at the local government level.
He reiterated that the government remains committed to policies and reforms that promote the welfare of workers both in active service and retirement, describing the implementation of the CPS as a significant step towards building a reliable and sustainable pension system. Ojiekere explained that the scheme provides a more sustainable, transparent, and effective framework for retirement benefits, unlike the former defined benefit system which was characterised by inadequate funding, delays in pension payments, and the accumulation of huge pension liabilities.
He further noted that implementing the CPS at the local government level would not only guarantee financial security for workers after retirement but also promote accountability and sustainability in pension management. He therefore urged stakeholders to fully understand the structure, processes, and responsibilities associated with the scheme to ensure its smooth implementation.
Contributing, the Permanent Secretary in the Ministry of Finance, Mrs. Elechi Obi-Chianakwalam, and her counterpart in the Ministry of Labour and Productivity, Mrs. Ijeoma Clara Dim, commended the government for ensuring that stakeholders and workers were properly informed and prepared for the successful rollout of the scheme in the local government system. They also appreciated Governor Otti for prioritising the welfare of Abia workers through the implementation of the CPS and advised eligible workers to participate fully in the enrolment process.
Labour unions, represented by the Chairman of the Nigeria Labour Congress (NLC), Comrade Isaac Ogbonnaya, and a representative of the Trade Union Congress (TUC) of Nigeria, also commended the governor for extending the CPS to local government workers and putting mechanisms in place to ensure the sustainability of the scheme. They urged workers to embrace the initiative, noting that it is designed to secure their future and enable them approach retirement with confidence rather than fear.
In their presentations, representatives of the approved Pension Fund Administrators (PFAs), Mr. Dike Christopher of Veritas Glanvills Pensions and Mr. Oge Uhuegbu of Fidelity Pension Managers, gave detailed explanations of how the Contributory Pension Scheme operates. They provided insights into its processes, contributors’ rights, benefits, and the roles of the various parties involved in pension administration in Nigeria.
They also commended Governor Otti for successfully introducing the scheme in the state and assured that with the CPS in place, no Abia State worker would retire without receiving his or her gratuity and pension.
The programme featured an interactive question and answer session and was attended by the Commissioners for Finance and Local Government & Chieftaincy Affairs; Mayors and Deputy Mayors of the 17 Local Government Areas; the Chairman and members of the Local Government Service Commission; Permanent Secretaries; Heads of Service of the various LGAs; labour and union leaders; traditional rulers; heads of government agencies; and other relevant stakeholders and workers.
